After ruling out wealth and capital gains taxes at last year's election, Chris Hipkins now says tax system reform is an "economic necessity" as the Labour leader recommits to putting all options "back on the table."
He made the remarks in an address to party members, billed as being about his party's "values" and as his "first major speech as opposition leader".
Hipkins' comments today are the strongest commitment to tax system reform since he began in the job of Labour leader. Following the election last year, he said tax options for the 2026 election would be back on the table.
However, he stopped short of endorsing specific changes, instead saying his caucus would work through options over the next two years, with the release of a "series of discussion documents".
Labour leader recommits to putting all options "back on the table" in an address to party members (Source: 1News)
"One of those will be on tax. It will set out some of our options for future tax policy. It’s intended to help inform the debate, but how we shape it will be up to us," Hipkins said.
"Our work on future policy will take some time, as it should, because none of the issues I just mentioned can be considered in isolation. We will use our time in opposition to listen, to build relationships, to research and to develop new ideas and new policies."
The party leader also spoke about what he called the coalition's "disgusting barrage" on Māori issues, opposition to the Government's smokefree law changes, and reflecting on the upcoming 40th anniversary of the David Lange government.
Labour leader Chris Hipkins joins Q+A live in studio to talk about some of the major policies of his party’s campaign, and whether Labour has a record in government to run on (Source: 1News)
Hipkins said: "Our current economic model celebrates those who live off wealth over those who live off work. In the modern economy, contribution and reward aren’t as linked as they used to be.
"Hard work is no longer the ticket to getting ahead it should be. While some earn a lot more than they are worth, the majority are worth a lot more than they earn.
"Success and aspiration should be celebrated. But when hard work no longer pays off, it’s time for a rethink of the system."
Hipkins later continued: "Now is the time to have that debate. After the election, I said that all options around changes to the tax system were back on the table, and I meant it."
The prime minister said it was “simply not the time for a big shake-up of our tax system”. (Source: 1News)
He explained his position: "Our current tax system is inequitable, and it’s unsustainable.
"We have one of the least diversified tax systems in the world, meaning public investment into things like health, education, welfare, housing and infrastructure is more reliant on income tax than most other countries we compare ourselves to.
"In other words, those who earn their living through their salary and wages are contributing a greater share than those who earn income through wealth.
"Under this government, those with multiple investment properties are getting huge tax breaks while those on salary and wages pay tax on every dollar they earn.
"When even the IMF is saying our tax system is broken it really is time to do something.
"As the way we live and work continues to change, with a smaller proportion of the workforce earning taxable salary and wages, reform of our tax system won’t just be a matter for the idealists, it will be an economic necessity."
The Labour leader concluded his address: "When the 2026 general election rolls around we will be more prepared for government than any opposition in our country’s history."
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