The Labour Party plans to refresh the country’s economy and improve healthcare access, with monies collected from a capital gains tax.
The Labour Party plans to revitalise the economy and improve healthcare access through a capital gains tax expected to generate $700 million annually.
Labour Leader Chris Hipkins announced the policy yesterday, confirming the 28 percent tax will apply to profits from the sale of commercial and residential properties—excluding family homes, farms, KiwiSaver, shares, business assets, and inheritance.
“Only profits on commercial property or residential property, excluding the family home sold after the first of July 2027 will be taxed. Family homes, farms, KiwiSaver, shares, business assets and inheritance are excluded. Every dollar raised will go into funding our health system,” says Hipkins.
The bulk of the revenue will fund health initiatives, including a new medicard offering three free GP visits per year.
Labour has yet to confirm whether general freehold whenua Māori will be exempt.
The policy is set to take effect from July 1, 2027.
