A targeted capital gains tax on the profit made after 1 July 2027 when a commercial property or residential property (excluding the family home) is sold.
The family home, farms, KiwiSaver, shares, business assets, inheritances, and personal items will be exempt.
Nine out of 10 New Zealanders won’t pay tax on the property they own, and everyone will get three free visits a year to the doctor.
Labour will grow the economy for everyone, back Kiwi businesses, and fund three free doctor’s visits a year for every New Zealander.
“Right now, our tax system rewards property speculation instead of the people creating jobs and growing the economy. We will change that,” Labour leader Chris Hipkins said.
“Our simple, targeted tax changes will make sure those profiting from property pay their fair share, leveling the playing field for Kiwi businesses and innovation.
“Every dollar raised will go straight into the health system, including funding three free doctor’s visits a year for everyone with a new Medicard. This will save New Zealanders money every year.
“Because it’s part of our plan to deliver a better economy for Kiwi families, our targeted capital gains tax completely exempts the family home, farms, KiwiSaver, shares, business assets, inheritances, and any other personal items.
“Christopher Luxon promised to fix the economy and protect public services, but he is making it worse. Only Labour will grow the economy, support Kiwi businesses, and rebuild the health system,” Chris Hipkins said.
“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,” Labour health spokesperson Ayesha Verrall said.
“One in six New Zealanders cannot afford to visit their doctor when they are sick. Some doctors' fees are heading towards $100 a visit. That hasn’t happened by accident. It is a direct result of Christopher Luxon’s cuts to healthcare and tax breaks for tobacco companies and property speculators.
“Our plan means that 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.
“This election is make-or-break for our health system. Under a Labour Government, all someone will need to see their doctor is a Medicard, not their credit card,” Ayesha Verrall said.
Note for editors:
Simple, targeted tax changes:
Currently, most profits from selling commercial property or residential property are tax-free. However, work and productive business activities are taxed.
A new targeted tax would apply only to the sale of a commercial property or residential property (excluding the family home) and only on the gains made after 1 July 2027. There will be no tax on any gains made before that date.
Everything else is exempt: family homes, farms, KiwiSaver, shares, business assets, inheritances, gifts, and personal items like cars, boats, art, and furniture.
The tax will be set at 28 percent to align with the company tax rate, so that property transactions are taxed in the same way as all business activities.
How the Medicard will work:
Every New Zealander will receive a Medicard at birth or upon gaining residency or citizenship.
It will hold the information to identify you at health services and track your entitlements and usage.
The card will also be available as an app, integrated with GP and community health systems.
Designed for non-digital users and supports multiple languages.
