Wellington, New Zealand – Chris Luxon, leader of the National Party, has come under fire for his rapidly increasing personal wealth, which critics argue has been fueled by taxpayer funds. Luxon’s personal fortune has grown significantly since entering politics, with some questioning the ethical implications of his financial gains while advocating for policies that benefit the wealthy.
Luxon, a former Air New Zealand CEO, entered politics in 2020. Since then, his personal wealth has reportedly increased substantially, with his stake in Air New Zealand alone estimated to be worth millions. This growth has coincided with Luxon’s vocal support for tax cuts and deregulation, policies that critics argue disproportionately benefit the wealthy at the expense of ordinary New Zealanders.
Critics have said “Luxon is preaching about fiscal responsibility while simultaneously benefiting from policies that line his own pockets. This raises serious questions about his commitment to representing the interests of all New Zealanders.”
The Prime Minister, has faced criticism for profiting from changes he made to the bright line test, a tax on capital gains from property sales. Luxon’s government shortened the bright line test from five years to two years, a move that allowed him to avoid paying tax on the sale of his Wellington apartment, which he purchased in 2020 and sold in 2024 for a significant profit.
He also sold an investment property in Onehunga, Auckland, which he purchased in 2015, for a profit, but this sale was not subject to the bright line test as it occurred before its implementation.
Antonia Watson, CEO of ANZ, has recently voiced her support for a capital gains tax in New Zealand, stating that “the time has arrived” for its implementation. She specifically advocates for a tax on realized capital gains, particularly those derived from investment properties. Watson believes that since individuals invest in housing with the intention of capital appreciation, it’s logical to include these gains within the tax system. She emphasizes the fairness of aligning capital gains taxation with income tax, while acknowledging the potential challenges of compliance costs and implementation complexity.
The Prime Minister criticized ANZ CEO Antonia Watson for her support of a capital gains tax on investment properties. He remarked that it was ironic for the CEO of a major Australian bank to advocate for taking more money from New Zealanders. Luxon argued that the solution to a recession lies in growing the economy, not in increasing taxes. The problem with these assertions by the Prime Minister is Banks don’t tax people or receive the profit from banks this goes to the government and this would not be an increase in taxes it would be putting the burden of tax onto wealthier individuals.
Critics argue that Luxon’s actions highlight the unfairness of New Zealand’s tax system, where wealthy individuals can avoid paying taxes on capital gains while ordinary citizens are taxed on their income. Luxon has defended his actions, stating that his property dealings are private matters and unrelated to his role as Prime Minister.
The debate surrounding Luxon’s wealth is likely to continue as the country heads towards the next general election. It remains to be seen whether voters will be swayed by Luxon’s promises of prosperity or by concerns about his personal financial gains.