Summarised by Centrist
Labour has unveiled a capital gains tax that taxes profits on commercial and residential property at 28 percent while exempting the family home and farms. But there’s a catch.
How it all works will not be revealed until after voting day.
RNZ reports the policy hinges on a 1 July 2027 “valuation day,” with owners given five years to establish a baseline.
But there are a lot of blanks. What valuations will count. Who pays. Can owners dispute them. What if no valuation is lodged in time. As RNZ put it, “The public will not find out until after the election how Labour would handle the thousands of property valuations needed for its capital gains tax policy.”
Labour’s finance spokesperson Barbara Edmonds confirmed the detail will be settled later if Labour wins. “Inland Revenue will provide guidance, and as with any tax policy there will be a thorough policy process to make sure the rules are workable and effective once in government.” Inland Revenue told RNZ it would be “inappropriate to provide policy analysis for an opposition party’s policy,” adding that approaches used for the bright line test are “not relevant as that test does not use a Valuation Day.”
Image:Alpha Photo
