Farming groups warn of risks in Opportunity Party land tax proposal
Thursday 1 October 2026 · 2 outlets · 2 reports · updated In this story The Opportunity Party, Federated Farmers
Federated Farmers and other groups have criticised the Opportunity Party's proposed land tax policies. The party suggests an annual tax of 1.75 per cent for urban land and 0.5 per cent for rural land. Critics fear these measures could lead to farmers leaving their land.
Key facts
4 facts
- Proposed rural land tax: 0.5 per cent annually
- Proposed urban land tax: 1.75 per cent annually
- Proposed Citizen's Income: over $19,000 per year for most adults
- Beef + Lamb New Zealand modelling: used over 500 survey farms
The full story
1 min read · 2 outlets
Farming groups have expressed concern that the Opportunity Party's agriculture policies regarding tax and climate could lead to farmers walking off the land. The party proposes an annual land tax of 0.5 per cent for rural land and 1.75 per cent for urban land. These funds are intended to support a Citizen's Income policy and make land ownership more affordable for future generations.
Beef + Lamb New Zealand modelled the tax package across more than 500 survey farms. The modelling found that while some farm types would benefit once the Citizen's Income of over $19,000 per year was included, others would face significant net costs. For example, South Island high country farms could face a net annual impact of approximately minus $41,300 per couple.
Federated Farmers meat and wool chair Richard Dawkins argued the tax targets an asset rather than reflecting profitability or a farmer's ability to pay. He stated, "Taxes like that, it's not related to income - it's simply related to the value of your land and it would see a lot of people become unprofitable".
Opportunity Party deputy leader and agriculture spokesperson Daniel Eb said the policy would include exemptions for conservation land, droughts, or low commodity prices. He noted the tax is intended to be balanced by the Breakthrough Economy Policy, which includes a 25 per cent rebate on investments in new technology.
Compiled from reports by RNZ and NZ Herald.
