29 Oct 2025

Success of Labour's capital gains tax plan rests on expanded primary health workforce - GPs boss

9:52 am on 29 October 2025

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Capacity and workforce issues will need to be addressed before Labour's promise of free doctors visits can become a reality, the head of General Practice NZ says.

The party will campaign on a 28 percent tax on gains made after July 2027, with the family home and farms exempt.

The money raised - $700 million a year over a four-year forecast period - will fund three free GP visits a year for all New Zealanders.

The plan has been criticised by the government, with Finance Minister Nicola Willis calling it "a terrible idea" while Prime Minister Christopher Luxon said it would be "a tax on every single business in New Zealand".

General Practice NZ chairperson Dr Bryan Betty said it was a positive that a major political party was focusing on general practice and developing policy to take to voters at a time when there were existing problems such as funding, access and capacity.

General Practice New Zealand chairperson, Dr Bryan Betty

Dr Bryan Betty Photo: Supplied

However, general capacity was already working at full capacity and the workforce would need to be expanded.

Labour is confident the policy can be met within the current workforce.

Health spokesperson Dr Ayesha Verrall has said GPs would be funded through capitation increases, which alongside funding for more clinical triage systems and AI tools was estimated to free up 4.58 million appointments a year.

However, tools such as AI were already being extensively used within general practice, Betty said.

"That does save time ... I think in the next two or three years you're going to see that type of technology leap forward in a lot of ways. It will free up capacity but still we do need to build the workforce within general practice over time and that is a really important component of how we move the health system forward."

Dr Betty said while there would be criticism of Labour's free visits being available to everyone no matter what their income, it was important to put the spotlight on primary healthcare.

Already more than half the country's population had their GP visits subsidised so there were arguments in favour of giving everyone the three free visits, however, he understood why some would be critical.

Willis told Morning Report today the leak of the policy showed there were ructions within the party in part aimed at undermining Chris Hipkins' leadership.

"Already civil war is breaking out in the Labour Party over whether this tax is wide enough and yesterday Chris Hipkins couldn't even rule out whether or not it was someone in his own caucus trying to white hand and undermine him."

She also said using funding from the tax to pay for the free GP visits would lengthen waiting lists.

However, Labour's deputy leader Carmel Sepuloni said there was overwhelming support for a capital gains tax among New Zealanders.

Kiwis appreciated Labour would spend the money on the health system, which they knew was under huge pressure.

Both low and middle inclome earners were struggling to meet the costs of seeing a GP.

Sepuloni said the party has plans to help doctors meet the demand and Dr Verrall has been working closely with the sector.

"There's a few different components but one of them is the ability to triage people over the phone where they don't necessarily need to go into a GP."

Other GPs enthusiastic but warn sector in crisis

The general practice sector has welcomed the announcement, but was keen to hear more details about funding for the sector.

The Royal College of GPs has said it supported anything that increased access to healthcare and decreased barriers, but was also concerned GPs did not have the capacity to deal with any increased demand.

Blenheim GP Dr Buzz Burrell, who is also chairperson of advocacy group General Practitioners Aotearoa, did not expect a "flood" on the system, but said the problem was with the system itself.

He praised the announcement, but said general practice was in crisis. He said estimates showed the sector was around 500 GPs short.

"It is a start, it is a gesture. However, what it's doing is basically saying someone else will pay somebody to go and visit their general practitioner under the system as it stands at the moment. And the system at the moment is flawed."

Too many practices were not viable, and were over-enrolling and under-servicing, with hospitals having to pick up the slack, Burrell said.

"If we do have three visits paid for by the government, how much is that going to be? Is it the genuine full cost of seeing a doctor, or is it the subsidised cost? Is it going to be enough, or is it going to be a gesture? It will be nice to know the details of that."

Photo: Elise Manahan/ University of Auckland

Pacific health leader Sir Collin Tukuitonga said three visits a year would be more than enough for some, but for others with more complex needs it probably would not be.

However, he said, the government had to land somewhere and three looked to be the average.

"I like the fact that it's a simple idea. They've targeted one of the pressure points in our health system. They're redistributing the wealth in Aotearoa, so I think on a number of fronts it's a good decision. Time will tell, of course, what happens in practice."

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