Labour to take a capital gains tax to the election, give free GP visits in return
Tuesday, 28 October 2025
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Labour has announced that it will take a capital gains tax to the next election and that the proceeds will fund three free doctors’ visits each year.
The new policy, which has been amongst the worst kept secrets in politics, has been widely expected. The policy will be more than an extension of the bright line test, which currently applies to the taxation of investment property. It will exempt the family home from the tax, but is broader than expected in that it will include both residential and commercial property transactions.
It will apply to all capital gains made after a “valuation day” in 2027. All capital gains made up until that point will not be taxed. And while it will apply to commercial property it will not apply to plant or equipment.
The broader pitch from the opposition party is that productive investment is taxed, while property speculation is not.
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“Because it’s part of our plan to deliver a better economy for Kiwi families, our targeted capital gains tax completely exempts the family home, farms, KiwiSaver, shares, business assets, inheritances, and any other personal items,” Labour leader Chris Hipkins said in a statement.
The tax would effectively be grandfathered, applying to any capital gains made after July 1, 2027, no gains before that point would be taxed. The rate of tax would be set at 28% to align it with the taxation of other business activities.
Hipkins said the tax would help to rebalance the property market, while allowing Labour to introduce a new “medicard”. Hipkins brandished a sample card at a press conference announcing the changes.
Labour says that the money from the new tax will be “ringfenced” to pay for the new GP visits.
“Right now, our tax system rewards property speculation instead of the people creating jobs and growing the economy. We will change that,” the Labour leader said in a surprise statement which was released at 5.03am on Tuesday.
The party says that nine out of 10 New Zealanders will not pay the tax and that “the family home, farms, KiwiSaver, shares, business assets, inheritances, and personal items will be exempt.”
“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.
“Every dollar raised will go straight into the health system, including funding three free doctor’s visits a year for everyone with a new Medicard. This will save New Zealanders money every year.”
Details are currently light, but the new Medicard card appears to be be something like the Australian Medicare card - where patients get medical doctor and medical care subsidies loaded on a card.
According to Labour, all New Zealand citizens would receive the Medicard at birth or upon gaining residency or citizenship. It will contain information, data and health entitlements.
“Our plan means that every New Zealander will get a new Medicard that they can use to access three free doctor’s visits each year at their enrolled practice,” Labour health spokesperson Ayesha Verrall said.
“This election is make-or-break for our health system. Under a Labour Government, all someone will need to see their doctor is a Medicard, not their credit card,” she said.
Labour has been widely expected to take a new tax policy into the election for months. Hipkins has now pressed go on the controversial policy that Labour first took to the 2011 election and which has been kicking around in politics ever since.
Finance Minister Nicola Willis lashed the proposal.
“Labour’s tax grab would put New Zealand's economic recovery at risk. It's a tax on savings, investment and growth. The complete opposite of what our economy needs right now,” she said.
“Labour’s proposed capital gains tax would load more costs on businesses, investors and savers and act as a handbrake on our economy.
“Every business needs somewhere to work from and many businesses depend on some form of commercial property - be it the shop building they own or the premise they work from. By levelling a new tax on land and buildings, Labour has effectively committed to a tax on businesses small and large - from the corner dairy to the local factory.”
But Labour’s pitch will be to connect the tax to cheaper GP visits.
“One in six New Zealanders cannot afford to visit their doctor when they are sick. Some doctors' fees are heading towards $100 a visit. That hasn’t happened by accident. It is a direct result of Christopher Luxon’s cuts to healthcare and tax breaks for tobacco companies and property speculators,” Hipkins said in the statement.
A spokesperson for the prime minister has been contacted for comment.