Greens change tax policy costings after mistake put it out by $400m

The Green Party has had to correct an error to its tax policy, which had put its costings out by $400 million.

The mistake involved extra funding for Inland Revenue being calculated as a revenue measure, rather than a cost.

The party then quietly re-uploaded the policy document with the correct figures after RNZ made enquiries.

It then released a press release saying there was a "typo" just after 12pm.

Green Party co-leader Chlöe Swarbrick admitted the error on Midday Report.

"There was a typo, which you've rightfully pointed out, with net revenue figures," she said.

On Sunday, the Green Party announced its "a tax system for all of us" tax package, which it said would "tackle inequality and corporate greed".

The new revenue measures included a 2.5 percent tax on net assets above $10m, a 33 percent tax on inheritance or gifts received over $1m, a major banks levy, and an increase to the corporate tax rate for companies with annual turnover exceeding $30m.

The Greens would also reverse the interest deductibility settings for investment property, and require big tech companies to pay a 5 percent withholding tax rate on the profits they send offshore.

According to the party's policy document, the package would increase net revenue by $5.347 billion in 2027/28, rising to $5.937b by 2030/31.

The Greens have budgeted for a funding uplift for Inland Revenue to help with the administration and enforcement of the changes.

This was costed at $100m in 2027/28, $102m in 2028/29, $104m in 2029/30, and $106min 2030/31.

"The IRD is being resourced to chase down student loan holders and small businesses to the point of record liquidations, while this government shrugs its shoulders at the idea of applying already existing laws to require mega tech companies sucking billions of dollars out of our country right now to pay their fair share of tax," said Swarbrick on Sunday.

But in the policy document, that money was mistakenly put in as a revenue measure, rather than as an expense.

This meant the Greens' costings were out by $412m.

RNZ asked the Green Party on Monday morning about the costings.

It then re-uploaded the policy document to show the $100m a year was an expense, not revenue.

This meant the new net revenue from the package is $5.147b in 2027/28, rising to $5.725b in 2030/31.

Swarbrick said the party had made an error, but stood by the party's figures.

"This is what happens when you have a large team, moving at pace. You've got designers who are producing collateral which is going out. We've made an error, and we've issued a correction to correct exactly that. But our figures still stack up and we've been transparent about that correction," she told Midday Report.

A Green Party spokesperson told RNZ the typo was "of no material impact" to the policy, and all other figures were otherwise unchanged.

The increased revenue would partly fund changes to income tax settings.

The Green Party would adjust tax rates, introducing a tax-free bracket on income under $10,000, and a new top tax rate of 45 percent on income over $160,000.

It would mean everyone earning under $160,000 would receive a tax cut.

This was projected to cost $2.3b in 2027/28, rising to $2.7 billion in 2030/31.