Updates & Articles

Does New Zealand really have no capital gains tax?

  • Share

Some people say that New Zealand should have a capital gains tax. Other people say that we already tax capital gains, so it wouldn’t make any difference. So do we have a CGT or not?

No, but…

We don’t have a single, comprehensive capital gains tax, and although the Tax Working Group recommended one, the Prime Minister ruled it out in 2019.

However, we do tax some types of capital gains, particularly those from the sale of investment properties. The bright line test is a tax on capital gains that applies only to property.


Which capital gains are taxed?

Capital gain is the profit you make when you sell an asset. You will pay tax on the gains you make on some assets, including:

  • Any gains from the sale of a property that is not your family home, if you have owned for less than 10 years (with some exceptions). This is the bright line test; you can read more about it here.
  • Any gains you make on the sale of foreign shares over $50,000.

Which capital gains are not taxed?

Some capital gains remain untaxed, including:

  • Any profit from the sale of your family home.
  • Any profit on the sale of another property you have owned for at least 10 years (with some exceptions under the bright line test).
  • Any KiwiSaver fund gains, and gains on other managed funds, index funds and PIE funds.
  • Any gains made from the sale of most New Zealand and Australian listed shares.
  • Any gains you make on selling collectibles like wine, art and cars.
  • Any profits you make selling items casually on TradeMe or any other online platform.
  • The sale of your business

How this applies to your situation

Everyone’s tax situation is unique, and these rules can be confusing. We’re here to help you wade through the intricacies of it, so you don’t pay more tax than is required. Get in touch if you have questions about tax on capital gains, or any other tax.


We’d love to hear from you!

The Maritime Museum Foundation has enjoyed a significant long term relationship with the team at Lynch & Associates. They continue to provide our board with outstanding professional service and sage advice. I would unreservedly recommend their accounting, audit and advisory services.”

Eric Mahoney, Chairman, Maritime Museum Foundation

Lynch & Associates have been our accountants since 2018. Through that time their friendly and approachable team have guided us and made good, clear recommendations for our theatre company for children. Their support and advice continue to help create a stronger, more sustainable charitable organisation. 

Tim Bray, QSM, Trustee and Artistic Director, The Operating Theatre Trust

It has been a pleasure working with Errol Burn and the team at Lynch and Associates, their insight, intelligence and in-depth knowledge of the social impact sector has allowed the Sir John Kirwan Foundation to flourish and grow.  Fully supporting the Foundation in all of its financial needs, Lynch and Associates have never failed to deliver, always providing calm, thoughtful advice together with encouraging us to consider every aspect, to ensure maximum benefit.

Nikki Flexman, Head of Growth, Sir John Kirwan Foundation

We have used Lynch and Associates services for over 15 years and have always found them to be a very friendly, helpful and professional team. They also really care about us and our business, as they went out of their way to assist us during difficult times. We have also used their professional business services that proved invaluable in helping us to get through a rough patch and refocus our efforts. Their approach to business services was understanding of our situation but well blended with firm encouragement to address issues and make strides towards improvement. We highly recommend them for both their accounting and professional business services.

Darryn Smith, Director, Multicolour Screen Printers Limited

A huge “Thank You” and shout out to the team at Lynch & Associates for all the consulting and accounting services they have done for my wife and I over the past 12 years. The team have work diligently on both trusts and a number of companies for us over this time and long may this continue. It is so great to engage with a professional proactive team that results in no sudden surprises at the end of the tax period. We look forward to the catching up soon and hearing what is new and how else we can move forward faster financially.

John and Shelley Bishop 

We believe in putting people first and sharing our knowledge and experience to help our clients achieve success in business and life. If you think we could be a good fit for your accounting needs, please get in touch.

Contact Us

Phone +64 9 366 6005
Email: admin@laaca.co.nz


B:HIVE, Smales Farm
74 Taharoto Road, Takapuna
Auckland 0622
New Zealand

© Lynch & Associates Chartered Accountants

Website by Designer Digital