“The ACT Party is welcoming the Government’s backdown on changes to the tax system,” says ACT’s Associate Finance spokesperson Damien Smith.

“The Government claimed people would use business structures to avoid its new 39 per cent tax rate and proposed changes to the tax system. Now it’s quietly delayed those changes.

“Inland Revenue says it has a number of concerns about Labour’s proposal as it would unfairly capture people who were not trying to avoid paying taxes.

“It should just dump these changes completely. It was insulting to individuals that they would use business structures to manipulate paying the top tax rate.

“The 39 cent envy tax was always a bad idea.

“ACT is the only party in Parliament who has been totally unequivocally clear on the issue of tax.

“We will repeal any taxes proposed by Labour, we will get rid of National’s capital gains tax in the bright-line test, we will cut the 30 percent marginal tax rate to 17.5 percent, we will reverse the 39 percent tax rate and we will reverse the Government’s interest deductibility change.

“ACT stands for real change, our proposals would give a $2,000 tax cut to someone on the average wage.”