New Zealand’s prime minister has ruled out a capital gains tax in his country, saying it would be a “wrecking ball” for the Kiwi economy as he stood alongside Anthony Albanese.

Mr Albanese and his NZ counterpart Christopher Luxon spoke in Noosa on Saturday after signing a new agreement between the two countries.

While the Prime Minister has faced a backlash over his broken promise on changing the CGT in Australia, Mr Luxon said his government wouldn’t introduce it at all and defended his finance minister for jumping on the issue.

“Within the New Zealand domestic context, there’s been a long-running debate now for over 10 years about the merits of introducing a CGT or not,” Mr Luxon said.

“We’ve got a recovery underway and we just think of CGT being introduced to New Zealand now would be a wrecking ball for our economy.”

The NZ Prime Minister stopped short of commenting about Australia’s own changes to CGT taxes, saying there were differences between the economies of the two countries.

And he defended his finance minister Nicola Willis who appeared to have a dig at Australia straight after the Albanese government announced it would remove the 50 per cent discount on the CGT concession in the May 12 budget.

“Australians looking to start or grow a business have an epic opportunity, and that opportunity is to do it in New Zealand,” Ms Willis said at the time.

“No capital gains tax, very simple tax system, broad base, low rate we keep it simple, we allow you accelerated depreciation and deductibility on your capital investments.

“And you’ve got a government that is very pro-growth, anti-red tape.”

Mr Luxon said her comments weren’t an attack on the Albanese government.

“Her comments were really in the context of that debate domestically rather than commenting on the CGT here in Australia,” he said.

Mr Albanese also laughed off the issue when questioned at the press conference.

“We have a relationship which is often a bit tongue in cheek,” Mr Albanese joked.

“The Wahs (New Zealand Warriors), sign our players, but we have a few Kiwis in Australia too – 638,000 of them – or one in eight New Zealanders live here.

“It is a good relationship, occasionally there is a bit of cheekiness to the relationship and long may that continue.”

“The Prime Minister covered it, it was done in good humour and yes it was cheeky, but what is important is we don’t comment on each other’s domestic economic policies because there are different contexts and history and she didn’t do that.”

Under the new agreement signed between the prime ministers, there are eight actions to improve economic productivity in both countries.

Mr Luxon said the deal would ensure the defence partnership “remains fit for purpose”, while also maintaining co-operation with their Pacific neighbours and developing more security and resilience with technology to improve productivity.

He added the agreement would strengthen the next phase of the trans-Tasman science collaboration and provide “clear opportunities” to engage with the construction of the Brisbane 2032 Olympics, helping to lift both countries’ tourism and infrastructure profiles.

Mr Albanese said the meeting between the two nations was successful and the partnership is “more than important than ever” given the current global political and economic volatilities.

“I think it was one of the most effective business meetings that I’ve had as Prime Minister,” he said.

“We’re very sharp, and a lot of work went into the preparation, clearly, to make sure it was a very effective use of our time.”

Australia is New Zealand’s third-largest trading partner and New Zealand is Australia’s seventh-largest trading partner. Two-way investment was valued at $308bn in 2025, according to Mr Albanese, and in 2025 two-way trade in goods and services exceeded $38bn.

Mr Luxon earlier met with members of the Brisbane 2032 Olympic Committee as he bids NZ businesses for the major construction projects.

Ahead of the Olympics, Brisbane will go through a major overhaul, including a brand new $3.8bn 63,000 seat stadium in Victoria Park, upgrade to The Gabba, Queensland Tennis and Netball centres, as well as the National Aquatic Centre.

Away from building sporting facilities, the state will also upgrade the Brisbane Metro, and Green Bridges.