Luxon Defends Finances, Accuses Hipkins of Political Diversion
In a heated exchange, Prime Minister Christopher Luxon has hit back at Labour leader Chris Hipkins, accusing him of launching a personal attack on Luxon's financial dealings. The controversy stems from Luxon's substantial earnings from property sales, which Hipkins deemed unfair given the tax system.
Hipkins criticized Luxon's recent property sales, which generated hundreds of thousands of dollars in tax-free profits, while questioning the fairness of the current tax system. He argued that those who work hard and pay taxes on every dollar earned should not be outpaced by those who profit from property speculation.
The Labour Party has announced a capital gains tax on property, excluding family homes and farms, at a rate of 28% from July 1, 2027. Luxon, speaking from South Korea at the ASEAN summit, dismissed the criticism as a political diversion.
"I'm aware that they've had a rough week with the capital gains tax policy, which I believe is their fourth failure in recent weeks," Luxon said. "I don't attack his personal finances, and I wouldn't expect him to do the same."
Luxon emphasized that the capital gains tax policy is not about his personal finances but about the impact on New Zealanders. He argued that the policy affects beach house owners, rental property investors, and businesses operating in New Zealand, highlighting the broader implications beyond his own earnings.
Hipkins' comments came in response to National's social media attack ads targeting the policy. When asked about the ads, Hipkins challenged Luxon to a debate on personal finances, stating, "Bring it on. He sold four houses last year and made more money, tax-free, than he earned in his prime minister's salary, which he paid tax on every dollar of."
The debate underscores the political tension surrounding the capital gains tax policy and the personal finances of the leaders involved.
