A fair capital gains tax will strengthen Kiwi businesses and support vital healthcare services, writes East Coast Labour list MP Jo Luxton

We need to grow the economy so that everyone benefits and back Kiwi businesses.

That’s why I’m proud to stand by Labour’s policy announcement for a simple, targeted Capital Gains Tax (CGT).

Farms and the family home are not included in this tax – in fact, nine out of 10 people won’t pay it, but everyone will reap the benefits.

Our CGT is designed to focus investment into the productive economy, and every dollar raised will be ring-fenced for health.

It’s time to reward people creating jobs and growing the economy, rather than property speculation, so our simple, targeted tax changes will make sure those profiting from property pay their fair share, levelling the playing field for Kiwi businesses and innovation.

The CGT applies only to profits made on residential investment property and commercial property, and will come into effect after July 1, 2027, and only when a property is sold. KiwiSaver, shares, business assets, inheritances, and any other personal items are exempt.  

Keeping farms productive, and fully exempt

Farming is vital to our rural communities and to the whole of New Zealand. That’s why I want to reassure our farmers that farms are exempt from this tax.

According to the legislation, farmland means land that:

n Is actively being worked in a farming or agricultural business by the land’s owner, including accommodation for farm workers when it’s part of the business.

n Is capable of being worked as a farming or agricultural business because of its area and nature.

This policy protects the future of our farmers while still encouraging investment into the productive economy as a whole.

Funding what matters: your health

One in six New Zealanders delay seeing their GP because they can’t afford it. When people can’t get help early, health issues get worse, while hospitals get busier.

Getting people to the doctor before they end up in hospital is one of the most practical, and meaningful things we can do to reduce pressure on the health system and keep people well.

Building a more productive investment framework

Labour has also announced a Future Fund to support investment in infrastructure and innovative Kiwi business to create good, secure jobs and give people a reason to stay and build their future here.

New Zealand cannot continue to build prosperity through housing bubbles. That model doesn’t boost export income, innovation, or productivity growth. Instead, it leaves our economy vulnerable to a boom-and-bust cycle, where some are locked out of homeownership simply due to timing, while others make short-term gains.

New Zealand deserves a future where investment drives growth, where families can afford a doctor when they need one, and where our economy works for everyone.

A fairer tax system and free doctor’s visits for every Kiwi: and that’s what our plan delivers.