Latest / Best of Business / Jenee Tibshraeny: NZ Herald Wellington business editor speculates ahead of Budget 2026

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Jenee Tibshraeny: NZ Herald Wellington business editor speculates ahead of Budget 2026 · Best of Business

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  Speaker 2: Now.
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  Speaker 3: There is some hope amongst accountants that tomorrow's budget will
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  Speaker 3: do something about a secret little wealth tax for people
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  Speaker 3: who have offshore investments. The Herald's Wellington Business editor Jene
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  Speaker 3: TIBs Trainey's been looking into it, hygenate, Hey, do you
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  Speaker 3: reckon they're going to do so? This is the fifth
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  Speaker 3: isn't it.
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  Speaker 2: It is the fifth regime.
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  Speaker 3: Yes, it's going to do anything about it.
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  Speaker 2: Well, possibly so. Not too long ago, the government actually
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  Speaker 2: changed the law a little bit to make tax rules
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  Speaker 2: a bit softer for recent migrants to New Zealand who
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  Speaker 2: have large investments offshore. Previously, for those people and for
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  Speaker 2: most of us, if we have more than fifty thousand
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  Speaker 2: dollars invested in shares and companies offshore, then the way
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  Speaker 2: that we pay tax on there is we pay tax
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  Speaker 2: on a certain portion of the value of that investment
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  Speaker 2: and if we don't actually make any money from that investment,
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  Speaker 2: so that is actually a bit like a wealth tax.
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  Speaker 2: People accountants don't like this, Investors don't like it because
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  Speaker 2: it's a bit of a headache. That regime is different
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  Speaker 2: to the regime we use if we pay tax on
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  Speaker 2: our investments in New Zealand. So it's complicated, and I
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  Speaker 2: mean it's also difficult because if you're not making any
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  Speaker 2: money from your investment offshore, but you're still having to
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  Speaker 2: pay tax on what it's worth, that can be quite difficult,
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  Speaker 2: especially for the investment's worth a lot. So this is
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  Speaker 2: something the government's well aware of. As I said before,
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  Speaker 2: it has changed the rules a little bit to help
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  Speaker 2: those wealthy migrants because they can be hit quite hard
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  Speaker 2: by it. But I guess accountants are already looking at
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  Speaker 2: whether you're at the budget the government does change the
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  Speaker 2: rules even more to benefit New Zealanders with big investments
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  Speaker 2: off shore.
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  Speaker 3: I mean Robin Walker. I feel like Robin's been talking
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  Speaker 3: about it for quite a long time and hoping every
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  Speaker 3: budget that is going to happen. But Simon Watts doesn't
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  Speaker 3: sound like he's doing much on this, does he.
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  Speaker 2: Yeah, this is a big Robin Walker and actually same
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  Speaker 2: with her other accountants in the sector. I asked the
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  Speaker 2: minister on Tuesday. He said, we're looking at options to
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  Speaker 2: attract and retain capital and attract and retain talent. He
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  Speaker 2: can't say much more but that the work is ongoing.
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  Speaker 2: So in then, Revenue did a consultation last year, which
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  Speaker 2: is what makes me think something might come of this.
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  Speaker 2: And you know, there is even if the government didn't
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  Speaker 2: want to change the rules to help us with our
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  Speaker 2: investments overseas, there is still room for it to tweak
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  Speaker 2: the rules a bit more to help the wealthy foreigners
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  Speaker 2: that were so desperately trying to attract. So it might
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  Speaker 2: be that.
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  Speaker 3: That's a fair point. Yet do you know of any
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  Speaker 3: secret things in the budget at all?
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  Speaker 2: You know, I don't think. I felt like last year
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  Speaker 2: we picked the key we saver changes and some of
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  Speaker 2: the the like basically investment boost but this year feeling
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  Speaker 2: kind of less. I'm less sure, and I guess the
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  Speaker 2: government has much less money to work with, you know,
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  Speaker 2: if it wants to stick to its tight operating allowance.
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  Speaker 3: I see Luke Malpas trying to call it the boomer budget.
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  Speaker 3: Are we going with that?
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  Speaker 2: Oh gosh, actually, here the here's one for you, the
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  Speaker 2: winter energy payment. You know, could that be more targeted?
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  Speaker 2: I understand that everyone on super receives that, so you know,
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  Speaker 2: we talked. You know, you put a bit of pressure
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  Speaker 2: on the government in terms of the fees free tertiary
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  Speaker 2: and and that's that's scrapping that in the third year.
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  Speaker 2: But wait, are you?
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  Speaker 3: Are you telling me there's something about the winter energy
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  Speaker 3: payment tomorrow or you you lining me up to start
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  Speaker 3: working on it for next budget.
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  Speaker 2: But you're realizing this forum.
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  Speaker 3: You do know I'm married to a pension is so
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  Speaker 3: I am the indirect beneficiary of a winter energy payment.
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  Speaker 2: So yeah, conflict of interest is a conflict of interest
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  Speaker 2: note that noted.
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  Speaker 3: No, but I really love that you you you think
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  Speaker 3: that I've got the power. I'll give it a hon
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  Speaker 3: why not. Let's get rid of it. See if we
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  Speaker 3: can means test it. Appreciate it. Jane, see you there tomorrow.
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  Speaker 3: Age and a Tips Trainiy the Herald's Wellington Business editor.
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