New Zealand First pledges to cut small business tax rate to 20%
Thursday 24 September 2026 · 3 outlets · 3 reports · updated In this story NZ First
New Zealand First plans to campaign on reducing the company tax rate from 28% to 20% for businesses with a turnover under $30 million. The party says the policy will cost the government approximately $1 billion annually but aims to encourage investment and economic productivity.
Key facts
3 facts
- Proposed tax rate reduction from 28% to 20%
- Policy applies to businesses with turnover under $30 million
- Estimated annual cost of $1 billion
The full story
1 min read · 3 outlets
New Zealand First has announced a campaign pledge to reduce the company tax rate for small and medium-sized businesses from 28% to 20%. This proposed rate would apply to companies with an annual turnover of less than $30 million.
The policy is estimated to cost the government approximately $1 billion per year. The party claims this cost would be "more than covered" in the medium term through increased spending, a growing economy, higher employment, and more companies paying the lower rate.
An NZ First spokesperson described the policy as a "much-needed bold step to encourage more investment by our small businesses that will create higher productivity, expand their business, and employ more New Zealanders". The party stated that lower tax rates can improve long-run productivity growth and encourage the creation of new companies.
The party intends for this move to shift focus from "short-term sugar hits to consumers" toward long-term business investment. New Zealand First noted that Australia has implemented a similar model in recent years.
Where reports differ
- One report describes the businesses as small, while another includes medium-sized enterprises
Compiled from reports by The Post, 1News and NZ Herald.