Green Party defends inheritance tax reforms amid ACT criticism

Greens co-leader Marama Davidson is defending her party’s inheritance tax proposal after concerns were raised that it would disproportionately affect Pacific families.

In an interview on Pacific Mornings, Davidson says the proposed tax, which would impose a 33 per cent tax on inheritance or gift, would only apply to mortgage-free homes.

“For the most part, 23 per cent of the population will pay either the same or less tax,” Davidson says.

“Our wealth tax will only impact the highest earners, for an individual to have more than $2 million that's mortgage-free. For example, if it was a home so it doesn't include debt.”

This year marked the first time the Green Party launched a Budget that faced criticism.

The ACT Party condemned the Greens’ inheritance tax, describing it as a ‘reckless attack’ on intergenerational family farms.

Marama Davidson at the launch of the Green Party's first Budget in early May. Photo/Green Party

New Zealand does not have an inheritance tax, which means that all assets within an inherited estate are tax-free.

“With the inheritance tax, this could very well force many farming families off the land in the event of an untimely death of a family member,” the ACT Party says in a statement.

“The surviving family members would be left with a tax bill, and the only way to settle it may well be selling the farm. This was the outcome in the past when we last had an inheritance tax in this country.”

Watch part one of Marama Davidson's interview here

As part of the Greens’ Budget campaign, the party is touring the country from Whangārei to Dunedin, with plans to extend to more towns.

“We've been to Gisborne, we've been to Taranaki, we've been to Nelson just last weekend, after the weather and before the weather.

“We are coming to South Auckland this week, which I'll get to, but we're also planning to get to the deep south, Queenstown.”

Davidson, who represents the Green MP in Manurewa, encourages the South Auckland community to voice their opinions following the release of their first budget.

Watch part two of Marama Davidson's interview here

“We're wanting to hear how our solutions fit, and we're wanting to hear what the realities are from people in our very South Auckland communities,” she says.

“So we really invite people to come along and hear more about what we're offering, but also really speak up about what is happening in your local communities as well.”

The Greens will hold their first event in South Auckland at Te Puke O Tara on 18 July at 6.30pm, followed by a campaigning workshop at the Manurewa Library the next day at 2pm.