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 invited Australians who don't like the recent budget changes on capital gains tax (CGT) to move to her country.
New Zealand's National Party's deputy leader told Sky News on Thursday morning that "Australians looking to start or grow a business have an epic opportunity, and that opportunity is to do it in New Zealand".
"No capital gains tax, very simple tax system, broad base, low rate — we keep it simple, we allow you accelerated depreciation and deductibility on your capital investments. And you’ve got a government that is very pro-growth, anti-red tape," she said.
From 1 July 2027, following the recent budget changes, Australian investors who hold a property for more than a year will no longer benefit from the CGT discount rules.
Under the previous budget, Australians selling an asset pay tax on only 50 per cent of their profits, but from the 2027-2028 financial year, the discount will be indexed to 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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