"Every family has its own unique economy that has the potential to thrive in its own right, independent of and without strings attached to the state."

- Richard Lewis: Family Party Conference May 08

Our thinking on Economy: Lasting financial success will be achieved through a system that rewards hard work, creates opportunity, encourages participation and allows families and individuals to create and manage their own wealth.

Over the five years to 2005 the personal tax take increased by 40% and business tax by 56%. According to a report by the OECD, New Zealand is the 13th most heavily taxed country of 30 industrialised nations. Since taking office, Labour has spent $85 billion more than if core Government spending had been held at 1999 levels. The core public service has ballooned from 29,000 personnel in 1999 to 44,500 today. New Zealand families have had to foot the bill. The obvious question is, for what benefit?

Moreover, household living costs have skyrocketed, making affordability for the basic necessities beyond the reach of many families. This is a matter of utmost concern and priority for The Family Party and is reflected in our economic policies. 

Economic policies that put families first: The Family Party will:

• Pursue low family-friendly taxes
• Reduce all personal tax rates to a lower and flatter tax structure to keep more money with the earner and in the home 
• Spend wisely to reduce the tax burden for every New Zealander
• Remove GST on basic (primary staple) food groups
  • Infant and elderly necessities
  • Household energy
  • Rates (a tax on a tax)
  • And off the excise duty on fuel (a tax on a tax)
• Pursue income splitting for marriage-centred families
• Ensure tax brackets are adjusted (annually) relative to inflation changes 
• Encourage long-term savings and investments by savings-friendly taxation
• Look at providing a one-off cash incentive for married couples purchasing their first home (See Housing Policies)

Empowering business: The Family Party recognises small businesses as being vital to the economic success of New Zealand families and our overall economy and will therefore support businesses in every way. 97% of all New Zealand businesses are of a small to medium size, employing 20 workers or less. Improvements to economic growth will be achieved through low personal and business tax rates, value added exports, and public sector efficiency. To that end, The Family Party will:

• Move towards a medium term goal that aligns the corporate tax rate, trust tax rate and top personal tax rate
• Abolish Fringe Benefit Tax
• Reduce Government expenditure as a percentage of GDP
• Improve transparency in the Government sector
• Minimise compliance costs. Businesses should not be bogged down with Government compliance and red tape
• Improve the Resource Management Act for efficiencies of compliance
• Give priority and focus towards the export sector

Asset sales: The Family Party recognises the value of retaining New Zealand’s infrastructural assets, strategic assets and land. Therefore foreign acquisitions will be restricted. To that end, The Family Party will:

• Not allow foreign acquisitions of infrastructural assets, selected strategic assets and strategic land
• Where decided in advance to allow foreign acquisitions for selected strategic assets, then foreign investment will be limited to 24.9%