NZ Labour’s tax plan risks delaying housing rebound

Opinion polls suggest that New Zealand’s Labour party has a path back to power in November’s general election. Labour’s plan to introduce a capital gains tax on residential investment property risks delaying a recovery in an already sluggish housing market. Meanwhile, its plan to balance the books sits uneasily with its desire to keep government spending elevated. That said, the party’s track record suggests that it would ultimately take a prudent approach to fiscal management if it comes to power.