New Zealand is making a bold pitch to Australian business owners unhappy with Labor’s proposed budget. The country’s finance minister, Nicola Willis, on Thursday morning said Australians have an “epic opportunity” to instead start or grow their business in New Zealand.
Willis, also the deputy leader of the NZ Nationals Party, noted Labor’s changes to capital gains tax in the budget as a selling point for entrepreneurs to cross the ditch. Currently, Australians selling an asset pay tax on 50 per cent of their profits, which will be changed to be indexed to inflation from July 1, 2027.
“No capital gains tax, very simple tax system, broad base, low rate,” Willis told Sky News. “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.”
Zara Seidler, co-founder of The Daily Oz, told Sunrise the threat of losing Australian businesses was realistic. “I’m a female founder and in the past few days I’ve heard former prime ministers suggest that the CGT discount is for used car salesmen and dodgy operators,” she said. “It’s continuing this narrative that it’s not a good place to want to build your company and to innovate.”
A poll of The Daily Oz audience found 67 per cent don’t think the budget will help young people, with the shares issue proving a major sticking point. ASIC data shows 18 per cent of young people have shares and 23 per cent have cryptocurrency. “A lot of younger people have given up saving for a house deposit. They think it’s just not in their future. But they want to create wealth,” News.com.au deputy editor Liz Burke told Sunrise. “Shares look to be the only way. And now it feels like that’s been taken away.”
