Capital gains tax: Christopher Luxon takes crack at ANZ boss Antonia Watson over CGT support

Prime Minister Christopher Luxon has had a dig at an Australian bank boss. Photo / Mark Mitchell

By Craig McCulloch of RNZ

The coalition Government has put the boot into ANZ’s boss after she threw her weight behind a capital gains tax.

Speaking on RNZ’s interview show 30 with Guyon Espiner, ANZ chief executive Antonia Watson said she believed taxing investment properties at the point of sale was fair.

“People are investing in housing for the purpose of getting a capital gain on it. And if that’s the purpose of it, why not have that as part of the tax take?” Watson said.

Asked for his response on Wednesday afternoon, Prime Minister Christopher Luxon laughed.

“I love it that the CEO of a big bank from Australia wants to take more money off New Zealanders,” Luxon said.

“You don’t tax your way out of a recession. You grow your way out of a recession.”

Luxon said Watson was “more than welcome to enter the political domain” but offered some free advice in return.

“As a former CEO, I understand what she’s doing... the big Australian banks make a lot of money off the New Zealand public, and I would just suggest to her that maybe taking more money off New Zealanders isn’t the road forward.”

Finance Minister Nicola Willis also made a pointed suggestion to Watson: “If she’s really worried about the wellbeing of New Zealanders, then there’s a lot the bank could be doing.”

Act leader David Seymour said the unfairness was not in New Zealand’s tax system, but in its difficulty building houses.

“A lot of countries have capital gains taxes. A lot of people like it. Doesn’t make it right,” Seymour said. “If you want a fairer society, make it easier to build a house.

“House prices go up because there are not enough houses for the demand that there is. Having a capital gains tax just makes the Government a silent partner in that speculation.”

While Labour has yet to settle its final tax policy, housing spokesman Kieran McAnulty said Watson’s comments added some weight to the argument for a capital gains tax, as did the support of outgoing Treasury head Caralee McLiesh.

“I certainly didn’t expect [Watson] to express a view either way, but I think what is obvious is that more and more people are expressing that view,” McAnulty said.

“Last time we had a debate, it was pretty divisive... perhaps it won’t be this time, who knows?”

McAnulty said he was also surprised by Luxon’s dig at Watson, suggesting it was unbecoming of a leader.

“The CEO of a company surely is capable of making their own mind up and expressing it without the Prime Minister having a crack,” he said.

“He’s starting to show a bit of pressure, that bloke, I reckon.”

Labour deputy Carmel Sepuloni said Labour would put its proposal before the public before the next election – “potentially next year”.

- RNZ

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