Buying guide
NZ Capital Gains Tax: Labour's Plan and What's Already Law
Watch out – the rules could change in 2027
AI summary
The Labour Party has proposed a new Capital Gains Tax (CGT), potentially starting 1 July 2027, if elected. This would introduce a 28% tax on profits from selling commercial and residential investment properties.
Key exemptions would include the family home, farms, and inheritances. This plan differs from the existing bright-line test, which only targets short-term residential sales.
Property owners are advised to await the election outcome before making changes and seek professional advice if the law passes.
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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