New Zealand has called on Australian investors and businesses in a cheeky message to jump across the ditch following sweeping tax hikes in Australia’s federal budget.
Finance Minister Nicola Willis struck a light-hearted tone on Friday, invoking a famous Australian tourism slogan as she extended the invitation.
“Where the bloody hell are you? Come over!” she said, echoing Australia's 2006 campaign line.
Her comments came after Australian Treasurer Jim Chalmers unveiled major tax hikes to family trusts, capital gains tax (CGT) and negative gearing, breaking a prior election commitment not to alter the settings.
Under the tax hikes, the 50% CGT discount for assets held longer than a year will be replaced by an indexation model from July 2027. Investors would instead pay tax on gains at their marginal income tax rate, up to 47%, with a 30% floor.
The budget also targets discretionary trusts, commonly used by small businesses, tradies and investors.
From July 2028, income generated within such trusts will be taxed at 30% before distribution, with a non-refundable credit applied to beneficiaries.
In some cases, including where beneficiaries are legal entities, the changes could result in unusually higher effective tax rates of over 60% due to the interaction with other tax settings, experts say.
The changes have prompted criticism from some investors, startup founders and business groups, with comparisons drawn to New Zealand, which does not have a comprehensive capital gains tax.
Willis embraced that contrast in her remarks.
“You’re welcome to come and invest in New Zealand. We do not have a capital gains tax. Our inflation rate is lower,” she said.
“This is a government that isn’t planning to raid you with more taxes. We would love to welcome more Australian investors.
“We would love to welcome home many more Kiwis. We would love Australians to look at us as a place to invest their talent, their time and activity. So, yes.”
New Zealand’s inflation rate stands at about 3.1%, compared with around 4.6% in Australia, according to official data.
