Our 2011 election manifesto - Labour Party

Employer contributions will gradually increase at a rate of 0.5 per cent a year,
from 3 per cent to 7 per cent, over 9 years
The current minimum employee contribution of 2 per cent will be retained; the
$1,000 kick-start will be spread over 5 years; and Labour will not make any more
changes to the member tax credit.
For more information, see Labour‟s Savings policy.
Labour will introduce a 15% Capital Gains Tax to bring New Zealand in line with the
rest of the OECD:
The capital gains tax will never apply to the family home.
It will apply only to the gains made on the sale of shares, investment properties,
companies etc., and only to gains made after the law is passed.
Fewer than 10% of New Zealanders in any one year will be affected by this tax.
For further information, see Labour‟s Finance policy.
Lack of long term mortgage products
New Zealand offers no long-term mortgage products beyond 5 years. This contrasts with
many other countries where fixed rates of 4-6.5% for periods of 10-20 years are common.
Such mortgage products provide certainty for households while the reduced rates improve
ongoing affordability.
Labour will investigate ways of introducing long-term fixed interest mortgage products
into the New Zealand market.
Building community housing sector capability and partnership
Currently, New Zealand continues to manage its social rental stock primarily from a central
government organisation and, to a much smaller extent, from local authorities.
Housing New Zealand continues to house our lowest income families, but in recent years
housing need has spread well into the middle classes. Home ownership and affordable
private rentals are now out of reach for many families who now look to Government for
assistance. We see potential for meeting this need in a greater involvement for the 'third' or
community sector.
We see this role as complementing continued Government investment in social housing, not
replacing it. We see particular potential for the sector in the area of affordable home
ownership for first time buyers and mixed tenure developments.
Labour will work with the community housing sector to develop it in ways that will see
it complementing an increase in HNZC social housing stock through access to capital
or land.
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