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What will be the rate of Labour’s Bed Tax?

15 October 2026Simeon Brown

What will be the rate of Labour’s Bed Tax?

Kiwis deserve to know exactly how much more their holidays will cost under the Bed Tax now supported by Labour, the Greens and the Opportunity Party, Simeon Brown says.

“Despite claiming their only new tax is a Capital Gains Tax, Labour has also committed to passing legislation enabling councils to implement a Bed Tax, with Barbara Edmonds confirming as such in last night’s ASB Great Debate.

“Last night, Barbara Edmonds said, ‘[councils] must lead it, you must tell us what to do.

“Councils do not currently have the ability to implement such a tax, so Labour would need to draft legislation to allow it. In doing so, it would need to lay out key details, like the rate of tax councils can charge and which forms of accommodation would be taxable.

“Now that its coalition partners in the Greens and Opportunity have signed on, it’s time to explain to New Zealanders how the tax will work and how much it will cost.

“Labour needs to lay out this detail before the election or Kiwis will not know what they’re voting for.

“What will the maximum rate councils be able to charge? Will it be a proportion of the cost of the accommodation or a flat rate? Will it affect campgrounds, AirBnBs and DOC huts? Would there be exemptions for hospital-related stays, funerals or those fleeing natural disasters?

“A Bed Tax will be paid for by locals. It will be paid for by New Zealanders booking a weekend away, going to a sports event, a family funeral, or to visit friends.

“You can not go into an election committed to another layer of tax without telling anyone how much it could be or what it could apply to.”