NZ's Open Door: Turning Australia's Loss Into Gain
When success becomes more expensive, you get less of it. That's not ideology speaking; it's basic economics. You don't just lose the tax revenue from those who depart. You lose the companies they would have built, the jobs they would have created, and the culture of ambition that sustains innovation ecosystems.
Australia is resilient, with one of the largest sovereign wealth funds globally, and will navigate its current policy direction. But for Aotearoa New Zealand, this moment creates an opening we cannot afford to waste. Let's be innovative, leverage our unique settings, and make a compelling case to capital and talent on the move.
A Starting Position Worth Celebrating
Our foundation is stronger than we often acknowledge. New Zealand has no general capital gains tax on shares, business exits, or equity. In a modern, inclusive economy, this is a deliberate and strategic feature of our tax system.
It means people who take the big risks of creating productive assets receive the rewards. Crucially, it also enables the new economy where employees partake in their business' success through share options, and investing is democratised through platforms like Sharesies. This is wealth creation that extends beyond the few, and it matters.
The Structural Advantages We Rarely Discuss
Beyond tax, New Zealand ranks fourth among the least corrupt countries globally and 11th on the Index of Economic Freedom. The World Bank has ranked us first among 190 economies for ease of doing business. Setting up a company takes a single day. Our broadband network ranks among the world's best, and our transport hubs connect us globally.
Our trade agreements give businesses headquartered here preferential access to markets covering roughly 70% of our exports. For anyone building a global company, that is a meaningful structural advantage that deserves more attention.
New Zealand's small domestic market also forces founders to think globally from day one. What looks like a constraint becomes a capability. A growing cohort of genuinely world-class companies didn't build only for New Zealand.
Punching Above Our Weight
That instinct is one reason 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. Our present settings are clearly doing something right.
Founders who relocate bring more than 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.
Building Momentum
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. New investor visa categories were also created.
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.
Where We Must Go Further
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 talent they bring, 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. Aotearoa's clean energy capacity positions us uniquely for the data centre and AI infrastructure the world will demand. This isn't just an economic opportunity; it's an ecological one. Building green infrastructure that attracts global investment aligns prosperity with planetary responsibility.
Doubling Down, Not Following Suit
While Australia considers its settings, New Zealand should resist any temptation to follow and instead double down on what we already do well. This isn't about protecting the wealthy. It's about ensuring the next billion-dollar company gets built here, creating jobs, opportunity and shared prosperity.
People are looking for a place where ambition is welcomed, where the infrastructure to build a global company exists, and where quality of life, rooted in natural beauty, social openness and cultural diversity, justifies uprooting a team and a family. New Zealand can be that place.
There's plenty of doom and gloom about our economy, but we need to break that spiral. We have much 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 neighbours are fumbling the ball, let's make some noise. New Zealand is open for business. Come build something here.