A new Capital Gains Tax proposal from Labour aims to level the financial playing field and fund much-needed health initiatives, but what does this mean for Māori landowners and communities?
Announced yesterday, capital gains would be taxed at 28% on the sale of commercial or residential properties, excluding family homes, farms, and KiwiSaver shares.
Labour’s finance spokesperson Barbara Edmonds says Māori land, specifically land protected under Te Ture Whenua Māori Act, will be safeguarded under the plan, with similar protections to existing tax rules.
“So there are already currently safeguards for Māori land, you know, Māori authorities and land that’s held under Te Ture Whenua Māori Act, because of the way there are restrictions on succession and the way that property can be treated. In 2023, when I was the minister of revenue, I brought in a change to ensure that we safeguarded the treatment of Māori land under the bright line rules…” says Edmonds.
Under the new policy, Māori won’t face additional taxes on whenua Māori, with Edmonds confirming protections will remain in place.
She says revenue from taxing property speculators will be ring-fenced for health – including three universal free GP visits – to help address long-standing inequities for Māori whānau.
“We know by research that if you can get people in to see a GP first, to see their primary health care provider first, you are stopping them from getting more sick. And we also know the research shows that the barriers to being able to see your GP- one of the barriers is actually being able to afford it,” says Edmonds.
Edmonds hopes targeted tax reform and new health spending will deliver tangible benefits to Māori, while preserving the integrity of whenua Māori for future generations.
