Key facts
- The Opportunity party proposes a universal basic income of NZ$19,400 per year for most New Zealand residents.
- This income would be funded by a new 1.75% annual land tax, which would include primary residences.
- The party's leader, Qiulae Wong, believes this policy will curb rising house prices and shift the tax burden from income to wealth.
- Recent polls suggest the Opportunity party could secure seats in parliament and potentially be a kingmaker in coalition negotiations.
- Both the National and Labour parties have stated they would not adopt the Opportunity party's tax proposals.
A New Zealand party that could hold the balance of power after the upcoming election has proposed a universal basic income for most residents, funded by a new land tax. Qiulae Wong, leader of the Opportunity party, stated on Thursday that the policy aims to curb runaway house prices and shift the tax burden from income to wealth.
The party's flagship policies include an annual universal basic income of NZ$19,400 (US$11,552.70) for most New Zealand residents, financed by a 1.75% annual land tax. The party also seeks to simplify the country's income tax system. According to the party's modeling, 90% of New Zealanders would be financially the same or better off under their proposals, despite an anticipated 10 to 15% decrease in house prices resulting from the land tax.
Wong highlighted the current housing affordability crisis, noting that it takes seven times household income to buy a home, compared to about three times when her parents were purchasing their first homes. She emphasized a global trend towards taxing wealth more and work less, which her party's tax reset package is designed to address by shifting the burden onto property.
While a universal basic income would be a first for a developed economy, land taxes exist in many countries, though typically excluding primary residences, unlike the Opportunity party's proposal. The party faces challenges in implementing its manifesto, as both the National and Labour party leaders have ruled out adopting Opportunity's tax policy.
Wong indicated that the party would push for a role in the country's finance ministry or tax collection oversight to advance their reform agenda. She acknowledged that significant tax reform might be a large ask for a new party entering parliament but stated it would always be on the table for discussion. The party leader also suggested that coalition governments might be more likely to adopt Opportunity's policies on improving competition in the supermarket and banking sectors, and on clamping down on lobbying by capping individual political donations at NZ$30,000.