4. Question No. 4—FinanceANDREW BAYLY (National—Port Waikato) to the Minister of FinanceQuestion No. 4—Finance4. ANDREW BAYLY (National—Port Waikato) to the Minister of Finance: Will he rule out any further changes to income taxes?Hon GRANT ROBERTSON (Minister of Finance): As I said to the member on Wednesday last week every Government makes changes to tax and it would be foolish for a Minister of Finance to rule out changes such as automatic tax refunds or simplifying rate calculation to avoid the need for secondary tax which are examples of changes the last Government made to income tax in the interests of taxpayers.Andrew Bayly: Will he rule out increasing the 33 percent tax rate on trust income?Hon GRANT ROBERTSON: As was stated last week in the House we did not increase the trust rate because there are legitimate uses for trusts. What we have clearly said is that if we see misuse of trusts we will be prepared to act on that.Andrew Bayly: Will he rule out increasing the five-year brightline test after which a gain from the sale of a house would be treated as income for tax purposes?Hon GRANT ROBERTSON: As we covered in the House last week we have asked the New Zealand Treasury to look at how the brightline test is working and to see whether or not it needs to be changed in any way whatsoever. What I would say is I do again thank the National Party for the introduction of the brightline test.Andrew Bayly: Will he rule out increasing the top portfolio investment entity income tax rate of 28 percent?Hon GRANT ROBERTSON: There are no plans to do that.Andrew Bayly: Is he aware that—SPEAKER: Order! Hang on. I'm not sure that that's quite the answer to the question that the Minister tried to give. There are no plans to rule it out?Hon GRANT ROBERTSON: No there are no plans to do the thing he said.SPEAKER: OK. All right it's clearer now. I've helped the Opposition a lot I think. I'm sorry.Hon GRANT ROBERTSON: Is that counted? Andrew Bayly: Thank you Mr Speaker. Is he aware that any additional income taxes will further increase the cost of rents under this Government?Hon GRANT ROBERTSON: That question is based on—it was purely hypothetical and what I would say to the member as was traversed in question No. 2 today is that rents as we know are a product of supply and demand and if the previous Government had actually done something about increasing supply we wouldn't be where we are today.Andrew Bayly: Why should the public not believe it is a broken promise if he increases the income tax rate on trusts or extends the brightline test considering—SPEAKER: Order! The member's asking a question about something that the Minister has no responsibility for.Hon Gerry Brownlee: Point of order. Repeatedly in debates last week and the many statements made to the House and indeed the Speech from the Throne reference was made exactly to the promises made by the Labour Party in the election process. So why would it be ruled out asking a Minister if he's on board with that?SPEAKER: I wasn't actually referring to anything to do with a party matter. It was a question of the responsibility for public opinion which the member based his question on and this Minister has no responsibility for that.Andrew Bayly: Why would it not be a broken promise if he increases the income tax rate on trusts or extends the brightline test considering Labour's manifesto made no reference to tax increases beyond the new 39 percent income tax rate?SPEAKER: Order! The member still hasn't got to the point where he's got a question of Government responsibility.Hon Gerry Brownlee: Point of order Mr Speaker. It seems unreasonable that Ministers in many of their speeches in the House so far can claim their mandate from a political manifesto but then not be responsible for their view on how it's delivered.SPEAKER: It's one of the essences of question time and the difference between questions and debates—members in debates can say more or less what they want you know more or less. But when it's question time there has to be a link back to something for which the Minister has ministerial responsibility and a party political document is not that.Andrew Bayly: Does he agree that the public may believe that it is a broken promise if he increases the income tax rate on trusts or extends the brightline test considering he said on Newstalk ZB that he would not be increasing any taxes beyond the new 39 percent income tax rate?SPEAKER: I'm going to ask the member whether he said that in his role as Minister of Finance.Andrew Bayly: It was stated on 9 September Mr Speaker.Hon GRANT ROBERTSON: A point of order Mr Speaker. I think this will be helpful. Last week in the House when Mr Bayly used that question he did quote the Labour finance spokesperson Grant Robertson and you'll recall I made a very humble and modest statement about that gentleman.Andrew Bayly: Speaking to the point of order Mr Robertson was also asked a similar question about the trust tax rate in an interview on Thursday last week on Newstalk ZB and he—Hon GRANT ROBERTSON: You could have put that in the question then.SPEAKER: I think it's getting close to Christmas and it's excessive kindness on my part but I will allow the Minister to answer the question on the basis that by next year we get our questions a bit tidier.Hon GRANT ROBERTSON: The premise of the member's question is hypothetical. As we have stated in the House we have asked the Treasury to take a look at existing measures around the demand side of housing and we await that advice.