22 Aug 2025

Public health group report calls for wealth tax, cross-party focus on wellbeing

1:36 pm on 22 August 2025
silhouette of family on the beach at dusk.

Despite being focused on New Zealanders' health, the report's main focus is on the link between health and the wider environment. Photo: 123RF

A new report by a public health group is calling for a wealth tax and a cross-party focus on wellbeing, saying it's needed to support the health system.

The Public Health Advisory Committee - established by the Ministry of Health - is led by former Green Party MP Kevin Hague, who is a former district health board chief executive, former director of the NZAIDS Foundation (now the Burnett Foundation Aotearoa) and chairperson of the Public Health Advisory Committee 25 years ago.

The committee released the report on Friday morning. It's aimed at reviewing progress in New Zealand health since 2000 and looking ahead to improvements needed out to 2040.

The report warns of "significant new challenges to our wellbeing, at a time when our health system is already over-stretched".

It points to a diverse, growing, and ageing population, an uncertain political situation, increasing effects of climate change and the impact of AI on employment and society.

Despite being focused on New Zealanders' health, its main focus is on the link between health and the wider environment.

"Health starts in our homes, schools and communities," it says. "This report focuses primarily on factors outside health care, as these contribute significantly more than health care to our health and wellbeing."

Wellbeing goals supported by multiple political parties are needed, it says, and urges the government to work with communities to achieve their own solutions.

Strengthening "our bedrock" would require a national conversation about Te Tiriti o Waitangi; embedding human rights into laws and public policy; and developing a more "equitable and redistributive" economic system, it says.

"Further use of income and wealth tax levers is needed to reduce income and wealth inequities, and to support adequate investment in social and health services."

It also demands investment in "win-win solutions that nourish the soil" like finding solutions for the climate crisis and other social problems outside the health system.

It warns of inequities in life expectancy, saying although the gap between Māori and Pākehā has narrowed over 25 years regional differences have worsened.

"A Pākehā baby boy born in Waikato today can expect to live eight years longer than his Māori neighbour. Pākehā children can expect to live to 84 years in the northern region, seven years longer than Pacific peoples' children. This gap has increased since 2000."

Cost of living pressures also make an appearance, with the report highlighting that financial stress was the greatest immediate concern for young people the authors spoke to.

Rising rates of complex long-term conditions like diabetes is coupled with lower physical activity and worsening mental health - particularly among young people - while the ageing population is expected to add further pressure.

Other topics covered include child poverty, education, unemployment, income inequality, racism, ableism, climate change and housing quality.

"Despite absolute gains across many determinants such as income and education, and reductions in some absolute inequalities, there have been limited or no change in the relative differences (privilege or disadvantage) between ethnic and socioeconomic groups for many socioeconomic indicators."

It says large reductions in smoking rates have contributed significantly to reduction in cardiovascular disease, stroke, chronic lung disease, lung cancer and other conditions over the past 30 years, but inequities remain in other health indicators like infant and child mortality in Pacific populations, and "no real change in inequities for Māori and Indian people, compared with all other ethnic groups".

Prime Minister Christopher Luxon said he had not read the report, but dismissed the idea of a wealth tax, saying it was not on the cards.

"I'd just say, a wealth tax is completely the wrong answer for New Zealand," he said.

"New Zealand does not need wealth taxes, or inheritance taxes or capital gains taxes.

"You've heard Chris Hipkins say that he's not sure he's going to rule [capital gains taxes] out on a family home, and the reality is New Zealand at this part, what we need to do is focus on growing the economy, so that we can improve our productivity and lift living standards for all and that's really the focus of this government."

One of the arguments in favour of a capital gains tax is that it would decrease the incentive to invest into housing, making investments into productive businesses comparatively more attractive.

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