Aussie investors eye New Zealand after sweeping CGT changes, SMSF ban: ‘Retirement plan’

The federal government’s capital gains tax discount and ban on SMSF residential lending is pushing more Aussie investors to look for opportunities across the ditch. Unlike Australia, New Zealand does not have a broad capital gains tax on investment properties, nor does it impose stamp duty on property purchases.

Kitty Parker, founder of Sydney-based buyer’s agency Kitty & Miles, told Yahoo Finance she’d seen a “spike” in enquiries from Aussie investors looking to buy in New Zealand following the tax and lending changes. Parker purchased an investment property in New Zealand herself last year and is now purchasing a commercial property in the country.

“I was looking for areas for clients that had lower entry-level price points and were more affordable for the average Aussie property investor, similar to how pricing was pre Covid in Australia,” she said.

RELATED

“New Zealand, being right next to Australia, afforded really good options for entry-level Aussie investors.

“There’s no stamp duty, a very stable economy and a very strong Aussie dollar compared to New Zealand dollars, and really good rental yields in certain pockets.”

Parker’s first investment property in Bay of Plenty was purchased for $NZ1.6 million about 18 months ago. 

The commercial property she is purchasing is located in Waikato and has a price of $NZ88,000, with a $380 per week tenant and a 24 per cent rental yield.

“The Bay of Plenty one is capital growth, this commercial one is primarily for rental yield and I see it as a retirement plan,” she explained.

Spike in enquiries for New Zealand loans

Non-bank lender Pepper Money New Zealand said it has recorded a sharp spike in enquiries from Aussie investors seeking finance for New Zealand property purchases post budget, with buyers seeing it as a “safe-haven destination”.

At one broker partner, for example, initial enquiries rose by 650 per cent in late May. This was up from a low average of two enquiries per month to 15, with numbers now steadying at 12 per month.

Pepper Money New Zealand Country Head Campbell Smith told Yahoo Finance enquiries across the board had increased “almost overnight” and remained elevated.

“In terms of what our network is seeing, it’s broadly ten times what we would normally see or would have seen prior to the announcement of the Australian federal budget,” Smith said. 

“These consistent inquiries suggest to us that this is going to be an ongoing appetite rather than an anomaly.”

While it’s “still early doors”, Smith said the lender had transacted on a number of enquiries and moved through to settle the loans in New Zealand. 

“What we are seeing is that they are typically seasoned investors. They have an existing portfolio of various sizes and scales in Australia and they are looking to diversify in New Zealand, not least of which because our house prices are stable and reasonably attractive,” Smith said.

“But, of course, there is quite a favourable tax environment here in New Zealand as it relates to stamp duty and capital gains tax.”

New Zealand uses a “bright-line” test to work out whether gains on the sale of residential properties attract tax.

Under the current rules, profits on residential properties held for more than two years are typically not subject to tax, although some exemptions apply. This was reduced from the previous 10 years in 2024.

Smith said a lot of enquiries were targeted at lifestyle properties, with particular volume out of Queenstown, Wanaka, Central Otago, greater Auckland and greater Christchurch.

Parker, meanwhile, said she was getting enquiries from “mum and dad investors” who had been priced out of the property investment market in Australia, with the SMSF residential lending changes the final “nail in the coffin”.

“What I’m noticing is an influx of commercial property inquiries, purchasing in a self-managed super fund in New Zealand,” she said.

“They’re going, well, I can borrow to purchase commercial. Do I buy commercial for my retirement in a self-managed super fund somewhere where it’s going to cost me $800,000 to get in, or do I go to New Zealand where it might cost me $500,000 to get in?”

‘Come over’: New Zealand tries to lure Aussie investors

It comes after New Zealand Finance Minister Nicola Willis invited Aussies to jump across the ditch following the tax changes, telling Aussies: “Where the bloody hell are you? Come over!”

“You’re welcome to come and invest in New Zealand. We do not have a capital gains tax. Our inflation rate is lower,” Willis, who is deputy leader of the country’s National party, said.

“This is a government that isn’t planning to raid you with more taxes. We would love to welcome more Australian investors.”

New Zealand property values are still 17.5 per cent below their peak in early 2022, according to Cotality NZ data, with the national median value sitting at $NZ806,512 in June. 

Values were down 0.2 per cent from the previous month in June and down 0.9 per cent from a year ago. 

New Zealand has been grappling with an exodus of its citizens. Stats NZ data shows 63,000 New Zealand citizens left the country in the 12 months to May 2026.

In the December 2025 year, 64 per cent of New Zealand citizen migrant departures were to Australia.

GDP per capita in Australia is about $US64,400, according to World Bank data, compared with about $US48,800 in New Zealand.

Aussies urged to do due diligence

Smith encouraged Aussies considering New Zealand investment to do their due diligence.

“Procuring advice from an experienced advisor who has a good understanding of the New Zealand market will be fundamental to making the right investment decision,” he said.

Parker began purchasing in New Zealand prior to the tax changes and has a portfolio of eight properties, with most located in Australia. She said the tax changes would not impact her strategy.

“I see property investment as a really long-term game and because of that I’m pretty experienced with weathering changes in government policy. So to me, it doesn’t change a lot,” she said.

“If you’re looking to hold a property for 10, 20, 30 years, you will make great capital growth and whether you pay 30 per cent tax in capital gains tax, or whether over that time you were afforded the 50 per cent discount on your gains, at the end of the day, you’re gonna make substantial money.”

She believes those looking to make a “fast buck” will be the ones impacted the most.

“I think that’s actually a good thing because I feel property over the last few years has become highly commodified,” she said.

“It will weed out those folks and really keep the more strategic, long-term investors that are here for the long game, whilst also affording a much better entry-level for first-home buyers.”

Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.