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The Labour Party has unveiled plans for a new Medicard offering every New Zealander three free doctor visits a year, funded by a targeted capital gains tax on property sales’ profits. Under the proposal, a 28 per cent tax would apply to profits made after July 1, 2027, from the sale of commercial or residential property, excluding family homes. Labour believes the move will ensure those profiting from property speculation pay their fair share, while ordinary Kiwis benefit through free access to primary healthcare. Labour Party leader Chris Hipkins says the targeted tax will “level the playing field” for businesses and fund tangible health benefits. “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.” Exemptions would include family homes, farms, KiwiSaver, shares, business assets, inheritances, gifts and personal items, he says. Labour says nine out of 10 New Zealanders will not pay any new tax under the plan. The party’s health spokesperson, Ayesha Verrall, says the initiative responds to rising healthcare costs. “One in six New Zealanders cannot afford to visit their doctor when they are sick. “Under a Labour Government, all someone will need to see their doctor is a Medicard, not their credit card.” The proposed digital-and-physical Medicard would be issued at birth or upon residency and integrate with existing GP systems. National Party Minister of Finance, Nicola Willis, criticises the proposal, calling it “a tax on savings, investment and growth”. “Labour’s new capital gains tax would hit businesses and savers just as the economy is getting back on its feet,” she says. “It’s a recipe for fewer jobs, lower incomes and less investment. “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,” Willis says. “This is nothing but a tax on the savings and investment our economy desperately needs. “Many Kiwis’ retirements savings are tied to their small business, rental property or KiwiSaver investments in New Zealand businesses. “Taxes on all those things would go up under Labour. “Kiwis need confidence to invest, hire, and plan for the future. This policy would do the opposite,” Willis says. “It’s a recipe for fewer jobs, lower incomes and less savings. “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.” Willis confirms: “National will not introduce a capital gains tax.” Meanwhile, the New Zealand Council of Trade Unions Te Kauae Kaimahi says it welcomes “the much-needed tax reform proposed by the Labour Party”. “New Zealand needs a more equitable taxation system. A capital gains tax (CGT) has been an essential missing part of that system,” says NZCTU president Richard Wagstaff. “Our current tax system advantages those who speculate in property over those who go to work every day. “It reduces the investment available to foster a broader based, more sustainable economy. “Using the proceeds from a CGT to pay for additional healthcare will benefit working people, their whānau, and the broader economy. “No one benefits when people can’t afford to go to a GP. Funding healthcare properly has been a key concern for the union movement,” Wagstaff says.
