CTU Welcomes Labour’s Capital Gains Tax Plan

The New Zealand Council of Trade Unions has thrown its support behind Labour’s proposed Capital Gains Tax, arguing it is essential to fund healthcare and rebalance an unequal tax system. With Election 2026 looming, tax reform is fast becoming one of the defining economic fault lines in New Zealand politics.

CTU Backs Labour’s Capital Gains Tax Proposal

The NZCTU Te Kauae Kaimahi is welcoming the much-needed tax reform proposed by the Labour Party today.

“New Zealand needs a more equitable taxation system. A Capital Gains Tax (CGT) has been an essential missing part of that system, so we welcome Labour’s proposal to bring in a CGT after the next election,” said NZCTU President Richard Wagstaff.

Why the CTU Says New Zealand Needs a CGT

“Our current tax system advantages those who speculate in property over those who go to work every day. It reduces the investment available to foster a broader based, more sustainable economy.

Funding Healthcare Through Tax Reform

“Using the proceeds from a CGT to pay for additional healthcare will benefit working people, their whānau, and the broader economy. No one benefits when people can’t afford to go to a GP. Funding healthcare properly has been a key concern for the union movement.

“The CTU committed to a CGT in our recent Aotearoa Reimagined policy document. Capital gains taxation grows over time, meaning that in future there will be more funding available to fund public services.

“This kind of revenue is exactly what New Zealand needs right now. When paired with free GP visits, it’s also a measure that will help tackle the cost of living for many.

Tax Cuts vs Public Investment

“The coalition Government has given away billions in tax cuts, weighted to those who need it the least. It has cancelled or stalled billions of dollars in public investment in schools, hospitals and transport. New Zealand needs a serious conversation about how we invest in a public service and a better economy, and that must include a CGT,” said Wagstaff.

With tax reform once again at the centre of political debate, the CTU’s endorsement signals that unions see Capital Gains Tax as both an economic fairness measure and a funding mechanism for essential services. As Election 2026 approaches, the contest over how New Zealand funds healthcare and public investment is likely to intensify.