The current Government has said that it will not implement a full Capital Gains tax although it did implement an extension to the bright line tax for land sales which for all purposes was effectively a capital gains tax for land. “The data, based on full income information from 311 of our wealthiest citizens, shows that the average person in this group pays an effective tax rate of just 8.9% tax on their economic income – that is, income from all sources, including capital gains on investments. Jacinda Ardern had ruled out a Capital Gains Tax while she was Prime Minister. Since the 1960s working group after working group have recommended a capital gains tax. Maybe what David Parker is doing is carefully and gradually opening the debate so that the current limited capital gains tax that we have can broadened and expanded.

Source: New Zealand Herald April 27, 2023 14:32 UTC