This consultation document intends to improve understanding on the likely impacts of taxes on costs of capital (or hurdle rates of return) and the consequent implications for inbound investment, productivity and economic performance.

Chartered Accountants Australia and New Zealand are supportive of this project and related workstreams. In summary our comments are as follows: 

• We agree that the impact of tax on investment and productivity is a worthwhile subject to investigate further
• Several of the suggested options for consideration have been considered previously and it would be preferable to take a broader approach
• We recommend that the work also consider whether an increase in Foreign Direct Investment would increase New Zealand’s productivity
• The work should consider the wider role of the tax system
• We suggest that the outcomes be used as a framework for future policy work.