Story perspectives

Luxon Drops Bed and Bank Taxes From Coalition Deals

8/24/2026

Summary

Story summary

National Party leader Christopher Luxon announced the bed tax and bank tax will be removed from any coalition deal.
Luxon said National is unlikely to enforce next year’s legislated fuel excise tax increase.
Finance spokesperson Nicola Willis said she will not rule out future ACC levy increases if National returns to government.
Queenstown Lakes District Mayor John Glover called the bed-tax backdown a potential deal-breaker for the council’s tourism agreement.

History

Historical Context

Ruth Richardson’s 1991 “Mother of all Budgets” slashed income tax and removed the tourism accommodation levy, sparking a backlash that cut National’s 1990 18-seat majority to a single seat in the 1993 election and helped drive the switch to MMP. Today, National leader Christopher Luxon echoes that strategy, promising to drop the bed-tax and delay a fuel excise rise to win coalition partners.

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Story summary

National Party leader Christopher Luxon announced the bed tax and bank tax will be removed from any coalition deal.
Luxon said National is unlikely to enforce next year’s legislated fuel excise tax increase.
Finance spokesperson Nicola Willis said she will not rule out future ACC levy increases if National returns to government.
Queenstown Lakes District Mayor John Glover called the bed-tax backdown a potential deal-breaker for the council’s tourism agreement.

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