MP Deborah Russell dodges question on whether Labour capital gains tax goes far enough

MP Deborah Russell wouldn't say whether Labour's capital gains tax policy should go further. Photo / Mark Mitchell

Labour’s revenue spokeswoman won’t say whether the party’s capital gains tax proposal goes far enough.

When asked repeatedly whether the party’s property-focused CGT went far enough, the furthest Deborah Russell would go was to say she was “very comfortable” with the policy.

She was asked six times to say whether it went far enough, but declined to say it did.

Russell yesterday faced criticism from National - who accused her of opening the door to more taxes should the party return to power.

Labour leader Chris Hipkins, meanwhile, hosed down suggestions the party was contemplating additional taxes.

The accusation came after a new report from lobby group Tax Justice Aotearoa called for new taxes.

The group called for a more comprehensive capital gains tax, a wealth tax, and windfall taxes for banks and electricity gentailers.

The group also called for a tax-free threshold and GST rebates for low-income workers.

Labour is proposing a 28% capital gains tax that covers only residential and commercial investment properties, excluding the family home.

Russell told Newstalk ZB the report had some good suggestions.

“I don’t agree with all their ideas, but they’ve got some good stuff around there on transparency, and some integrity stuff, I think. They’ve got some stuff on the taxation of trusts, which we continue to work on. They’ve got some stuff on remedial taxes.

“I’m just saying, yeah, I think this is on the right track.”

Russell agreed the group’s CGT proposal went further than Labour’s.

But when asked if Labour’s policy goes far enough, Russell wouldn’t say either way.

“It’s a very significant change to New Zealand’s tax system. It’s the policy we’ve agreed to as a party, and I’m comfortable with it.”

Asked a further five times whether the policy goes far enough, Russell repeated she was “comfortable with it”.

“I know it wasn’t your question, but it’s the answer I’m going to give you.

“You’re setting me up to trap me to try to get me to oppose my leader and go against my party, and I’m not buying into that kind of nonsense.”

Earlier today, Russell told the Post the party would “of course have more tax policy than that, but it will be centred around the integrity of the tax system and the transparency of it”.

That appears to contradict Hipkins, who this morning was asked by Newstalk ZB’s Canterbury Mornings whether the party was receptive to the group’s ideas.

“Lobby groups can argue for whatever they want. We’ve announced our tax policy, which is a simple targeted capital gains tax, and that’s as far as Labour will be going in that area.”

National’s campaign chair, Simeon Brown, said Russell is opening the door to new taxes.

“Labour has already announced a capital gains tax that would target households, KiwiSavers, and every single business in the country. Now, Ms Russell has made it clear they are open to going even further.

“Labour is all over the place on policy. Chris Hipkins has repeatedly refused to rule out expanding his capital gains tax, Deborah Russell is backing piling on more taxes, and Barbara Edmonds is nowhere to be seen.”

Russell said Brown is wrong.

“That is Simeon making nonsense up because he wants to.

“Everyone is reading far too much into a very bland statement I made about continuing stuff around the integrity and transparency of the tax system.”

Ethan Griffiths is a political reporter with Newstalk ZB, based in the parliamentary press gallery. He joined NZME as a print journalist in 2020, previously working as an Open Justice reporter in the Bay of Plenty and Wellington, and as a general reporter in Whanganui.