‘Literally everything’s taxed’ in Australia - and some across the ditch ‘see NZ as a bit of a tax haven’

Wednesday, 20 May 2026

Labour signals it would introduce capital gains tax if elected, making it a major economic battleground in New Zealand's election campaign.

Australia’s proposed investment tax changes have reignited debate about whether New Zealand could look more attractive to some investors.

Economists have rejected claims New Zealand could become a “tax haven”, while politicians are divided over whether lower taxes should be seen as a competitive advantage.

Capital gains tax is shaping up to be one of the major economic battlegrounds of New Zealand’s election campaign, with Labour signalling it would introduce changes if elected.

Across the Tasman, Australia’s latest Federal Budget has already proposed changes to investment taxes, reigniting debate about whether wealthy Australians could begin looking to New Zealand as a more attractive place to invest.

Australia has had a capital gains tax for about 40 years, alongside other costs such as land tax and stamp duty. But the Anthony Albanese Government’s latest budget proposals, which would increase taxes on some investment earnings, have sparked strong reactions across the country.

Previously investors could have a 50% discount if they owned an asset for at least a year.

This is being replaced by a discount based on inflation and a minimum 30% tax for most, while assets purchased before 1985 are now included in a capital gains tax when they weren’t previously.

Stuff spoke to Australians on Sydney’s Martin Place.

'There’s a tax on everything, there’s a death tax, luxury car tax, literally everything's taxed,' one man said.

'I think it’s viewed negatively,' said another.

'Most people are gonna be unhappy either way. There’s a lot of trade offs involved.'

The changes have also reignited debate about whether New Zealand could become comparatively more attractive to investors.

More comments from Martin Place today:

“I think Australians would see New Zealand as a bit of a tax haven, except for GST.”

“I think the New Zealand Government can also take some lessons from whatever happens in Australia.”

“I think many might see [it] as a prospect to buy property in New Zealand as well.”

But economists say claims that New Zealand could suddenly become a tax haven for Australians may be overstated.

Westpac economist Kelly Eckhold said the idea did not stack up.

“I find it a bit strange… a tax haven is usually a place where people put money to avoid tax, and I would have thought that for Australians, buying property in New Zealand wouldn’t provide much of a shield.”

Labour’s proposed capital gains tax would not begin immediately, but supporters argued it would bring New Zealand more in line with other developed economies.

Labour spokesperson for finance and economy Barbara Edmonds rejected suggestions New Zealand was operating as a tax haven compared to Australia.

“Have a chat to a number of tax practitioners, they’ll tell you we pay more in rates, GST, and other levies.”

Not everyone saw lower taxes as a problem.

ACT leader David Seymour said New Zealand should embrace being competitive internationally.

“It’s not every day I see a headline in the New Zealand media that makes my heart sing. But the fact is, being a competitive place that’s good to work, save and invest is a good thing for New Zealand.”

But the Green Party said becoming a low-tax destination risked creating bigger problems.

Co-leader Chlöe Swarbrick questioned whether New Zealand should attract investment by keeping taxes low.

“Do we really want to be a place that is attractive because you don’t pay tax or contribute? That doesn’t seem to solve the problem.”