Hi Friend,

I’ve just been briefed by the policy team about Labour’s so-called "targeted" Capital Gains Tax announced this morning.

At first glance, it might look mild. But as every good accountant knows – the devil’s in the detail. And this one’s a real shocker.

Nicola Willis has rightly described Chris Hipkins's announcement as "A dangerous policy that puts New Zealand's economy at risk." 

The Taxpayers' Union has no option but to fight it.

, we need your support to expose what Labour are trying to do and to point out the major flaws and unfairness the media won't.

No country ever got richer by taxing itself harder

Since 2017, Government spending has ballooned from 27.7 percent of the economy to 32.5 percent today. That’s $65.4 billion in extra spending per year – or $26,089 per household more, this year alone.

But instead of tightening its belt, Labour wants to reach even deeper into your pocket.

If Chris Hipkins truly cared about productivity, he'd be cutting waste, not inventing new taxes on inflation.

Make no mistake, Labour’s proposal isn’t about ‘fairness’ or ‘rebalancing’, it’s a tax on patience, on thrift, and on every New Zealander trying to build something for their future.

Taxing inflation is fundamentally unfair

Every extra dollar of inflation means a bigger “paper gain” on property, and a bigger tax bill for Hipkins to spend. It’s cynical, it’s manipulative, and it punishes every Kiwi who’s worked hard to save or invest for the long term.

If you think this tax won’t hit you – Chris Hipkins has a bridge to sell you! 

Almost every Kiwi who owns shares in a New Zealand corporate (including through KiwiSaver) owns property for a business and will therefore feel the pain.

And it’s not just the big end of town. The local garage, the fish-and-chip shop, or the family manufacturer sells up or moves to expand – Hipkins will take 28 percent of the gain, even if the only ‘gain’ is inflation.

You read that right, Friend, Chris Hipkins’s proposed new tax taxes inflationary gains as if they were profit!

But it’s even worse than that. 

• If you’ve got a home office or a workshop on your lifestyle block – Hipkins is coming for you with a 28% capital gains tax.

• If you head overseas or move into a rest home and it takes a while to sell your house – Hipkins is coming for you with a 28% capital gains tax.

• If your family owns a bach and changes who’s on the title – Hipkins is coming for you with a 28% capital gains tax — even if no money changes hands!

As you can see, Friend, this isn’t just a capital gains tax or a “Bach Tax”. It’s a Back-door Tax on every KiwiSaver.

An unprincipled tax grab designed to fool farmers into a false sense of security

Take farmers for example: Labour say ‘productive farmland’ is excluded from the new regime, but all other industrial and productive land is hit by the 28% tax! So the land underneath the sawmill, or under the engineering company is definitely taxed. So too might be the packhouse, the hothouse, and even the cowshed! Labour are being very sneaky in their failure to say where they draw the line.

Meanwhile, Labour and Chris Hipkins say this tax is about promoting investment! Yeah right...

Labour’s Capital Gains Tax makes New Zealand poorer

The Taxpayers’ Union has called this out for what it is: “A tax on inflation disguised as fairness.”

This policy punishes saving, freezes investment, and drives capital offshore. It’s politics dressed up as productivity.

Once this so-called “small, targeted tax” exists, history tells us it will grow — to the family home, inheritances, even a death duty. Today’s “Lite CGT” becomes tomorrow’s “Full Cream Capital Gains.”

Ensure the Taxpayers’ Union stops Labour — again

The team at the Taxpayers’ Union have stopped a Capital Gains Tax before and we can stop it again – but only if you back us.

Your support funds the hard-hitting research, the advertising, and the nationwide campaign to expose this Unfair Tax for what it is.

If we don’t act now, Labour will sneak this past before voters even realise what’s hit them.

👉 Please chip-in – $20, $50, or even $150 – to ensure the Taxpayers’ Union can properly fight back.

> Click here to make a secure donation <

Every dollar will go toward ensuring Kiwis know the truth: you can’t tax a country into prosperity.

We must step up and push back against Hipkins and his friends in the media promoting new taxes. If they hoodwink the public, even more young Kiwis will head offshore. 

That's why I'm asking for your support.

Jordan Williams Executive Director New Zealand Taxpayers’ Union

ps. Without a strong voice pointing out the flaws in Labour’s policy, the media will suck up the false claims from Hipkins and Labour that “most” people won’t be affected by the new tax. That’s why we need you to rush your support to the Taxpayers’ Union today, so the team can get to work.