October 29, 2025

Group supports capital gains tax, warns of strain on clinics

group supports capital gains tax, warns of strain on clinics
Photo source: Felipe Queiroz

A prominent doctors’ association supports Labour’s proposal for a capital gains tax to finance three free GP visits, but they worry that currently overburdened GPs and clinics may struggle to manage the additional demand.

Labour has pledged to advocate for a capital gains tax (CGT) targeting only property, excluding family homes and farms, to fund three free doctor visits for every Kiwi.

Labour revealed its policy after details were leaked over the long weekend. Labour Party leader Chris Hipkins has firmly warned that any member responsible for leaking information about the party’s capital gains tax (CGT) policy will be dismissed from their role.

Every Kiwi would be issued a Medicard at birth or when granted residency or citizenship. This card would be linked to existing GP systems to monitor entitlements and usage.

Dr Luke Bradford, President of the Royal New Zealand College of GPs, said they support anything that improves healthcare access and reduces obstacles.

“We’re pleased to see the acknowledgement that the best way to keep people well is to have regular contacts with their general practice and general practitioner.”

However, he said the main concern is that GPs will lack the capacity to handle the increased demand as more people seek to see their doctors more frequently.

“Currently we can’t meet the demand that’s already there. We’re struggling to recruit and retain our healthcare teams, and there is nothing in this policy that states specifically how we will manage that, how we will bring more doctors and nurses into the workforce to see these patients.”

Labour’s Health Spokesperson Ayesha Verall said that after consulting with the industry, she believed they could free up 4.5 million appointments.

For Bradford, the number was “ambitious.”

“There’s some stuff in the policy around the use of AI for note-taking and for some phone triaging, and certainly there are some benefits to having that, and we will see efficiencies come on board, but it’s not going to meet the demand here.

“Three funded appointments for 4.2 million over fourteen in the country, 12.5 million appointments – that’s a lot considering that a lot of these will be extra.”

Bradford said while doctors are currently using Scribe, an AI program that assists with note-taking and saves approximately two minutes per consultation, that would barely free up sufficient time for the additional appointments.

“What we need to do is make the career more attractive and get more junior doctors and international doctors into this great profession.

“If you want this policy, you’re going to have to resource the staff; to resource the staff, you’re going to have to get to the point where GPs aren’t burning out and they want to train as GPs, so that’s going to take some work.”

He also expressed support for Labour’s aim to establish an independent pricing authority to ensure sustainable funding for general practice.

“As it is, recommendations come from an independent body, and then they go to Te Whatu Ora, and then Te Whatu Ora decides how much they can afford of that recommendation, and that’s what’s seen successive below-inflation price increases,” Bradford said.

“The issues for the independent body, as I understand it, will instruct Te Whatu Ora what the price increases will be. So if we can get the settings right for it, then I think that’s a positive move.”

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