Australia is resilient, has one of the largest sovereign wealth funds in the world, and will navigate this. But for New Zealand, the moment creates an opening we should not waste – let’s be innovative, leverage our unique settings, and make a compelling case to capital and talent on the move.
Our starting position is stronger than we often give ourselves credit for. New Zealand has no general capital gains tax on things such as shares, business exits, or equity. This is a deliberate feature of our tax system and this is a no-brainer in a modern economy.
New Zealand is open for business and has the potential to attract founders to build companies here rather than in Australia. Photo / Supplied
It means that people who take the big risks of creating productive assets get the rewards. It also realises the new economy, which sees employees partake in their business’ success through employee share options and the democratisation of investing through apps such as Sharesies.
Beyond tax, New Zealand ranks fourth among the least corrupt countries in the world, and 11th on the global Index of Economic Freedom. The World Bank has ranked New Zealand first among 190 economies for ease of doing business. It takes a day to set up a company, we have one of the best broadband networks in the world, and globally connected transport hubs.
New Zealand’s trade agreements give businesses headquartered here preferential access to markets covering about 70% of our exports. For anyone building a global company, that is a meaningful structural advantage that rarely gets talked about.
New Zealand’s small domestic market also forces founders to think globally from day one, so that constraint becomes a capability. There is a growing cohort of genuinely world-class companies that didn’t build only for New Zealand.
That instinct is one of the reasons our tech ecosystem has grown more than six times in value since 2019, outperforming Australia, Ireland, Israel and Sweden. In venture-backed enterprise value per capita, we generate $24,000 compared to $16,000 for Australia – so we’re already punching above our weight – our present settings are clearly doing something right!
Founders who relocate don’t just bring themselves – they bring teams, capital, customers and the compounding economic activity of companies that employ highly skilled people, pay real wages and invest in the local ecosystem. The maths on welcoming them is straightforward.
In January 2025, the Government established Invest New Zealand, a dedicated agency designed as a single point of contact for prospective overseas investors navigating local regulation and business set-up, and they also created new investor visa categories.
Prime Minister Christopher Luxon’s Goverment has created a dedicated agency designed as a single point of contact for prospective overseas investors. Photo / Mark Mitchell
Ireland built a global tech hub through deliberate policy and relentless promotion. Singapore actively recruits founders with its zero CGT regime. The United States offers QSBS – paying zero federal capital gains tax on exits up to US$10 million ($17m). New Zealand could be that answer for founders, risk takers and builders looking for a safe place for people and capital.
Visa and immigration settings have improved but should go further, including for those arriving with existing offshore assets. We need to make it genuinely frictionless for someone with capital, a team and a track record to establish here quickly.
The tech ecosystem has grown more than six times in value since 2019. Photo / Getty Images
The talent they bring with them – engineers, product leaders, operators – are exactly the people we need more of. We need to continue investing in the innovation ecosystem.
We should also be deliberate about our renewable energy advantage, actively building additional energy capacity and the data centre and AI infrastructure narrative around it.
While Australia considers its settings, New Zealand should resist any temptation to follow and should now double down on the things we already do well. This isn’t about protecting the wealthy; it’s about making sure the next billion-dollar company gets built here rather than somewhere else.
People are looking for a place where ambition is welcomed, where the infrastructure to build a global company exists, and where the quality of life justifies uprooting a team and a family – New Zealand can be that place.
As Australia tightens CGT, New Zealand is in a strong position to pitch itself as a founders’ haven. Photo / 123rf
There’s a lot of “doom and gloom” about New Zealand’s economy, but we need to break that spiral. We have a lot to work with, many of the right settings, and a unique proposition for talent and capital – we just need to surface the confidence, optimism and energy.
So while our next-door neighbours are fumbling the ball, let’s make some noise: “New Zealand is open for business – come build something here”.
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