New taxes? The policies behind National’s election warning

National is asking voters to choose between its promise of “no new taxes” and the prospect of nine under a Labour-led government. But the figure brings together proposals from different parties, disputed descriptions of policy changes and measures Labour says it would not support.

That distinction matters as tax becomes a central issue in the election campaign. A policy proposed by a potential coalition partner is not automatically a Labour commitment, and a change that increases someone’s tax bill is not necessarily a new tax.

National’s published position groups Labour with the Greens, Te Pāti Māori and Opportunity. Its argument is that coalition negotiations could open the door to taxes Labour has rejected during the campaign.

Labour disputes that framing, pointing to its own policies and the limits leader Chris Hipkins has placed on other parties’ proposals.

What Labour is proposing

Labour’s clearest new tax commitment is a targeted capital gains tax on residential investment and commercial property.

Its published policy proposes a 28 percent tax on qualifying gains from 1 July 2027. The family home and farms would be exempt, along with KiwiSaver, shares, business assets, inheritances and gifts.

Labour says the revenue would be reserved for healthcare, including its promise of three free doctor’s visits each year.

For someone selling a qualifying investment property, the proposed tax would apply to gains covered by the policy, rather than the entire sale price. It would not retrospectively tax increases in value before the starting date.

That is a substantial policy difference between the two major parties. National opposes introducing a capital gains tax.

Why business tax is also in the argument

Another dispute concerns Labour’s plan to replace the Government’s Investment Boost scheme with support targeted at smaller businesses.

Investment Boost allows businesses to immediately deduct 20 percent of the cost of qualifying new assets, alongside the applicable depreciation deductions.

Removing that benefit would leave some businesses paying more tax than they would under the current scheme. National describes the change as a business tax.

Labour describes it as redirecting support. Its small-business package includes a $10,000 immediate asset write-off and an increase in the GST registration threshold to $80,000.

The practical question for business owners is therefore which deductions they would gain or lose under each party’s policy. Describing the change as a new tax does not explain those differences.

Other parties have their own plans

The broader list behind National’s warning includes proposals associated with the Greens and Opportunity, rather than Labour alone.

The Greens have proposed a wealth tax, a tax covering large inheritances and gifts, a higher top income tax rate and changes to the treatment of residential property investment.

Opportunity proposes an annual land value tax as part of a wider overhaul that would help fund a citizen’s income.

Those parties argue their packages would redistribute the tax burden and fund benefits or tax reductions elsewhere. National argues they would discourage investment and increase costs.

Hipkins has publicly rejected Opportunity’s tax policy and the Greens’ wealth and land tax proposals. Those positions cannot reasonably be presented as agreed Labour policies.

They could nevertheless become subjects of negotiation if smaller parties are needed to form a government. National’s warning rests on that possibility, rather than a signed agreement to introduce every measure.

What voters should check

The “nine new taxes” slogan is a campaign claim about a possible governing arrangement. It is not a list of nine taxes Labour has committed to enact.

National’s own promise also needs careful reading. “No new taxes” does not necessarily mean existing taxes, levies or charges cannot increase.

For households and businesses comparing the parties, the useful questions are specific: who would pay, what would be taxed, which exemptions would apply and when would a change begin?

Those details will determine the effect on people’s finances. The campaign slogans alone will not.

Reporting basis: National’s statement, Labour’s published policies and 1News’ examination of the nine-tax claim. The specific media exchange pictured could not be independently verified.