Labour says Capital Gains tax proposal will ease health costs for Pacific families

Labour’s Finance Spokesperson Barbara Edmonds says the party’s proposed capital gains tax is designed with Pacific and Māori families in mind.

Speaking with William Terite on Pacific Mornings, Edmonds says cost is one of the biggest barriers stopping Pacific families from seeing a GP. A new universal MediCard, funded by the tax, will help address access to health services.

Labour’s proposed 28 per cent capital gains tax would take effect from July 2027 and apply only to future property sales, with family homes and farms exempt.

Labour says the $700 million revenue raised from the tax would fund three free GP visits a year for every New Zealander.

“We know our Pacific families and our Māori families are the ones with high needs, but cost is a major barrier for them to be able to see their GP,” Edmonds says.

“This just makes it easier for everyone, particularly our Pacific families, who don’t have that high uptake access to GPs because they have barriers, which are costs.”

Watch Barbara Edmonds' full interview below.

But National’s Finance Spokesperson Nicola Willis says Labour’s MediCard plan is flawed.

“The GP policy is poorly thought out and will simply clog the system as Labour prioritises free GP visits for millionaires, paid for by a tax on people’s savings. It would result in longer doctor wait times for every single Kiwi.

“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,” Willis says.

ACT Leader David Seymour says under the Labour plan, New Zealanders will be taxed twice on the same thing.

“First, you pay tax on the income an asset earns. Then you pay again when you sell it, even though that value comes from the same income. That’s double taxation.”

Seymour says Labour is wrong to claim the tax will fund free GP visits because the tax “wouldn’t raise a cent until years after its proposed start date. It’s marketing, not policy”.

National’s Finance Spokesperson Nicola Willis says Labour’s MediCard plan is flawed. Photo/National Party..

He also questions the idea of universal free care.

“People who can make a contribution (to healthcare) should make one. There are already free and subsidised GP visits for low-income and young New Zealanders.”

But Edmonds is adamant it is a “fairer, more productive” approach to tax that will apply only to commercial and residential investment property, not family homes, farms, inheritances, or KiwiSaver.

“Nine in 10 New Zealanders won’t pay any tax on the property they own. We’re going to ring-fence the money that’s raised from this tax and it’s going to go towards health. The first cab off the rank with the MediCard will be the three free doctor’s visits.”

She says every dollar spent in primary care saves ten in the wider health system.

“We want people to be able to access their GP … so by preventing your illness from getting worse … the country saves money in the long run.”

ACT Leader David Seymour says under the Labour plan, New Zealanders will be taxed twice on the same thing. Photo/ACT NZ

Edmonds rejects claims that the tax punishes success.

“This tax policy is designed to encourage investment in the productive economy. At the moment, our economy’s held up by the primary industries and the housing market. We’re saying we’re levelling the playing field so that you don’t treat land more advantageous than you would buying shares or investing in a business.”

She acknowledges there are different views on whether it will affect rents, but believes it won’t harm Pacific renters.

“Overall, we believe it brings downward pressure on rents. The major drivers are supply and wages, that’s what we really need to focus on.”

“This is about helping our families be able to access their GP and removing costs as a barrier. It’s a good policy and it’s about fairness, productivity and opportunity for our kids here in New Zealand.”