New Zealand remains one of the few developed countries without a capital gains tax. Previous Labour governments had shelved the idea amid strong political resistance.<\/p>\n
The policy, which would kick in from July 2027 if Labour were elected, would introduce a set 28% capital gains tax on commercial and residential property, excluding key assets such as the family home, farms, KiwiSaver, shares, business assets, inheritances and personal items. It would replace the current brightline test, Hipkins confirmed.<\/p>\n
The revenue would be partly used to fund three free doctor’s visits, and any leftover funds would be ring-fenced for healthcare.<\/p>\n
Inherited properties would be exempt from the tax, a carve-out Hipkins defended despite criticism it undermined fairness.<\/p>\n
“Wherever you draw the line in designing a tax system, there are always going to be trade-offs,” Hipkins said.<\/p>\n
“We heard really clear feedback from New Zealanders that they want to be able to pass down their family home to their kids.”<\/p>\n
He also confirmed the CGT would not be adjusted for inflation, saying doing so would “ultimately not raise much revenue”.<\/p>\n
Hipkins also dismissed concerns the tax would raise rents, arguing that overseas evidence showed “no material impact” from similar schemes.<\/p>\n
Profits from selling some properties will be taxed to fund healthcare, Hipkins says.\u00a0 (Source: 1News)<\/p>\n
Labour’s plan to introduce three free GP visits a year<\/a> for all New Zealanders would be paid for by the CGT, Hipkins said, adding it would reduce health costs by keeping people out of hospital.<\/p>\n “All New Zealanders pay tax, and those on higher incomes pay more,” he said. “They should have access to universal, free healthcare.”<\/p>\n Pressed on the short-term funding gap before CGT revenue begins to roll in, Hipkins said the four-year budget cycle would “smooth” the difference but acknowledged there could be timing issues.<\/p>\n “I can absolutely tell you that over the four-year period, we will generate more revenue from the capital gains tax than the free doctors’ visits will cost,” he said.<\/p>\n Prime Minister says the primary consideration is to make sure that we’ve got a system that’s much more workable. (Source: 1News)<\/p>\n Hipkins confirmed Labour would reinstate pay equity claims scrapped by the current Government, though he could not say whether the scheme would cost more or less than the previous $12.8 billion forecast.<\/p>\n
![\"Hipkins](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/11\/hipkins-again-declined-to-comment-on-whether-labour-would-wo-5EA3DFJLIRG5FGMICKEGIGTT7E.png\")
<\/p>\n