Election 2026: Where Do The Parties Stand On Tax?
With the 2026 General Election approaching, tax policy is a major point of difference between New Zealand’s political parties. At CA ANZ’s 2026 General Election: Political Parties’ Tax Policies event, representatives from five parliamentary parties discussed fiscal policy, personal tax, business investment, capital gains and wealth taxes.
Returning the Government’s accounts to surplus
ACT and National argued that New Zealand already collects enough tax and that the focus should be on controlling spending, improving productivity and reducing waste. ACT leader David Seymour said the Budget could be balanced within existing revenue, including by reviewing government spending and entitlements. National’s Nancy Lu said the Government expects to return to surplus in 2028/29. Labour revenue spokesperson Deborah Russell said Labour would aim to return OBEGAL to surplus by 2029/30, while also investing in public services and productivity. Labour’s plans include a targeted capital gains tax and a New Zealand Future Fund.
Personal tax
The parties also differ on how to address income tax and bracket creep.
Business investment
National supports Investment Boost, which provides incentives for businesses investing in equipment and other fixed assets.
ACT favours a simpler, broad-based, low-rate tax system with predictable rules and low compliance costs.
Labour would end Investment Boost and introduce an immediate write-off for qualifying assets worth up to $10,000 for businesses with turnover below $10 million. New Zealand First is considering a lower 25% company tax rate for SMEs with turnover below $30 million, as well as a possible 20% rate for exporters entering new markets or launching new products.
Returning the Government’s accounts to surplus
ACT and National argued that New Zealand already collects enough tax and that the focus should be on controlling spending, improving productivity and reducing waste. ACT leader David Seymour said the Budget could be balanced within existing revenue, including by reviewing government spending and entitlements. National’s Nancy Lu said the Government expects to return to surplus in 2028/29. Labour revenue spokesperson Deborah Russell said Labour would aim to return OBEGAL to surplus by 2029/30, while also investing in public services and productivity. Labour’s plans include a targeted capital gains tax and a New Zealand Future Fund.
Personal tax
The parties also differ on how to address income tax and bracket creep.
- Greens: A $10,000 tax-free threshold, with a small increase in tax for the highest earners.
- New Zealand First: A $14,000 tax-free threshold and inflation-adjusted tax brackets.
- ACT: Lower top tax rates and a flatter tax structure rather than adjusting thresholds for inflation.
- National: Targeted support for families and businesses rather than broad tax cuts.
Business investment
National supports Investment Boost, which provides incentives for businesses investing in equipment and other fixed assets.
ACT favours a simpler, broad-based, low-rate tax system with predictable rules and low compliance costs.
Labour would end Investment Boost and introduce an immediate write-off for qualifying assets worth up to $10,000 for businesses with turnover below $10 million. New Zealand First is considering a lower 25% company tax rate for SMEs with turnover below $30 million, as well as a possible 20% rate for exporters entering new markets or launching new products.
Labour’s proposed capital gains tax
Labour proposes a targeted capital gains tax on property, including residential investment and commercial property. Productive assets such as businesses and farms would be excluded. The proposed valuation date is 1 July 2027. A rating valuation could be used if taxpayers did not obtain their own valuation.
Labour has also considered using the higher of the original purchase price or the valuation at the start date to reduce the risk of taxing gains that existed only on paper.
Greens’ proposed wealth tax
The Greens propose an annual 2.5% tax on net assets above $10 million, excluding the family home. The Greens estimate about 0.3% of New Zealanders would be affected. Genter said the system could be designed to prevent double taxation where the wealth tax overlaps with other taxes, such as a bright-line test.
What does it mean?
The parties differ on both the level of taxation and the role tax should play in the economy. ACT and National emphasise spending restraint, productivity and targeted support. Labour proposes targeted new taxation alongside investment in public services. The Greens favour greater taxation of high incomes and wealth, while New Zealand First is proposing changes to tax-free thresholds and targeted business incentives.
For tax practitioners and businesses, the practical design, certainty and long-term sustainability of any changes will be important considerations after the election.
Labour proposes a targeted capital gains tax on property, including residential investment and commercial property. Productive assets such as businesses and farms would be excluded. The proposed valuation date is 1 July 2027. A rating valuation could be used if taxpayers did not obtain their own valuation.
Labour has also considered using the higher of the original purchase price or the valuation at the start date to reduce the risk of taxing gains that existed only on paper.
Greens’ proposed wealth tax
The Greens propose an annual 2.5% tax on net assets above $10 million, excluding the family home. The Greens estimate about 0.3% of New Zealanders would be affected. Genter said the system could be designed to prevent double taxation where the wealth tax overlaps with other taxes, such as a bright-line test.
What does it mean?
The parties differ on both the level of taxation and the role tax should play in the economy. ACT and National emphasise spending restraint, productivity and targeted support. Labour proposes targeted new taxation alongside investment in public services. The Greens favour greater taxation of high incomes and wealth, while New Zealand First is proposing changes to tax-free thresholds and targeted business incentives.
For tax practitioners and businesses, the practical design, certainty and long-term sustainability of any changes will be important considerations after the election.
Source: Chartered Accountants Austrailia and New Zealand Election 2026: Where do the parties stand on tax
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