Two-thirds of Kiwis want wealth tax, Labour's grip on main issues loosens

About two-thirds of Kiwis support a wealth tax while about half back introducing taxes on inheritance, visitor accommodation stays and capital gains, according to a new survey. 

It comes as Labour’s perceived ability to manage taxation has suffered in the latest Ipsos Issues Monitor survey after attacks led by the National Party. 

The survey, which polled 1003 people between September 3 and 11, aligns with a recent dip for Labour in a number of public polls. The party has fallen in people’s estimation for managing the country’s five most important issues, but still leads National in all five. 

Inflation/the cost of living remains the most pressing area for Kiwis and was listed by 63% of respondents when asked to name the three most important issues facing the country. 

Health was second, increasing six percentage points to 44% since the last survey in July. The top five was completed by the economy, unemployment and housing respectively. 

The survey asked respondents which political party they felt was most capable of managing issues facing the country. Labour led in the top five issues and 10 of the remaining 15, which included education, taxation, immigration, household debt, transport, race relations and fuel prices. 

Chris Hipkins insists Labour will only introduce a capital gains tax. Photo / NZME 

National was considered more capable on crime and foreign affairs/defence. The Green Party was considered the authority on climate change and water concerns, while Te Pāti Māori led on issues facing Māori. 

However, a closer look at the data shows the share of respondents who felt Labour was most capable of managing each of the top five issues has decreased since the last survey. 

The most marked drop was in unemployment, with Labour falling from 42% to 34%, while National was steady at 21%. People unsure which party was most capable increased from 11% to 14%. 

Labour and National suffered four percentage point dips in being considered capable of managing the cost of living and were at 31% and 21% respectively. 

A large gulf remained in health. Labour dropped from 41% to 38%, and National improved one percentage point to 21%. 

Ipsos was in the field when National was attacking Labour over potential taxes it could introduce, highlighting policies promoted by potential coalition partners the Greens, Te Pāti Māori and Opportunity, despite Labour insisting it will only introduce a capital gains tax. 

On taxation, Labour’s perceived management ability fell from 33% to 28%, while National was up one percentage point to 25%. 

The survey digs deeper into taxation, showing that while it was not in Kiwis’ top 10 concerns, the proportion of respondents naming taxation as one of their three most important issues increased to 8% – the highest since the last election. During the past three years, taxation had been among the three most important issues for between 4% and 6% of people across 11 surveys. 

National finance spokeswoman Nicola Willis has been a key figure in her party's attacks on Labour over tax. Photo / Mark Mitchell 

It found a roughly even split between those who believed they should pay less tax (44%) and those who felt they paid the right amount (45%). Some 4% of respondents felt they should be paying more. 

More than half (52%) of people aged 34-49 wanted fewer taxes, compared to 35% of people aged over 65. About 58% of people aged over 65 felt taxes were at an appropriate level, compared with 36% of people aged 34-49. 

Asked what taxes they’d support, almost two-thirds (64%) favoured a 2.5% wealth tax on net assets above $10 million, except for the family home. The Green Party and Te Pāti Māori have wealth tax policies. A quarter (26%) did not support a wealth tax and 10% were unsure. 

Similar proportions of respondents supported taxes on inheritance (49% in favour v 35% against), short-term visitor accommodation stays (48% v 36% against) and capital gains (45% v 40% against). 

Broken down by party, Green Party supporters were the most likely to support a wealth tax (89%), compared with 72% of Opportunity supporters and 76% of Labour supporters. 

Almost half of Winston Peters' supporters surveyed by Ipsos say they are in favour of a wealth tax. Photo / Mark Mitchell 

Almost half of National supporters (47%) were in favour of a wealth tax, slightly below the 48% of New Zealand First voters surveyed but above the 43% of Act supporters. 

Slightly more than half (56%) of Labour supporters wanted its party’s proposed capital gains tax, less than the 77% of Greens supporters and 66% of Opportunity supporters. 

The Opportunity Party’s main policy, a land value tax, had lower backing among its own supporters than a wealth tax, an inheritance tax, a bed tax and a capital gains tax. 

The Government’s performance rating had stayed largely consistent with previous surveys at a mean score of 4.1 out of 10. 

Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.