ACT's Taxation Policy
ACT proposes significant income tax cuts funded by reducing government spending, a flat tax of 17.5% for income under $70,000, and abolishing inheritance tax. They oppose all new taxes including capital gains and wealth taxes, and want to simplify the tax system.
In simple terms
Cut income taxes significantly, create a simpler flatter tax system, oppose any new taxes on savings or investments, and fund it all by cutting government spending.
Impact to New Zealanders
Lower-income workers gain modest tax relief, but government cuts to services like community health clinics and local libraries hit those same communities hardest.
Wealthy investors thrive tax-free, but delayed maintenance on roads, schools, and hospitals creates expensive emergency repairs that eventually cost taxpayers more overall.
New Zealand's workforce becomes less skilled as universities and vocational training shrink, making workers less competitive globally and reducing future earning potential across all income levels.
Green Party's Taxation Policy
The Green Party proposes a Super-Wealth Tax of 2.5% on net assets over $10 million (excluding the family home), a capital gains tax on investment properties, a corporate tax rate increase to 33%, removing GST from fresh food, and using revenue to fund public services and income support.
In simple terms
Tax the very wealthy on their total assets, tax profits from selling investment properties, increase company tax, and remove GST from fresh food.
Impact to New Zealanders
Wealthy individuals and investment property sellers face higher tax bills, reducing investment capital available for new housing developments and business expansion.
Reduced private investment slows construction; house prices may rise faster in regions relying on private development, offsetting gains for lower-income food shoppers.
New Zealand's tax base becomes more dependent on wealth taxes; if wealthy individuals relocate overseas, the burden shifts onto middle-income earners and workers.
Labour's Taxation Policy
Labour introduced a 39% top income tax rate for income over $180,000 and maintains progressive income tax. They oppose a broad capital gains tax, having ruled it out during their tenure, but support closing tax loopholes and ensuring multinationals pay their fair share.
In simple terms
Keep a high tax rate for very high earners, make sure large corporations pay tax in New Zealand, and close loopholes used to avoid tax.
Impact to New Zealanders
Government revenue increases, funding more public services, but some high earners and businesses relocate headquarters overseas, reducing local job creation.
Tech startups and innovative companies struggle to attract investor talent without competitive salaries, while accounting firms grow larger helping remaining businesses navigate compliance costs.
New Zealand's economy may rely more on stable, lower-innovation sectors; workers benefit from better public services but face fewer high-wage career pathways than comparable countries.
National's Taxation Policy
National has introduced income tax threshold adjustments to compensate for bracket creep, increased the Independent Earner Tax Credit, and provided Working for Families top-ups. They oppose a capital gains tax and wealth tax, and aim to return to surplus through spending restraint.
In simple terms
Adjust tax brackets so workers keep more of their pay rise, help working families with tax credits, and oppose new taxes on wealth or investment gains.
Impact to New Zealanders
Workers earning $50k–$120k keep extra cash monthly, but government has less revenue for hospitals, schools, and roads without spending cuts.
Wealthy investors buy more property and shares tax-free, driving up house prices faster than wage earners can save for deposits.
Lower-income Kiwis fall further behind homeownership while public services deteriorate unless taxes rise elsewhere or debt balloons significantly.
NZ First's Taxation Policy
NZ First opposes capital gains and wealth taxes, supports adjusting income tax thresholds to offset inflation, advocates for superannuation to be tax-free, and wants to remove GST from rates and insurance. They also support tax incentives for regional businesses.
In simple terms
Stop new taxes on savings and investment, adjust tax brackets for inflation, make superannuation tax-free, and remove GST from rates and insurance.
Impact to New Zealanders
Government loses tax revenue from savings/investment and GST on rates, forcing cuts to public services or higher income taxes on wage earners.
Wealthy investors gain more capital to reinvest, widening wealth inequality as lower-income earners can't access these tax breaks and face service reductions.
Reduced infrastructure funding stifles long-term economic growth, potentially offsetting initial investment gains and leaving younger generations with aging assets.
Te Pāti Māori's Taxation Policy
Te Pāti Māori supports a comprehensive capital gains tax, a wealth tax on high net worth individuals, removing GST from food and basic necessities, and using revenue to fund universal basic income and free public services. They argue the current tax system perpetuates inequality.
In simple terms
Tax investment profits and large fortunes, remove GST from food and essentials, and use the money to pay for a universal income and free services for all.
Impact to New Zealanders
Investment returns fall as capital moves offshore; KiwiSaver and Kiwi homeowners' retirement funds shrink before universal income kicks in.
Businesses reduce hiring and wages stagnate as tax burden shifts; universal income rises but buys less as inflation follows reduced productivity.
New Zealand's tax base erodes as high earners and companies relocate; future governments must cut services or raise taxes on middle earners to sustain programme.
TOP's Taxation Policy
TOP proposes a Land Value Tax (LVT) of 1.75% on all land to replace the current property tax system, a Citizen's Income of $370 per week funded partly by the LVT, three income tax brackets (28% up to $70k, 34% up to $180k, 39% above), and a KiwiSaver 2.0 compulsory employer contribution of 6%. The LVT targets land speculation rather than productive activity and is designed to be revenue-neutral when combined with reduced income taxes for most earners.
In simple terms
Tax land instead of income — a 1.75% annual charge on all land values funds a $370/week Citizen's Income for every adult, while income tax is simplified into three brackets. Most workers end up paying less tax overall.
Impact to New Zealanders
Landowners start selling property to avoid the 1.75% annual charge, flooding the market and crashing house prices—renters benefit, but existing homeowners lose equity.
Local councils lose rates revenue as land values drop, forcing cuts to libraries, pools, and roading maintenance in lower-income areas that depend most on these services.
Foreign investors and developers dominate land purchases since they're less sensitive to price changes, slowly shifting property ownership away from New Zealand families to overseas corporations.