Opportunity Party first to release tax policy for 2026 election

Tax policy is one of the major policy releases that every party of significance is expected to make during an election campaign. In 2026, The Opportunity Party (T.O.P.) are the first to do so. In this article, I put their tax calculator to the test and explore what their tax policy means for me.

Before I delve into crunching the numbers for myself, I explore the policy that T.O.P. have released. It is an expansion of their 2023 Land Value Tax policy, but the Land Value Tax, and the matching income tax cut are applied more aggressively. The policy is founded on three pillars as noted below:

• Almost all adults will get up to $370 extra per week – this equates to $19,400 in extra income and would be the largest tax cut in New Zealand history – for me that means being able to plan for a long term future instead of constantly watching my savings efforts getting eroded
• This will be funded by a Land Value Tax of 1.75%, which is intended to discourage land banking (buying land, but actively not using it) and redirect the money towards businesses instead
• T.O.P. will reintroduce a Compulsory Superannuation scheme (which N.Z. had until former National Prime Minister Robert Muldoon upended it in 1975, and no government since has seriously contemplated reinstating; cost to N.Z. of not having that fund still in place is thought to be around N.Z.$600 billion); over time

This needs to be read in conjunction with the Tax Reset policy, and the Tax Reset Transition Plan.

The Tax Reset policy talks you through the details. Tax Reset Transition Plan outlines how this is going to be phased in, and preceded by a period of preplanning to ensure that the transition is as smooth as possible. This has four points that I want to note:

• The L.V.T. for example will be phased in, initially starting at 0.5%, which is lower than the L.V.T. initially proposed by T.O.P. leader Raf Manji in 2022
• The Citizens income and accompanying tax changes will happen in tranches
• Increasing compulsory employee/employer contributions to KiwiSaver gradually by 1% over six years
• The above will be preceded by two years of preplanning to ensure a smooth transition

There are concerns that this is an anti-landlord tax policy. To be anti-landlord would be to allow the current lop-sided system that is very easy on those who have capital and means to create capital to continue. To be pro-landlord – i.e. enabling more people to become them – means getting rid of the imbalance that has been formed. I have no problem with landlords as they play an essential part in the property ecosystem. My issue starts when the market starts demanding people give up more than half of their income just to have a roof over their head. I would like to think that it is just a comparatively small number of landlords who are buying up properties simply for the sake of buying them up.

Many concerns I think will be answered directly by getting as many people as possible to read the tax policy and testing the calculator. I am not saying people have to agree with it – as the reader your circumstances are obviously going to be different to mine. Give it a go. You might be pleasantly surprised.

Now, the fun part. Playing with the calculator.

I tried three different simulations to see what kind of numbers I got. I work full time, pay board and live with my parents to support Dad as he cares for Mum, who has dementia.

In No. 1, I went with I/we collect superannuation and own a home – I plugged in the land value and got a $14,175 per annum tax.

In No. 2. I went with being a couple who own a home – I plugged in my income and what Dad gets for superannuation, the land value and will get a $14,283 tax cut across the household

In No. 3, I went with I’m single and I rent – I plugged in my income before tax and will get a $12,460 tax cut.