NZ Election 2026: What Each Party's Tax Policy Means for Business Owners

The 2026 New Zealand election campaign is underway, and tax policy is one of the defining battlegrounds. With National polling below 30% and the Opportunity party emerging as a potential kingmaker, the outcome is genuinely uncertain — and the tax environment for the next three years could look very different depending on who forms the next government.

Here is a plain-English breakdown of where the major parties stand on tax, and what it could mean for your business.

National has made a clear commitment: no new taxes if re-elected. The party confirmed this on 23 August 2026, specifically ruling out a bed tax (tourism accommodation levy) and a bank tax — both of which had been floated as potential revenue options.

National has consistently ruled out a capital gains tax and has no plans to change the current income tax thresholds or company tax rate (28%).

What it means for business owners: Stability. If National is re-elected, the tax environment for the next three years should look much like today — no new taxes, no CGT, and no changes to the company rate. The main uncertainty is whether fiscal pressures force changes that were not signalled before the election.

Labour has released its fiscal strategy, promising to reduce debt and "get the books back into shape." The party has not announced a CGT for this election cycle — having learned from the political cost of the 2019 Tax Working Group episode.

However, Labour has not ruled out future tax reform in the way National has. The party's position is broadly that the tax system needs to be "fair" — language that leaves room for changes to trust taxation, wealth taxes, or a CGT in a future term.

Labour has also signalled it would restore interest deductibility rules for rental properties to their pre-2021 position — reversing the current government's reversal of Labour's own changes. This would affect property investors.

What it means for business owners: More uncertainty than National, but no confirmed new taxes for this term. If Labour forms a government with the Greens, the risk of a wealth tax or CGT increases significantly.

ACT is campaigning on significant tax cuts funded by reducing government spending. The party wants to lower the top personal income tax rate and reduce compliance costs for small businesses.

ACT has also announced a "one law for all" policy and is campaigning on Paul Henry's proposed cancer centre — but its core economic platform is tax reduction and deregulation.

What it means for business owners: If ACT has significant influence in the next government, there is a genuine prospect of income tax cuts — which would benefit business owners who pay themselves a salary. ACT is also the most likely coalition partner to push back on any new taxes proposed by a larger coalition partner.

The Greens have long advocated for a wealth tax — a tax on net assets above a threshold, separate from income tax. The party has proposed a 2.5% annual tax on net wealth above $2 million (excluding the family home).

The Greens have also supported a capital gains tax and have pushed for higher top income tax rates.

What it means for business owners: The Greens are unlikely to be in government without Labour. If a Labour-Greens government forms, the wealth tax and CGT proposals become live policy risks. Business owners with significant assets — property portfolios, business equity, investment accounts — would be most affected.

The new Opportunity party is polling as a potential kingmaker, with National ruling out a coalition with them. Their tax policy is less developed than the established parties, but the party has positioned itself as pro-business and fiscally conservative.

What it means for business owners: Opportunity's rise adds uncertainty to the coalition arithmetic. If they hold the balance of power, their tax positions will matter — but those positions are still being defined.

Regardless of who wins, some tax changes are more likely than others:

High probability under any government:

• Continued trust disclosure requirements (already legislated)
• IRD's increased audit activity on trusts, contractors, and cash businesses

Possible under a Labour-led government:

• Wealth tax (if Greens are in coalition)
• CGT (lower probability — Labour has been burned before)
• Changes to trust or company tax rates

Possible under a National-led government:

• Income tax threshold adjustments (if fiscal position improves)
• Further deregulation of business compliance

The honest answer is: do not make major structural changes based on election speculation. Tax policy announced before an election often looks different after it — and even if a CGT or wealth tax is announced, there is typically a transition period before it takes effect.

What you should do:

• Review your trust structure — the 39% trustee rate change is already law regardless of who wins
• Ensure your business structure is sound — a well-structured business is resilient to most tax changes
• Talk to your accountant before the election — if a change of government is likely, understanding your exposure now gives you more options

Tax policy is one of the most consequential things an election decides for business owners. If you want to understand how your current structure would be affected under different election outcomes, contact Eastmure & Associates for a straightforward conversation before polling day.