With the election approaching, Labour, the Greens, and the Opportunity Party have each proposed tax changes targeting wealth and property. Economists say the details matter enormously — and that the tax base will eventually need to broaden regardless of which party wins.
Tax is re-emerging as a central debate in this year's election campaign, with three distinct proposals on the table from different parties — each targeting wealth or property in different ways.
Here is a summary of where things stand, drawing on RNZ's breakdown of the proposals.
Labour's capital gains tax
Labour has committed to a narrow capital gains tax covering residential and commercial property sales, but excluding the family home and farms. The rate would be 28 percent, applied only to gains realised after 1 July the following year. Revenue would fund three free doctor visits per year for all New Zealanders.
Westpac chief economist Kelly Eckhold said a CGT had become relatively mainstream among economists. "The devil is in the detail on these things, but I've never thought that a capital gains tax is particularly difficult, at least applied to property when you've sold it, on realised gains," he said. He noted New Zealand was unusual internationally in not having one at all. Simplicity chief economist Shamubeel Eaqub said the broader issue was the tax system's heavy reliance on income and GST — both regressive — rather than returns on capital. "Most income from capital is already taxed. So for example your KiwiSaver income is taxed. It's only around land, farms, [and] property business."
Opportunity Party's land value tax
The Opportunity Party proposes a 1.75 percent annual tax on the value of urban land, and 0.5 percent on rural land, with deferrals available for farmers and retirees who are "land rich, cash poor." Revenue would fund a universal citizen's income of $19,400 per adult.
Eckhold said the design challenge was that an annual charge could fall on people without the cash flow to pay it — similar to the problem with residential rates for retirees on fixed incomes. Eaqub, however, called land tax the "cleanest, most fair, efficient" option because it was difficult to dodge. He acknowledged the political reality: "I don't think we're there yet. So there's a difference between what I think should happen versus what I think is likely to happen."
Greens' capital acquisition tax
The Greens would introduce a capital acquisition tax — essentially an inheritance tax by another name — on assets and gifts above $1 million, exempting family farms and the family home. Deloitte tax partner Robyn Walker said the renaming was likely deliberate: "the term 'inheritance tax' tends to get a bad reaction." She noted the exemption for the family home would likely drive estate planning activity and keep wealth tied up in property.
Eckhold raised a structural concern common to all wealth taxes: the tax base can relocate or disappear. "In the UK they have an exit tax, so if you were going to sell or leave the country to avoid the tax, they would tax you on exit anyway." He said this made wealth taxes more complex than taxing land or income. The property market context is relevant: New Zealand housing has shown another flat month in June 2026, per RNZ's housing market report, against a backdrop of cost-of-living pressures and election uncertainty.
The broader fiscal picture
Eckhold said whichever way the election went, the long-term fiscal picture demanded action. "If we're getting into the 2030s and beyond, the combination of increasing healthcare costs [and] superannuation basically means we're going to need a whole range of tools to stabilise the fiscal situation. I'm sure part of that is going to be taxation."
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.