Objection to the foreign buyers tax could create a tough financial situation for the incoming Government. 

Newstalk ZB understands coalition negotiations are being held up by disagreements over tax.  

It's understood New Zealand First has problems with the foreign buyers tax, along with the proposal to redirect the Climate Emergency Response fund. 

Independent tax expert Geof Nightingale told Mike Hosking that getting rid of that would leave them with few options for raising revenue. 

He said that without the tax, the Government may look to the public service for savings.

Nightingale said that because they campaigned on fiscal prudence borrowing isn't an option, so they will most likely look to make further cuts to spending.

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