Labour leader Chris Hipkins believes AUKUS is not in New Zealand's best interest.

His party has ruled out joining the transnational pact between Australia, the UK, and the US.

The current Government's considering joining pillar two of the agreement - with non-nuclear aspects.

Chris Hipkins told Mike Hosking we should continue to have good, strategic relationships – and recognise some other partners are not happy with AUKUS.

“If you look at the way it’s perceived internationally, including in our region, it’s perceived as part of the polarisation of geopolitics in our region.”

Meanwhile, the idea or a capital gains tax was also talked about.

Hipkins says we're closer to seeing public appetite for reform.

“When we started talking about this 15 years ago as the Labour Party, we were the only people talking about it. Now everybody’s saying actually New Zealand’s tax system needs reform.”

LISTEN ABOVE