Summarised by Centrist
The debate around a capital gains tax (CGT) is back in the spotlight, with ANZ’s CEO stating it’s time for New Zealand to introduce one.
So, where do the political parties stand on this potentially game-changing tax?
Labour is cautiously revisiting the idea of a capital gains tax, with Deputy Leader Carmel Sepuloni noting, “there’s more people talking about progressive tax now.” She argued that the current tax system unfairly benefits property investors and has hinted that Labour may introduce changes if re-elected.
Meanwhile, National has flatly rejected the idea, with Prime Minister Christopher Luxon dismissing calls for a CGT as counterproductive, stating, “you don’t tax your way out of a recession.”
Finance Minister Nicola Willis added that a CGT would discourage investment and argued that government spending should be controlled instead.
The Greens are long-standing advocates for a CGT, viewing it as essential for a fairer tax system. ACT, New Zealand First, and Te Pāti Māori all weigh in too: ACT rejects the tax, while Te Pāti Māori campaigns on wealth redistribution, claiming that a CGT could have generated billions in revenue.
Editor’s note: read more about wealth and capital gains taxes here and here
