5. Question No. 5—FinanceCHLÖE SWARBRICK (Green—Auckland Central) to the Minister of FinanceQuestion No. 5—Finance5. CHLÖE SWARBRICK (Green—Auckland Central) to the Minister of Finance: Does he stand by his statement that in the economic circumstances that we are in at this time we do not believe that major tax changes are appropriate"; if so when would economic circumstances be appropriate for taxing wealth or capital gains?Hon GRANT ROBERTSON (Minister of Finance): In answer to the first part of the question I stand by my statement in its full and proper context. In answer to the second part of the question the member is asking about a hypothetical situation but I would refer her to the rest of my answer to her question on 17 May 2023 where I went on to say we have made the tax reform that we promised to make at the 2020 election. Future policies are for political parties to make.Chlöe Swarbrick: What could be a more appropriate time to tax wealth or capital gains when the Government's own research shows that the wealthiest 311 families in this country pay an effective tax rate less than half of that of the average New Zealander?Hon GRANT ROBERTSON: Clearly the Cabinet decision is that the particularly volatile and uncertain economic environment that we're living in now is not the appropriate time to make those major tax changes. I would note that since that statement was made in May we have seen further volatility globally particularly with respect to what's happening in China and indeed across other parts of the world and so that part of that statement certainly stands.Chlöe Swarbrick: Is it not the right time to create a fairer and more equitable tax system when 55 percent of New Zealanders report being in a financially difficult position compared to the wealthiest 311 families who own $85 billion in wealth more than the bottom 2.5 million New Zealanders combined?Hon GRANT ROBERTSON: Well as I've said on a number of occasions in this House this is a particularly challenging time for many New Zealand households and indeed many New Zealand businesses. That's the reason why the Government has stepped up with significant support over a long period of time to low and middle income New Zealanders and we will continue to try to find the opportunities to do that.Chlöe Swarbrick: Is it the right time to tax wealth when Aotearoa's tax system is ranked 136th in the world for reducing inequality?Hon GRANT ROBERTSON: Well I haven't seen that particular statistic but I have seen statistics that rank within the OECD around things like the tax wedge that New Zealand actually compares relatively favourably on. During this term of Government we've sought to make the tax system fairer by increasing the top rate putting in the trustee rate to reach that top rate as well and we will continue to look for opportunities to do that balanced against all of the other needs that we have.Nicola Willis: Is it the Minister's position that now is not an appropriate time to introduce taxes of the sort being discussed with the member due to volatility in the global economic environment and if so what are the economic conditions in which the Minister thinks it would be appropriate to introduce taxes of that sort?Hon GRANT ROBERTSON: As indicated by the Cabinet decisions in May a time when the global economy is so uncertain where companies and households have been through very turbulent times and where there are ongoing significant challenges to the New Zealand economy is clearly not that time.Nicola Willis: So does the Minister think it would be appropriate to introduce wealth taxes or capital gains taxes if the economic conditions were more permissive?Hon GRANT ROBERTSON: The Cabinet has taken the decisions that are to be taken in this term of Government on taxation and there are no further decisions to be taken in that regard. Clarity about taxation is very important and we look forward to hearing clarity from the National Party about taxation—for example whether or not the 39 percent top rate is coming back.Ricardo Menéndez March: Does he agree with 63 percent of people in Aotearoa who think now is the right time to implement a wealth tax to provide free dental care so people don't have to live with debilitating pain?Hon GRANT ROBERTSON: As has already been indicated Cabinet has taken the decision not to implement a wealth tax.Ricardo Menéndez March: Who is most disproportionately impacted by the current economic conditions that he describes the one in nine children living in poverty or the 311 wealthiest families in Aotearoa?Hon GRANT ROBERTSON: Quite clearly those people who are our most vulnerable are the most impacted by a deterioration in economic conditions and that's exactly why as a Government I am proud that we have lifted the rates of main benefits lifted family tax credits lifted childcare assistance supported superannuitants students—all of them—with the cost of living pressures that they're facing. Those are the things that need to be prioritised over unfunded tax cuts that would deliver significant benefits to the wealthiest New Zealanders."