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Budget 2015 continues the Government’s investment in ensuring fairness in the tax system by pursuing those attempting to avoid paying tax, Revenue Minister Todd McClay says.

Budget details announced yesterday include a further Budget allocation of $74 million over five years for Inland Revenue’s investigations activity. 

“As announced earlier this week, $29 million of that extra funding will be used to increase property speculation,” says Mr McClay.

Budget 2015 includes changes to tackle child support debt and to encourage parents to pay what they owe for children for whom they are responsible, Revenue Minister Todd McClay says.

Over the next four years, the Government will forgive around $1.7 billion of penalties owed by parents to encourage more support to reach children.

“Child Support debt is currently $3.2 billion and rising, and only around $700 million is actual child support,” Mr McClay says.

The Government is taking extra steps to bolster the tax rules on property transactions – including those by overseas buyers - and to help Inland Revenue enforce them, Finance Minister Bill English and Revenue Minister Todd McClay say.

The tax measures are also expected to take some of the heat out of Auckland’s housing market and sit alongside the Reserve Bank’s latest moves to address associated financial stability issues, Mr English says.