A New Zealand party that could hold the balance of power after this year's election wants to bring in a basic income for almost all residents that will be funded by a new land tax, with its leader saying on Thursday that the policy would also curb runaway house prices.

Qiulae Wong, a 38-year-old former sustainable business consultant, only entered politics in November as leader of the decade-old Opportunity party, but has already overseen a dramatic rise in its popularity.

Recent polls have put the party above the five percent threshold required to have its candidates sit in the country’s parliament, and current projections show both the ruling centre-right National and the opposition centre-left Labour would require its lawmakers to form a coalition government after the November 7 poll.

Opportunity’s flagship policies centre on tax, with a NZ$19,400 per year universal basic income for most New Zealand residents funded by a 1.75 percent annual land tax.

It also wants to simplify the country's income tax system.

The party says its modelling shows 90 percent of New Zealanders would be the same or better off under their proposals, despite a 10 to 15 percent fall in house prices likely from a land tax.

“Home affordability now is seven times household income, versus about three times when my parents were buying their first home,” Wong said on Thursday.

“So we've seen more than a doubling of that in a generation – and if that doubles again for the next generation, it's just a completely unsustainable trajectory.

“There's also been a shift globally around seeing the need to tax work less and tax wealth more or tax assets more. And so that's what this tax reset package is designed to do: take some of the burden off income tax and place that onto property,” Wong said.

A basic income for citizens would be a first for a developed economy, while land taxes exist in dozens of countries but usually exclude primary residences, unlike Opportunity's policy.

The party faces challenges implementing its manifesto in any coalition government, with the leaders of National and Labour both ruling out adopting Opportunity’s tax policy.

Wong said the party would push for a role in the country’s finance ministry or overseeing tax collection, to further advance the case for reform at the country's next election, expected in 2029.

“We have to be realistic that tax reform is a pretty big ask for a new party entering parliament for the first time. But it's always something that we will be bringing to the table to discuss,” she said. (Reuters)




Edited by Tony Sabine