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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, which applies to residential properties sold within two years. The Labour Party has proposed a new capital gains tax if elected, starting 1 July 2027.
The proposed tax would apply a 28% rate on profits from selling commercial and residential investment properties, exempting the family home. Proponents argue it creates a fairer system, while critics highlight compliance costs. Property owners should monitor the election before acting.
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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