Labour Promises Surplus by 2030 with Capital Gains Tax and Wellbeing Focus

Labour Party leader Chris Hipkins has announced his party's comprehensive new economic policies, aiming to return the economy to surplus by 2029-2030. The plan includes a targeted Capital Gains Tax and restoring wellbeing reports to the Public Finance Act.

The Labour government will balance the books and bring down debt, with net debt reduced to 20% of GDP over time. They will also establish an independent Parliamentary Budget Office to scrutinize government spending.

Hipkins emphasized that a growing and resilient economy means governments can invest in quality healthcare, education, infrastructure, housing, and public services. He said Labour will back New Zealand's potential by supporting businesses, especially small ones, to grow and create good jobs.

The party also plans to restore the Reserve Bank of New Zealand's dual mandate, which considers both price stability and maximum sustainable employment. Hipkins stated that keeping inflation in check is crucial, but unemployment has a significant impact on those who lose their jobs and the wider economy.