Anthony Albanese waters down criticism of CGT as Australia signs new trade agreement with New Zealand
Anthony Albanese has laughed off claims of bad blood between Australia and New Zealand after a “cheeky” comment about the Australian budget.
The Prime Minister and his New Zealand counterpart Christopher Luxon spoke in Noosa on Saturday following the signing of a new agreement between the two countries.
After Finance Minister Jim Chalmers handed over the federal budget in May, Mr Luxon was asked about the finance minister’s latest move.
Mr Albanese intervened as he tried to dispel speculation of hostility between the two countries.
“We have a relationship that is often a bit playful,” Mr. Albanese joked.
“The Wahs (New Zealand Warriors) have signed our players, but we also have a few Kiwis in Australia – 638,000 of them – or an eighth of New Zealanders living here.
“It’s a good relationship, sometimes there can be a bit of arrogance in the relationship and that can last for a long time.”
After the Albanian government announced it would scrap the 50 per cent reduction in the capital gains tax concession, New Zealand finance minister Nicola Willis jumped on the changes.
“Australians looking to start or grow a business have an epic opportunity, and that opportunity is to do it in New Zealand,” he said.
“No capital gains tax, very simple tax system, broad base, low rate, we keep it simple, we provide accelerated depreciation and deduction on your capital investments.
“And you have a pro-growth, anti-bureaucracy government.”
Mr Luxon said the finance minister’s comments were not an attack on the Albanian government.
“His comments were really in the context of the debate within the country, rather than commenting on the CGT in Australia,” he said.
“The Prime Minister addressed the issue, it was done in good humour, and yes it was flippant, but the important thing is that we do not comment on each other’s domestic economic policies because there are different contexts and histories and he did not do that.”
According to the new agreement signed between the prime ministers, there are eight actions to increase economic efficiency in both countries.
Mr Luxon said the deal would ensure the defense partnership “remains fit for purpose”, while also continuing cooperation with Pacific neighbors and building greater security and resilience through technology to boost productivity.
He added that the agreement would strengthen the next phase of trans-Tasman science cooperation and provide “clear opportunities” for participation in the construction of the Brisbane 2032 Olympics and help raise the tourism and infrastructure profiles of both countries.
Mr Albanese said the meeting between the two countries was a success and the partnership was “more important than ever” given the current global political and economic volatility.
“I think it was one of the most effective business meetings I’ve had as prime minister,” he said.
“We are very smart and have done a lot of work in preparation to ensure that our time is used very effectively.”
Australia is New Zealand’s third largest trading partner, and New Zealand is Australia’s seventh largest trading partner. The value of two-way investment was $308 billion in 2025, according to Mr. Albanese, and two-way trade in goods and services exceeded $38 billion in 2025.
Mr Luxon had previously met with members of the Brisbane 2032 Olympic Committee as they bid for businesses in New Zealand for major construction projects.
Ahead of the Olympics, Brisbane will undergo a major overhaul including a brand new $3.8 billion 63,000-seat stadium at Victoria Park, as well as the Gabba, Queensland Tennis and Netball centres, as well as the National Aquatics Centre.
In addition to building sports facilities, the government will also renovate the Brisbane Metro and Green Bridges.
