Under Labour, every New Zealander will get three free doctor's visits a year through the new Medicard, paid for by a simple, targeted tax on profit from the sale of investment property.
- 3 free doctor's visits a year for every New Zealander, via a new Medicard
- Funded by a 28% tax on the profit made after 1 July 2027 when a commercial or residential property is sold (excluding the family home and farms)
- No tax on any gain made before 1 July 2027
- Full exemptions: the family home, farms, KiwiSaver, shares, business assets, inheritances and personal items
- An estimated 9 in 10 New Zealanders won't pay the tax
- Most Kiwis see their GP about 2.5 times a year: from July 2028, an estimated 4 in 5 New Zealanders won't have to pay for a routine GP visit
- A practical plan to free up more than 4.5 million GP appointments every year to make it easier to see a doctor
- Total cost: $393.3 million in 2027/28, rising to around $553 million a year once fully in place
Why Labour is doing this
Labour will ensure New Zealand has a strong, growing economy that rewards hard work and pays for the services we all rely on, like healthcare.
Too much of our national wealth is tied up in property instead of more productive parts of the economy that lift wages and drive innovation. It's one of the reasons New Zealand is falling behind. Labour will change that.
New Zealand cannot realise its potential, create jobs, or deliver the services we all deserve through property investment alone. Our targeted capital gains tax will level the playing field for Kiwi businesses and innovation - helping grow wealth and create jobs.
“I can't afford to go [to the GP] when I really need to. I have to put it on the backburner so that I can afford my rent.”
The cost of not acting
No one should have to choose between seeing a doctor and putting food on the table, but that's the reality for far too many New Zealanders. Under Christopher Luxon, one in six New Zealanders cannot afford to visit their doctor when they are sick. Some general practice fees are heading towards $100 a visit. It doesn't have to be this way.
“I don't go to the doctor unless really urgent – I'd rather go straight to the hospital. It costs me $54 out of the little money I have left for food.”
How the Medicard works
Every New Zealander will get a new Medicard that they can use to access three free doctor's visits each year at their enrolled practice. The three free visits are also accessible through a secure app.
- People receive their Medicard at birth, or when they become a citizen, resident, or otherwise eligible for healthcare.
- Your Medicard can be used at the general practice you're enrolled with whenever you need an appointment with a doctor or a nurse.
- The three free visits apply per year and don't roll over if they aren't used within the year, they won't carry into the next.
- Your three free visits cover appointments with a doctor or nurse at your enrolled general practice. They don't include services that are already free (such as immunisations or Access and Choice services), after-hours care, or ACC visits.
- Using a clinical phone triage service will not count toward your three free visits.
- The card-and-app system tracks entitlements in real time, integrates securely with primary and community provider software, and is designed to protect privacy, ensure accessibility (including for non-digital users), and offer multilingual support.
- The Medicard will integrate with My Health Account, New Zealand's digital health identity system, and will hold your National Health Index (NHI) number and health entitlement information.
How it's funded: the targeted capital gains tax
Labour will introduce a simple, targeted 28% tax on the profit made after 1 July 2027 when a commercial property or residential property (excluding the family home) is sold. Any gain from before that date won't be taxed. Every dollar raised will go directly to our health system.
- It only applies to the profit when a commercial or residential property is sold, excluding the family home.
- Our targeted capital gains tax completely exempts the family home, farms, KiwiSaver, shares, business assets, inheritances, and any other personal items.
- The tax rate will be 28%, the same as the company tax rate, meaning property profits will be taxed like other business activity.
- No one will pay a single dollar on any gain made before 1 July 2027.
For full worked examples and frequently asked questions on the tax itself, see Labour's capital gains tax policy page.
Fixing the general practice funding problem
For more than two decades, general practice has been funded mainly by a flat payment for each enrolled person, with clinics allowed to charge a patient co-payment on top. That model is broken: independent analysis in 2022 found general practice was underfunded by around 7.6 percent - about $137 million against total practice income of $1.67 billion.
As part of delivering three free doctor's visits, Labour is proposing a new model known as independent pricing. An Independent Pricing Authority would be up and running by July 2028 and will set an evidence-based national rate for GP funding that reflects real costs and patient need. When the rate goes up, Health NZ will be required to fund the increase the following year - ending the cycle where practices either absorb rising costs or pass them on to patients.
Modelled on Australia's Independent Health and Aged Care Pricing Authority, the body will use comprehensive data to set sustainable prices, including practice costs, staffing, patient mix, service delivery, and sector-wide cost studies. Money currently in co-payments will be added to general practice funding, so clinics won't be worse off under the new system.
How Labour will free up 4.5 million GP appointments a year
Labour has worked with health experts on a practical plan to free up more than 4.5 million GP appointments every year through simple, affordable changes that free up doctors' time so they can focus on patients, not paperwork.
Simple, affordable changes that free up doctors' time so they can focus on patients.
| Change | Appointments freed up per year |
|---|---|
| Clinical phone triage, directing patients to the right care | ~1.9 million (plus a further 2.9 million visits streamlined) |
| Expanding the use of technology to reduce administration | ~1.5 million |
| Support for advice on long-term conditions | ~1 million |
| Targeted funding to expand clinic space in high-demand areas | ~180,000 |
Where a patient's issue is resolved through telehealth triage, it will not count against their annual entitlement to three free doctor's visits.
Other changes in the plan
- A new Digital Innovation Fund, so clinics can quickly trial and adopt the best new technology as it becomes available.
- More open and efficient procurement for doctors, including access to the national Health System Catalogue, to reduce everyday running costs.
- A review of telehealth funding to ensure it complements, not replaces, face-to-face care.
The cost of Labour's plan
Spending ramps up as the Medicard and supporting initiatives roll out, reaching a stable annual cost from 2029/30 onwards.
| Initiative | 2027/28 | 2028/29 | 2029/30 | 2030 & outyears |
|---|---|---|---|---|
| Free doctor's visits | 323 | 490 | 490 | 490 |
| Medicard and app | 20 | 14 | 14 | 14 |
| Clinical triage | 30 | 30 | 30 | 30 |
| AI scribe technology / Digital Innovation Fund | 4.3 | 5 | 5 | 5 |
| Improving self-care | 5 | 3 | 3 | 3 |
| Independent Pricing Authority | 6 | 6 | 6 | 6 |
| Facilities (grants) | – | 5 | 5 | 5 |
| Total | 393.3 | 553 | 553 | 548 |
Note: The above figures are NZ$ millions
Who has to pay the new property tax?
Only people who sell a commercial property, or a residential property other than their family home, for a profit made after 1 July 2027. Nine out of 10 New Zealanders do not own more than one property or a commercial property, so they won't pay it.
What's exempt from the tax?
The family home, farms, KiwiSaver, shares, business assets, inheritances and personal items.
When does the tax start?
It applies only to profit made after 1 July 2027. No gain made before that date is taxed.
How many free doctor's visits will I get, and do they roll over?
Three a year, for every New Zealander, through the new Medicard. They don't roll over if you don't use them within the year, they don't carry into the next.
What's not covered by my three free visits?
Services that are already free, such as immunisations or Access and Choice services, plus after-hours care and ACC visits, are not covered by your three free visits.
What is the Independent Pricing Authority?
A proposed new body, modelled on Australia's Independent Health and Aged Care Pricing Authority, that would set an evidence-based national funding rate for general practice based on real costs and patient need, due to be up and running by July 2028.
Labour will ensure New Zealand is a country that backs its people and its own potential - a place where our kids want to stay and build their lives.
That's what's possible: a strong economy and free doctor's visits for everyone.
Download the full policy document.
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