Qiulae Wong shows how Chris Hipkins will fill his $10.4 billion hole

“Chris Hipkins needs to find billions more every year to fund the bigger government he is promising. If you’re wondering where the money will come from, listen to his would-be coalition partners,” says ACT Deputy Leader Nicole McKee.

“Opportunity leader Qiulae Wong has told the HomeRun property podcast that her party is open to abandoning its land value tax in favour of Labour’s capital gains tax – but only after negotiating with Labour.

“She said: ‘We think a land tax is the better solution, but if the general public wants to go capital gains tax – that is supporting Labour’s – we’ll negotiate with them on that.’

“The word ‘negotiate’ is doing the work there.

“Labour’s current CGT is deliberately narrow. Opportunity’s tax agenda is far broader.

“And Wong has already made clear what she thinks of Labour’s version. She has previously called Labour’s CGT ‘tinkering’ and ‘pretty minuscule’.

“So nobody should seriously believe Opportunity would enter coalition negotiations, give up its flagship land tax, and ask for nothing in return.

“Hipkins claims Labour will introduce only a capital gains tax and no other taxes. But that leaves plenty of wriggle room if Opportunity – or the Greens and Te Pāti Māori – demand a much more aggressive CGT as the price of putting him into the Beehive.

"Once Hipkins has accepted the principle of a capital gains tax, coalition negotiations can change its scope, rate, exemptions and design while he continues to claim he has introduced ‘only a capital gains tax’.

“Labour's current CGT doesn't cover the family home, or farms, but we know Opportunity wants to tax these properties.

“The point at which the tax is collected could also be up for discussion. Taxing on-paper gains at regular periods would bring Labour's CGT closer to Opportunity's vision.

“And Hipkins would have every reason to roll over. In fact, his spending plans mean he may need to.

“Labour now says it wants core Crown spending at around 33 per cent of GDP. This means spending an extra $10 billion or more every year. That money has to come from somewhere.

“Voting Labour is a package deal. Labour comes with the Greens, Te Pāti Māori, Opportunity, or some combination of the three – and each of these parties is champing at the bit to tax more of what New Zealanders have worked, saved and sacrificed to build for themselves and their families.

“A Party Vote for ACT isn’t just a vote to lock Labour out. It’s a vote to lock out their tax-hungry coalition partners too."