A capital gains tax on everything but the family home just makes sense, Green Party leader James Shaw says.
The party has backed the idea for more than a decade but Mr Shaw says now is the time to get on with it.
“New Zealand is one of the only countries in the developed world to not tax capital gains consistently, which has helped to fuel growing inequality between those who don’t own a home and those who now own 10,” he said today.
“A capital gains tax will make houses more affordable for young buyers who are currently priced out of the market, while property speculators will lose the current tax advantages of investing in and sitting on property.”
Labour has not ruled out introducing a capital gains tax in its first term, but leader Jacinda Ardern said again today that it is not the party’s policy right now.
“I am happy to rule out the family home because that is part of what Labour’s values on this have always been. We’ve consistently said that we do not believe that any future possible CGT would apply to the family home,” she told RNZ.
“Beyond that, I am leaving it to a group of experts to work through what we need to do more broadly when it comes to our taxation in New Zealand.”
Ms Ardern did promise to tell voters her position on personal income tax changes after the pre-election fiscal update where the Government opens up its books tomorrow.
National introduced a bright-line test two years ago which requires anyone selling a property within two years pay tax on capital gains.
It does not apply to family homes.