Scoop has an Ethical Paywall
License needed for work use Register

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Labour’s promise: We’ll own our own future

Labour’s promise: We’ll own our own future

Labour has today revealed a bold plan to stop our valuable assets being flogged off overseas, give hard-working Kiwis a tax break, pay off the country’s ballooning debt and grow our economy.

Labour leader Phil Goff said: “New Zealand is drifting without a plan. Debt is out of control. The economy is not performing. Record numbers of New Zealanders are leaving permanently.

“We are fighting for the future of our country. It’s that simple. It’s time to show courage and take action,” said Phil Goff.

“Labour’s plan charts a course for a stronger, more resilient economy and will allow us to keep our valuable assets for the benefit of future generations. We will make the hard decisions needed to secure a prosperous, long-term future for all New Zealanders.

“Our policies will result in investment shifting from speculation on property to the productive sector. This will lead to more jobs with better pay, give the economy a much-needed boost so that we can pay our way in the world and make it easier for more Kiwis to buy their first homes.

“We need to build an economy that has the capacity to create safety nets to pay for future shocks, like the devastating Canterbury earthquakes.

“These changes won’t be easy and some people won’t like them. But it’s the right thing to do,” said Phil Goff.

Labour’s policy includes the introduction of a Capital Gains Tax, which is already in use in nearly all developed countries, including Australia, the United Kingdom and United States.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“It’s not fair for people to have to pay tax on every dollar they earn from wages or interest on their money in the bank while others are making huge profits buying and selling assets without paying any tax,” said Phil Goff.

“This tax switch is about creating a fairer tax system. In fact, under Labour, the overwhelming majority of Kiwis will end up paying less tax not more.”

The key points of the proposed capital gains tax are that:

Most New Zealanders will not pay the tax. It will not apply to the family home. Those who do pay it will still get to keep 85% of any gain they make because the tax rate will be set at a flat 15%. It’s predicted the tax will raise $26 billion over 15 years that can be used to pay off debt, cut taxes for most New Zealanders, save our assets and prepare for the mounting cost of our aging population. Real estate in the Canterbury CERA zone will be exempt for at least five years to give earthquake-affected residents some relief. Labour will also put the top tax rate back up to 39 cents for income earned over $150,000. That’s likely to affect around 2% of the country’s top earners.

“This is about everyone paying their fair share – nothing more, nothing less. We won’t be borrowing billions of dollars to give tax cuts to the wealthy like the National Party is. Instead, we will be asking those earning the most to pay just a little more, to help meet costs like the Canterbury earthquakes. “We know that many middle and low-income Kiwis are finding it hard to make ends meet. We’ll ease their burden, by making the first $5000 they earn tax free. That’s $500 extra a year in the pocket of every New Zealander.

“We’ll also take all GST off fresh fruit and vegetables so families can afford healthy food.

“Labour has a plan. National doesn’t. Its only idea is to sell our assets off to big corporates and foreign buyers. That is incredibly short-sighted and will see New Zealanders become tenants in their own land. For goodness sake, if you’re in a hole, why would you sell off the ladder?!

“New Zealanders have said loud and clear that our assets should not be put on the block. We need to own our own future, to hold it and safeguard it for future generations. Putting our heritage up for auction is not the solution.

“For nearly three years, National has been content to tinker with the economy when bold action is needed. They’ve had their chance. They’ve failed.

“The time for tinkering is over. Labour has a plan and the courage to make it work so that New Zealand can become a better place to live for all Kiwis.

Labour's Fairer Tax System explained (pdf)


© Scoop Media

Advertisement - scroll to continue reading
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Government's Assault On Maori

This isn’t news, but the National-led coalition is mounting a sustained assault on Treaty rights and obligations. Even so, Christopher Luxon has described yesterday’s nationwide protests by Maori as “pretty unfair.” Poor thing. In the NZ Herald, Audrey Young has compiled a useful list of the many, many ways that Luxon plans to roll back the progress made here over the past 40 years in race relations... More

Public Housing Futures: Christmas Comes Early For Landlords

New CTU analysis of the National & ACT coalition agreement has shown the cost of returning interest deductibility to landlords is an extra $900M on top of National’s original proposal. This is because it is going to be implemented earlier and faster, including retrospective rebates from April 2023. More

Green Party: Petition To Save Oil & Gas Ban

“The new Government’s plan to expand oil and gas exploration is as dangerous as it is unscientific. Whatever you think about the new government, there is simply no mandate to trash the climate. We need to come together to stop them,” says James Shaw. More

PSA: MFAT Must Reverse Decision To Remove Te Reo

MFAT's decision to remove te reo from correspondence before new Ministers are sworn in risks undermining the important progress the public sector has made in honouring te Tiriti. "We are very disappointed in what is a backward decision - it simply seems to be a Ministry bowing to the racist rhetoric we heard on the election campaign trail," says Marcia Puru. More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.