The NZUS Council welcomes recent steps towards improving New Zealand’s tax policy to better attract and retain global talent. Following on from recommendations in the 2024 NZIER report The Place Where Talent Does Not Want to Live, the Inland Revenue Department (IRD) is now actively exploring options to reduce tax disincentives for expatriates and first-time migrants considering New Zealand as their home.
For New Zealand to thrive in an increasingly competitive global landscape, it must create an environment where skilled individuals and entrepreneurs want to live and invest, which is why, alongside AmCham New Zealand, Auckland Business Chamber, and the Edmund Hillary Fellowship (EHF), the NZUS Council supported NZIER to provide a detailed analysis of how New Zealand’s tax policy impacts migration and to outline key recommendations for reform.
In its latest submission to IRD, NZIER highlights specific changes that could make New Zealand a more attractive destination for highly skilled workers, investors, and returning expatriates. These recommendations include reviewing the foreign investment fund (FIF) rules, which can create unintended financial burdens for new residents, and adjusting tax settings to align with global best practices. Addressing these issues will be instrumental in making New Zealand a destination of choice for international talent.A competitive and fair tax system not only helps attract high-caliber individuals but also drives innovation, fosters economic growth, and enhances New Zealand’s position on the global stage. By reducing barriers to settlement, we can ensure that skilled migrants contribute meaningfully to our communities, industries, and broader economy.
The NZUS Council remains committed to advocating for policies that support a more open, dynamic, and prosperous New Zealand. We are encouraged by the progress being made and look forward to further dialogue with policymakers to ensure these reforms are effectively implemented.
Read the original NZIER report here: The Place Where Talent Does Not Want to Live
See NZIER’s updated submission to IRD here: Getting Closer to Becoming a Place Where Talent Wants to Live