Senior Labour MP appears unaware of own party's tax policy details

Senior Labour MP Willie Jackson appears unaware of the details of his own party’s tax policy, evading questions over whether the proposed capital gains tax would impact businesses. 

Appearing on Ryan Bridge TODAY, the fourth-ranked Labour MP deferred to the party’s finance spokeswoman, Barbara Edmonds, on questions over whether the tax would hit businesses that own commercial property. 

National is saying Jackson has “created more confusion” about Labour’s capital gains tax (CGT), with the party needing to “stop treating New Zealanders like fools and come clean on the true impact of their tax policies”. 

The debate was sparked by National Party claims that Labour’s capital gains tax policy would impact businesses and KiwiSaver. 

The party’s policy document, released in October last year, states that among the exemptions to the CGT is “KiwiSaver” and “business assets”, but the tax would be applied on the gains made when a commercial or residential property is sold after July next year. 

National’s argument is that because some businesses own commercial property that they often operate out of, if the profits from the sale of that property are taxed, it is a tax on the business. There is a carve-out for small businesses selling their premises to buy a larger property. 

The party also suggests that if KiwiSaver funds are invested in that business, there could be a flow-on effect to people’s savings. 

Labour’s view is that this isn’t a tax on business or KiwiSaver. The party’s leader, Chris Hipkins, says Labour has been upfront from the start about the CGT being applied to some commercial property sales. 

Hipkins has accused National of spreading lies, particularly for the claim that Labour would back nine new taxes. The nine taxes include those proposed by other parties that Labour may work alongside in a future Government; however, Hipkins has said Labour would only introduce a CGT. 

Labour leader Chris Hipkins says this isn't a tax on businesses. Photo / Anna Heath. 

This week, the Advertising Standards Authority (ASA) ruled on a National Party brochure saying Labour’s CGT would “hit” assets including “small businesses and KiwiSaver”. The complaint was that this was incorrect. 

In a majority decision, the ASA board said small businesses, when property was sold, were impacted by the CGT. However, it said, “linking KiwiSaver in the same sentence indicated it would be ‘hit’ or impacted in a similar way, which would mislead or confuse consumers”. 

“The majority said it was misleading to refer to KiwiSaver in the advertisement alongside the other assets, without a qualifier or clearer explanation of the impact.” 

Both National and Labour have chalked this up as a win. National says it proves the CGT will hit businesses, while Labour says it shows National is misleading to argue it impacts KiwiSaver. 

On Ryan Bridge TODAY on Friday morning, National’s Paul Goldsmith presented the party’s perspective on why businesses would be impacted by the CGT if they sell commercial property. Jackson said this wasn’t true. 

Bridge asked Jackson if there were KiwiSaver funds invested in companies with properties, and if those properties were sold, would a CGT be applied. 

He responded: “My information, I need to get back to Barbara on this ... I don’t think so, I don’t think so. I need to do a check with Barbara”. 

“Look, I am not the finance spokesman for goodness’ sake. We have got one tax. It’s called capital gains tax.” 

Jackson then began repeatedly calling National “liars”. 

Goldsmith said Jackson was the fourth-ranked MP in Labour and “doesn’t know what their policies are”. 

Jackson: “We’ve got one, it’s a capital gains policy, they are liars. They’re saying you’re going to get taxed here, taxed there, load of rubbish, liars.” 

The Labour MP eventually said the answer to Bridge’s questions was “no”. 

When Goldsmith said that was “totally wrong”, Jackson replied, “let’s find out from Barbara Edmonds”. 

“It’s one tax as far as I know. You guys are trying to find every little area where you could be paying capital gains tax.” 

As Goldsmith began speaking again, Jackson said: “Go jump in the lake, Goldie”. 

In a statement, National campaign chair Simeon Brown said Jackson had “created more confusion” about the CGT. He accused Jackson of “extensive flailing” and being incorrect about the impact of the policy. 

“The truth is that, according to Labour’s own website, the only exemption from Labour’s capital gains tax is for businesses selling a property to move into a larger one. Every other sale of commercial property will be subject to the capital gains tax.” 

Brown said if “Labour is this chaotic and confused” when talking about the CGT, “imagine what the implementation would be like”. 

Jamie Ensor is the NZ Herald’s chief political reporter, based in the press gallery at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. He was a finalist in 2025 for Political Journalist of the Year at the Voyager Media Awards.