The Green Party's proposal for a capital gains tax, excluding the family home, will redirect savings and investment away from unproductive housing speculation into more productive investments.
A capital gains tax will make houses more affordable for young buyers who are currently priced out of the market, and over time it will raise $4.5 billion a year in revenue for the Government.
It sends a signal to investors to place their capital somewhere other than housing.
We need our capital for productive green investment and these measures will help make that change.
Sorting out the capital markets is vital to the New Zealand economy and the green transition. A capital gains tax is the way to do that. The Aussie banks have had free rein to control capital and they made a mess of it — borrowing for speculation in land and housing to maximise their profits at the expense of New Zealand. It's time to mobilise capital markets to be part of the solution not part of the problem by investing in a smart green economy.
Find out more about what a capital gains tax would mean for New Zealand and what the Green Party's plan to introduce this smart, green tax.
Our policy on capital gains tax
- inflation adjusted
- applies to assets sold in New Zealand
- includes a blanket exemption for the family home
- treats capital gains as income for tax rate purposes
Read what people are saying about capital gains tax
Series by Chye-Ching Huang and Craig Elliffe on why NZ needs a capital gains tax
- Hard to argue with benefits of capital gains tax
- Busting the myths of a capital gains tax
- Discarded tax solutions deserve another look
Read reports about the need for a capital gains tax
New Zealand and international financial and economics based organisations have been calling on New Zealand to adopt a capital gains tax.