With the 2026 General Election approaching, tax policy is again shaping up as a key area of political debate. At CA ANZ’s 2026 General Election: Political Parties’ Tax Policies event, representatives from five parliamentary parties debated some of the key tax questions facing New Zealand, from returning the Government’s books to surplus and addressing bracket creep, to encouraging business investment and the potential introduction of capital gains and wealth taxes.

Moderated by John Cuthbertson FCA, NZ Tax & Financial Services Leader at CA ANZ, the discussion highlighted not only where the parties differ, but also the choices and trade-offs behind their tax policies.

How would the parties return the Government’s accounts to surplus?

With New Zealand facing an ongoing fiscal deficit, Cuthbertson asked how parties would bring the Government’s books back into surplus.

Hon David Seymour, ACT Party leader, questioned whether insufficient tax revenue was the core problem. His focus was instead on improving public-sector productivity and getting better value from existing government revenue. On the spending side, he pointed to entitlement issues, including the generosity or timing of some payments, as well as government organisation and governance. He argued that the Budget could be balanced within the existing revenue envelope rather than through additional taxation.

Nancy Lu MP CA, National Party, took a similar position, saying New Zealand already collects sufficient revenue and should focus on reducing wasteful spending, improving productivity and using government resources more effectively. She said the Government would return to surplus in 2028/29.

Hon Dr Deborah Russell, Labour Party revenue spokesperson, said Labour intended to return OBEGAL to surplus by 2029/30. She argued that revenue also needs to be considered in the context of funding public services and outlined Labour’s broader focus on productivity and investment. Labour’s fiscal approach includes its proposed targeted capital gains tax, while Russell also pointed to the New Zealand Future Fund as part of Labour’s strategy to lift productivity and grow the country’s wealth.

What could change for individual taxpayers?

Hon Julie Anne Genter, Green Party, said the Greens were proposing a $10,000 tax-free threshold, which would reduce income tax for people on lower incomes, alongside a slight increase in tax for those on the highest incomes. 

Dr David Wilson MP, New Zealand First, outlined a proposal to make the first $14,000 of income tax-free and adjust income tax brackets for inflation. 

ACT took a different approach to bracket creep. Seymour said he did not favour adjusting tax thresholds. Instead, he favoured reducing the top brackets and flattening the rate structure as bracket creep generated additional revenue. He also criticised the 39% top personal income tax rate, noting that it raised around $500 million and arguing that it reflected other policy objectives rather than efficient revenue raising. 

National emphasised targeted assistance rather than blanket tax adjustments. Lu pointed to measures targeted towards families and businesses and questioned whether broad tax changes should also benefit people who did not need additional support.

How would tax policy support business investment and productivity?

Investment incentives generated significant discussion.

Lu strongly backed Investment Boost, saying it was designed to encourage businesses to invest in fixed assets, new equipment and production lines and ultimately lift productivity. She also emphasised the importance of policy predictability so businesses could make long-term investment decisions with confidence.

Seymour similarly stressed broad-based, low-rate taxation, simplicity, predictability and low compliance costs. He argued that taxation should primarily raise revenue for public goods and social insurance rather than be used to favour particular industries or influence particular markets.

Russell said Labour would not continue Investment Boost. Instead, she outlined Labour’s proposed low-value asset write-off for smaller businesses, which would allow eligible businesses with turnover below $10 million to immediately write off qualifying assets costing up to $10,000. 

Wilson outlined several more targeted ideas from New Zealand First. He said the party would explore reducing the company tax rate for SMEs with turnover below $30 million from 28% to 25%. He also discussed a potential 20% tax rate for exporters entering new markets or introducing new products, while acknowledging that the proposal would require further consideration.

What would Labour’s proposed capital gains tax look like?

Russell described Labour’s proposal as a targeted capital gains tax applying to property, including residential investment and commercial property, rather than productive assets such as businesses and farms. She said the revenue would help fund Labour’s healthcare commitments.

Asked about practical implementation, Russell confirmed a 1 July 2027 valuation date. Taxpayers would not necessarily need to obtain a valuation on that exact date, with time available to establish the value. She said a rating valuation could be used as a fallback, with taxpayers able to obtain a registered valuation if preferred.

Cuthbertson also raised the position of properties that may be worth less on valuation day than their original purchase price. Russell referred to the approach considered by the 2018 Tax Working Group, under which the higher of the property's original cost or its valuation at the relevant date could be used to address potential “paper gains”.

How would the Greens’ wealth tax work?

Cuthbertson described the proposal as an annual tax on net assets excluding the family home, with a 2.5% rate applying above $10 million.

Genter said the Greens had considered behavioural responses and tax avoidance in estimating revenue from the proposal. She argued that many assets, particularly land and property, could not simply be shifted overseas.

Asked about interaction between the wealth tax and the Greens’ proposed return to a 10-year bright-line test, Cuthbertson raised the potential for both regimes to apply in the year a property was sold.  Genter said the rules could be designed to avoid double taxation. She said the Greens estimated only around 0.3% of New Zealanders would be subject to the proposed wealth tax, with detailed issues to be worked through the normal legislative and consultation process.

What should tax practitioners take from the debate?

The parties remain divided not only over individual tax measures, but also over the broader role the tax system should play.

As Cuthbertson concluded, regardless of political perspective, tax policy matters because it shapes New Zealand’s ability to fund public services, support economic growth and invest in the country’s future. With many of the challenges facing New Zealand long term in nature, certainty, sustainability and the practical design of tax policy will remain important considerations well beyond the election campaign.