Last week I wrote about significantly improving New Zealand's economic performance.

One thing I did not mention was taxation. Another driver of economic growth that the Government can influence is the strengthening of the tax system. To that end the Government set up the Tax Working Group, made up of some of the best minds in the country.

Equity and fairness for the country on a whole will be a guiding principle in the Government's consideration of the Working Groups' Report. To date the only thing that the Government has overruled is a capital gains tax on family homes and a land tax. Another guiding principle is that any benefits derived from changing the tax system must clearly outweigh any potential difficulties.

Our ultimate objective is a taxation system that rewards people for hard work and encourages them to save. The Government wants to see New Zealand families getting ahead.