IN BRIEF
- New Zealand’s National Party’s deputy leader has invited Australian business owners to move there.
- It comes after Labor announced changes to CGT in the recent federal budget.
New Zealand’s finance minister, Nicola Willis, has extended an invitation to Australians dissatisfied with the latest changes to their capital gains tax (CGT) policy, suggesting they consider relocating to New Zealand.
In a conversation with Sky News on Thursday morning, the deputy leader of New Zealand’s National Party highlighted the enticing prospects for Australians eager to establish or expand a business. “The opportunity to flourish is right here in New Zealand,” she enthused.
Willis elaborated on the benefits, pointing out the absence of a capital gains tax in New Zealand, a straightforward tax framework, and a low-rate, broad-based system. “We simplify things, offering accelerated depreciation and deductibility on capital investments, and boast a government that champions growth and minimizes bureaucratic hurdles,” she added.
As part of recent budget reforms, starting July 1, 2027, Australian investors who hold property for over a year will lose access to current CGT discount benefits.
Previously, Australians selling assets were taxed on only half of their profits. However, starting from the 2027-2028 fiscal year, these discounts will be adjusted in line with inflation.
Investors will also be forced to pay a minimum of 30 per cent on any gains.
The reforms are part of a broader plan to boost the supply of new homes by incentivising investors to buy new builds rather than established properties.
Critics argue that changes to CGT discounts could negatively affect startup founders and small business owners.
“We’re on a reforming mission to make this one of the best places in the world to do business,” Willis said.
Then she had a question to Australians: “Where the bloody hell are you? Come over.”
Her question appeared to be a reference to the slogan from a 2006 Australian tourism campaign aimed at international visitors.
New Zealand does not have a comprehensive CGT. Some profits that would normally be considered as CGT are taxed as income under the country’s tax laws.
In New Zealand, the nearest equivalent to CGT is the bright-line property rule, which taxes any profit from selling a property bought and sold within two years.
The country’s Labour Party plans to introduce CGT in a broader form, a move that New Zealand’s coalition government is strongly opposed to, as the country gets closer to its 7 November election.
The election has been impacted by Australian politics.
Labour leader Chris Hipkins is borrowing from Anthony Albanese’s successful 2025 campaign in several ways.
Hipkins has announced every Kiwi will receive a new national “Medicard” that will give free healthcare, saying Kiwis will need that and “not your credit card” when they go to GPs, a direct line from Albanese’s campaign.
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