National leader Simon Bridges says Government's capital gains tax plans will be revealed next week

National Leader Simon Bridges says as a result of National's "fierce opposition" to a CGT, the Government has "backed down" on many of the TWG's recommendations. Photo / Alan Gibson

Cabinet will tomorrow formally sign off its official response to the Tax Working Group's capital gains tax proposal before unveiling its plans publicly later in the week, according to the National Party.

Its leader, Simon Bridges, understands what the Government is planning on releasing will be a diluted version of what the Tax Working Group (TWG) has recommended.

But even a watered-down version of the group's capital gains tax (CGT) would be bad news for New Zealanders, Bridges said.

The Government would not comment on whether or not ministers would see the CGT plans at Cabinet tomorrow.

Asked about Bridges' claims, a spokesperson for Finance Minister Grant Robertson said: "As previously stated, the Government will respond to the Tax Working Group's recommendations in April."

The Government's response to the TWG as a whole would be considered by Cabinet, the spokesperson said.

There is no Cabinet meeting on Easter Monday.

The TWG released its recommendations on February 21.

It recommended the Government implement a CGT and use the money gained to lower the personal tax rate and tax polluters.

The recommended CGT would cover assets such as land, shares, investment properties, business assets and intellectual property, but exclude the family home, cars, boats and art.

It was expected to bring it $8 billion of revenue.

The report contained almost 100 recommendations. The Government has always said it would be very unlikely it would adopt all of them.

Today, Bridges said as a result of National's "fierce opposition" to a CGT, the Government had "backed down" on many of the TWG's recommendations.

"The Government will now only accept the 'minority report' which will mean a capital gains tax on rental properties," Bridges said.

"But let's not be fooled by this. Just because the Government isn't kicking people in the leg, it doesn't mean they should be grateful when it punches them on the arm instead."

Bridges has said that if National wins the 2020 election, it would get rid of any CGT the current Government puts into law.

A Reid-Research poll, released last week, shows 65 per cent of New Zealanders didn't think a CGT should be a priority for the Government.

After the Government says which of the TWG's recommendations it will be adopting, officials will get to work on drafting legislation to make it law.

Government would pass any legislation to implement any policy changes arising from the report before the end of the Parliamentary term.

Robertson had promised no policy measures would come into force until 1 April 2021 – "giving New Zealanders the chance to vote on any decisions made by the Government".