Economy · Party position

Labour on Economy

Return to surplus, grow economy, support businesses and workers

Labour says it will manage government spending carefully and return to surplus by 2028/29. It plans to invest in a New Zealand Future Fund to back Kiwi businesses, help small businesses get paid faster and deal with less paperwork, support more apprentices in the trades, and introduce a 28% tax on profits from selling investment properties to fund health spending. It also plans to make price gouging illegal, break open the supermarket duopoly, and set a target for 5% of government contracts to go to Māori businesses.

What they say they'll do

Return to an OBEGAL surplus by 2028/29 and reduce net debt towards 20% of GDP
Introduce a 28% capital gains tax on profits from selling investment property from 1 July 2027, with all revenue ring-fenced for health
Make price gouging illegal for large companies charging excessive prices for essentials including groceries, energy, fuel, telecommunications, banking and insurance
Break open the supermarket duopoly by creating two independent wholesalers and ending unfair contracts that stop stores lowering prices
Raise compulsory KiwiSaver employer contributions to 6% by 2032, extended to workers over 65
Establish a New Zealand Future Fund to invest in Kiwi businesses, and introduce a Small Business Action Plan covering faster payment, easier investment and less paperwork
Reinstate Progressive Procurement with an initial target of 5% of government procurement contracts allocated to Māori businesses
Establish an Office of AI within DPMC and require data centres to secure their own renewable energy supply and pay for their own connection costs

Who this affects

small businesses

Labour says it will legislate for faster payment times and target 15% of government contracts for small businesses and start-ups, aiming to reduce paperwork and make it easier to invest.

property investors

A 28% tax would apply to profits made from selling investment properties after 1 July 2027, excluding the family home, farms, KiwiSaver, shares, businesses and inheritances.

supermarket shoppers

Labour plans to make price gouging illegal and break open the supermarket duopoly to create more competition in grocery wholesale supply.

workers saving for retirement

Compulsory employer KiwiSaver contributions would rise to 6% by 2032, and the scheme would be extended to workers aged over 65.

Māori businesses

An initial target of 5% of government procurement contracts would be allocated to Māori businesses, which Labour says could mean approximately $900 million worth of contracts.

In their own words

“Balance the books, return to surplus by 2028/29, reduce net debt towards 20% of GDP, and keep government spending and revenue sustainable.”

“Labour will reinstate Progressive Procurement, with an initial target of 5% of government procurement contracts allocated to Māori businesses.”

“A simple, targeted 28% tax on profit from selling investment property after 1 July 2027. Nine in 10 New Zealanders won't pay it.”

Verify at Labour — official policy page

Summarised neutrally from Labour’s own official policy (as at 2026-10-26) and checked by an editor. Nothing is paraphrased without the source linked. Read the original ↗ Politika is non-partisan. Compare all parties on Economy →

In depth, from Labour’s policy document

Targeted capital gains tax on property

Labour proposes a 28 percent tax on the profit made when a commercial or residential property is sold, excluding the family home. It applies only to gains made after 1 July 2027, any increase in value before that date is not taxed, and is generally paid at the point of sale. The party says all revenue would be ring-fenced for health, funding three free GP visits a year for everyone.

In depth, from Labour’s policy document

A New Zealand Future Fund

Labour proposes a state investment fund that would sit alongside, but separate from, the New Zealand Super Fund. It would be seeded with a small number of Crown-owned assets plus an initial capital contribution, run by the Guardians of the Super Fund with the Minister of Finance as sole shareholder, and invest in infrastructure and New Zealand businesses. The assets it is seeded with would be barred from sale by law.

What it is

A state investment fund

Run by

Guardians of the Super Fund

Shareholder

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