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Labour has today unveiled plans for a new Medicard offering every New Zealander three free GP visits a year, funded through a targeted capital gains tax on property profits.
Under the proposal, a 28 percent tax would apply to profits made after 1 July 2027 from the sale of commercial or residential property, excluding family homes.
Labour says the move will ensure those profiting from property speculation pay their fair share while ordinary Kiwis benefit through free access to primary healthcare.
Labour leader Chris Hipkins said the targeted tax will “level the playing field” for businesses and fund tangible health benefits.
“Every dollar raised will go straight into the health system, including funding three free doctor’s visits a year for everyone with a new Medicard,” Hipkins said.
Exemptions would include family homes, farms, KiwiSaver, shares, business assets, inheritances, gifts and personal items.
Labour says nine out of 10 New Zealanders will not pay any new tax under the plan.
Labour’s health spokesperson Ayesha Verrall says the initiative responds to rising healthcare costs.
“One in six New Zealanders cannot afford to visit their doctor when they are sick. Under a Labour Government, all someone will need to see their doctor is a Medicard, not their credit card.”
The digital-and-physical Medicard would be issued at birth or upon residency and integrate with existing GP systems.
However, National’s finance spokesperson Nicola Willis criticised the proposal, calling it “a tax on savings, investment and growth”.
“Labour’s new capital gains tax would hit businesses and savers just as the economy is getting back on its feet,” Willis said.
“It’s a recipe for fewer jobs, lower incomes and less investment.”
Labour argues its approach targets speculative profits while protecting productive investment, a key difference it says defines its “fair growth” economic plan.
