Capital Gains Tax Debate Turns Personal as Hipkins Accuses Luxon of Making More From Property Than PM Salary

Chris Hipkins has reignited the capital gains tax (CGT) debate — and taken direct aim at Prime Minister Christopher Luxon — accusing him of making more from flipping houses than he earned as the country’s leader.

Speaking after unveiling Labour’s new tax policy, Hipkins said his own beach house would be subject to the proposed CGT but argued the plan was “fair and necessary.” The tax, he said, would help fund three free GP visits for all New Zealanders, one of Labour’s headline election promises.

Under the proposal, the family home, shares, KiwiSaver, and farms would be excluded. The party claims the additional revenue would strengthen healthcare access while addressing inequality in the tax system.

“The rollout this time won’t face the same hurdles as 2017,” Hipkins said, referencing Labour’s previous doctor visit policy, which had to be scaled back after the party admitted it couldn’t fund the entire plan immediately. The shortage of general practitioners, he added, is being addressed in tandem with the new initiative.

The National Party has criticised the CGT proposal, arguing it would harm businesses and discourage investment. Finance spokesperson Nicola Willis warned that a Labour–Green coalition could lead to even more taxes if the two parties join forces after the next election.

When asked about National’s campaign ads highlighting that beach houses would be included under Labour’s plan, Hipkins hit back sharply.
“If Christopher Luxon wants to debate personal finances, bring it on,” he said. “He sold four houses last year and made more money tax free from doing that than he earned as prime minister. Why should he be able to make more than $600,000 in one year from flipping properties whilst the people who go out and work hard every day for a living pay tax on every single dollar that they earn.”

Hipkins made the remarks during a speech to the Council of Trade Unions in Wellington, where he also pledged to restore fair pay agreements and reaffirm Labour’s commitment to pay equity.

Discussing the health initiative, he said a new clinical triage system would be rolled out first to relieve pressure on GPs before the free visit scheme takes full effect.
“We’ve set ourselves a year-and-a-half implementation timeline, so full eligibility will kick in from July 1, 2028,” Hipkins said. “That gives us time to make sure we’re freeing up the four-and-a-half million extra GP visits needed so practices can actually cope with any increase in demand.”

Hipkins also sought to distance Labour’s agenda from the Greens’ tax ambitions, insisting the party would stick to its own platform.
“You don’t have to be like Christopher Luxon and roll over and let Winston Peters and David Seymour tickle your tummy,” he said. “I’m being very clear that Labour will support the policy that we are campaigning on — and this is the policy we will implement if we form government after the next election.”