Michael Cullen, chair of the group, said the wealth tax is currently being considered in a green paper that will be published on 14 March.
The New Zealand Government created the working group in December. It followed the September 2017 general election where a left-leaning, minority government was formed.
Multiple media sources in New Zealand have reported that Cullen, speaking at an international fiscal association conference, hinted that a broader capital gains tax, which will include income from investment property and shares, is also being considered by the group.
Cullen told news agency Stuff that the nation has a very narrow range of taxes by international standards.
“The most obvious area of narrowness is the very limited scope of our current capital gains tax regime. That reflects a long New Zealand tradition, the basis of which is hard to discern,” he said.
Restricted foreign ownership
The consideration of a wealth tax comes at the same time the New Zealand Government is looking to introduce legislation that will restrict foreigners from buying homes in the country.
The Labour-led coalition, lead by prime minister Jacinda Ardern, argues that foreign buyers are contributing to a housing crisis in the country. It argues an influx in wealthy foreigners are buying up property, leading to inflated prices and a shortage of affordable housing.
Wealthy foreigners who have purchased luxury properties in New Zealand in recent years include technology guru Peter Thiel, US news anchor Matt Lauer and hedge fund pioneer Julian Roberston.
Chinese billionaire and Alibaba founder, Jack Ma, told the NZHerald in 2016 he was looking to buy a house in the country and 20 of his colleagues in their 40s had already retired there.