In New Zealand, capital gains tax debates spring up like zombies. Each time they get killed off, back to life they come.
New Zealand already has some types of capital gains taxes – such as the bright-line test (which taxes residential land bought and sold within two years) and taxes on other various activities. So the debate is more about expanding taxes on capital gains, rather than introducing a new tax.
ANZ’s chief executive Antonia Watson triggered the latest furore this week when she argued since people invest in housing for the purpose of realising capital gains, those gains should be taxed.
