Wide shot of the debating chamber Photo: VNP / Phil Smith
ANZ's boss says it's time for a tax on property gains - but also that it'll take someone "politically extremely courageous".
The bank's chief executive, Antonia Watson, told RNZ's 30' with Guyon Espiner on Wednesday "the time has arrived for a capital gains tax".
She's the latest voice in a now growing chorus of influential New Zealanders calling for a capital gains or wealth tax.
But the matter has always been politically unpalatable, and Watson admitted it would need someone "politically extremely courageous".
So is that likely? Here's what the political parties say:
Labour pondering policy - 'we're in a different space'
Labour campaigned on a capital gains tax as part of a suite of major changes at the 2014 election but was soundly beaten.
Under Jacinda Ardern the party again toyed with the idea put ultimately decided against it frustrating some in Labour's caucus, including former revenue minister David Parker.
Labour deputy leader on calls for Capital Gains Tax
Deputy leader Carmel Sepuloni was at pains to say the party had not made any decisions.
But she agreed there was a clear fairness issue and said more people were coming around to the idea.
"Compared to when we were talking about it back in 2011, 2012; it's more of a conversation that's being had, that's a good thing. We've got a democratic process to go through as a political party but it's definitely one of the main topics of conversation.
"There have been times in the past that we have not been elected and some part of that has been because the electorate have not been receptive to our policy, including our tax policy. But there's more people talking about progressive tax now and so I think we're in a different space."
New Zealand needed a progressive tax policy, Sepuloni told Morning Report.
"I think there's a fairness element here in terms of, not New Zealanders that own their family home, but those that are making gains off properties that are clearly investment properties and I think that's why we should be looking at this."
Once decided on, the party would make its tax policy public and if elected, would implement it, Sepuloni said.
National Party
Prime Minister Christopher Luxon laughed off calls from ANZ chief executive Antonia Watson, who said she supported the tax.
"I love it that the CEO of a big bank from Australia wants to take more money off New Zealanders," Luxon said.
"You don't tax your way out of a recession. You grow your way out of a recession."
Finance Minister Nicola Willis told Morning Report Thursday that New Zealanders "are taxed at a pretty normal level".
"The problem we have had in recent years is our spending as a country have increased out of control. It has been a dramatic increase in spending.
"We just keep spending more and we find new ways to tax people."
Willis believed a capital gains tax would detract people from investing.
"If you own a mechanics' business or an interior decorating business and you know that when you go to sell it you will be slapped with a capital gains tax, that would be pretty offputting."
Willis said that government spending needs to be reined in, and "you can't tax yourself to prosperity".
Willis has also said a capital gains or wealth tax was not a solution.
She said National wanted to "grow the pie", rather than change how it was divvied up.
The Green Party
The Greens have long advocated for a "more progressive" tax system and have campaigned on various proposals at different elections.
In February 2019, Green co-leader James Shaw challenged his fellow government MPs to implement a CGT and questioned whether they deserved to be re-elected if they did not.
"The Green Party have long been calling for this fundamental imbalance to be addressed. Every expert group in living memory has agreed with us. But no government has been bold enough to actually do it."
The ACT Party
As a general rule, ACT is an advocate for less taxation, not more.
On Wednesday, ACT leader David Seymour again dismissed the prospect of a CGT: "A lot of countries have capital gains taxes. A lot of people like it. Doesn't make it right".
He said it was the difficulty building houses that was driving unfairness in New Zealand, not its tax system.
New Zealand First
In 2019, NZ First leader Winston Peters famously refused his party's support for a CGT as proposed by the Tax Working Group.
"New Zealand First's view is that there is neither a compelling rationale nor mandate to institute a comprehensive capital gains tax regime."
Te Pāti Māori
Te Pāti Māori last year campaigned on a suite of new taxes, including a CGT.
In July last year, Te Pati Māori co-leader Rawiri Waititi advocated for more focus on the redistribution of wealth.
"We want a capital gains tax on houses. If we had capital gains taxes back in 2018, this country would have made $200 billion," Waititi said.