Pitched as a way to make the wealthy "pay their fair share" while giving every New Zealander three free doctor's visits a year, Labour's capital gains tax is the party's flagship 2026 election policy.

The Policy: Labour Capital Gains Tax — October 2025 →

What it does:

• Labour leader Chris Hipkins unveiled the policy on 28 October 2025, after details were leaked, setting a 28% capital gains tax aligned with the company tax rate on investment and commercial property, applying only to gains made after 1 July 2027 and not retrospectively.
• The party says the family home, farms, KiwiSaver, shares, business assets, inheritances and personal items are all excluded, and that "nine out of 10 New Zealanders won't pay tax on the property they own".
• Labour's costings project the tax raising about $100 million in 2027/28, rising to $385m, then $965m, and reaching $1.35 billion by the end of the forecast period — an average near $700m a year.
• Every dollar is earmarked for health, funding three free GP or nurse visits per person per year via a new "Medicard" issued at birth or on gaining residency; Labour put the health package at around $550 million.
• Health spokesperson Dr Ayesha Verrall framed the need bluntly, saying "one in six New Zealanders cannot afford to visit their doctor" when sick.

The result: As an unlegislated opposition policy, this remains a pledge contingent on Labour winning the 2026 election and passing law thereafter. Note on a charged topic: tax design is contested, so positions here are attributed, not endorsed. Labour argues the CGT is "progressive" and modelled on the 2019 Tax Working Group base with updated assumptions. An RNZ-Reid Research poll found 43% supported a CGT on investment property, with 36% against. Critics are pointed: Finance Minister Nicola Willis called it "a terrible idea" and a "handbrake" on the economy that would hit commercial property "from a corner dairy to a manufacturing facility"; Prime Minister Christopher Luxon called it "very uncooked"; and Deputy PM David Seymour (ACT) dismissed the funding link as "marketing", noting the tax raises little for years while Labour would have to fund free visits immediately. NZ First's Winston Peters called it a "ham-fisted" announcement, while the Greens' Chlöe Swarbrick attacked it from the left as "watered down".

The impacts to watch:

• Workforce capacity: GP leaders welcomed the intent but doubt the system can cope. Royal NZ College of GPs president Dr Luke Bradford and General Practice Owners Association chair Dr Angus Chambers both flagged a "big question mark" over capacity; Verrall counters that productivity gains, AI transcription and triage would free up around five million appointments.
• Demand surge: healthcare commentator Cecilia Robinson argues the plan would add an estimated 4.5 million extra GP appointments a year, with wait times rationing access if supply does not grow.
• Funding mismatch: because CGT revenue ramps slowly, the early-year health costs may exceed the tax take, raising the question of how the gap is bridged.
• KiwiSaver and business: Willis argues some KiwiSaver funds and commercial premises would be caught, a claim Labour disputes; the precise reach of the tax base is still to be detailed.