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NZ Capital Gains Tax: Labour's Plan and What's Already Law
Watch out – the rules could change in 2027
AI summary
New Zealand has a 'quasi' capital gains tax called the bright-line test for residential properties. The Labour Party has proposed a new CGT starting 1 July 2027, if elected. It would apply a 28% tax on gains from commercial and residential investment properties sold after this date.
The family home, farms, and KiwiSaver would be exempt. Supporters believe it creates tax fairness, while critics worry about compliance costs. Property owners should await the election outcome before making any decisions.
In this article you’ll learn:
What is a capital gains tax?
Does NZ already have a capital gains tax?
What happens in here (and in voting booths) will ultimately decide whether or not we end up with a more broad CGT.
A closer look at Labour’s capital gains tax proposal
The case for a capital gains tax in NZ
The family home is exempt from Labour's proposal.
The case against a capital gains tax in NZ
Against a capital gains tax generally
Against the details of Labour’s plan
I own a property, what should I do now?
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