Federated Farmers warns Opportunity Party's land tax could hurt profitability

The Opportunity Party has unveiled a land-value tax of 1.75% on urban parcels and 0.5% on rural holdings, intended to make land ownership more affordable and finance a Citizen's Income. Federated Farmers' meat and wool chairman Richard Dawkins says the levy, which he estimates would cost an average sheep and beef farm about $40,000, does not reflect profitability and could push many farms into loss. Beef + Lamb modelling of 500+ farms predicts the tax would raise roughly $395 million, while the Citizen's Income would cost about $355 million, leaving high-country farms with a net annual deficit of around $41,300 per couple.

The party also pledges a 35-47% methane-reduction target by 2050, a cap-and-trade or levy system, and a 25% rebate for farm technology investment. Deputy leader Daniel Eb says exemptions would apply for conservation land and drought-affected farms, and stresses the tax is meant to replace a 40-year-old system.