Employment Minister Amanda Rishworth has dismissed criticism of Australia’s capital gains tax (CGT) after New Zealand Prime Minister Christopher Luxon described it as a “wrecking ball tax” that he would never introduce. The remarks came during a meeting between Luxon and Prime Minister Anthony Albanese in Noosa on Saturday.
Speaking on Sky News on Sunday, Rishworth emphasized that the two nations operate under distinct tax regimes. “We’ve got two different countries with two different tax systems,” she said. “Capital gains tax has existed in our country for a very long time. There have been changes along the way, and we are looking at capital gains to rebalance it and make it fairer.” She added, “I don’t think you can compare apples with oranges when we’re talking about different tax systems and different countries.”
Luxon’s Remarks
During the annual meeting, Luxon stated that within New Zealand’s domestic context, there has been a long-running debate over the merits of introducing a CGT. “We’ve got a recovery underway, and we think introducing a CGT to New Zealand now would be a wrecking ball for our economy,” he said. He stopped short of commenting on Australia’s planned changes to its CGT discount, which Labor has committed to slashing, noting differences between the two economies.
Political Reactions
Rishworth described the meeting between the prime ministers as “warm” and a demonstration of the strong relationship with New Zealand. “But I wouldn’t suggest it was a shot across the bow,” she said. “Both leaders are operating in completely different tax systems in their countries.”
Shadow treasurer Tim Wilson, however, offered a contrasting view, accusing Luxon of “coming here to raid the prosperity of the future of Australia” and claiming that Albanese had “handed it on a platter.” The Albanese government has faced fierce opposition from the Coalition over its proposed changes to CGT and negative gearing. The Coalition has vowed to fight the measures in the Senate and repeal them if elected in 2028.
