Property ownership trends and tax implications in NZ and AU

In New Zealand, the Kāinga Ora First Home Loan scheme aims to increase accessibility for first-time buyers by allowing deposits as low as five per cent. Underwritten by Kāinga Ora and provided through participating lenders, the scheme targets eligible citizens and permanent residents. Income limits apply, with individuals without dependents capped at $95,000 and those with dependents or multiple buyers capped at $150,000. The property must serve as a primary residence and be under one hectare in size. Applicants must still meet individual bank lending criteria, and a 1.2 per cent Lender’s Mortgage Insurance premium is required.

In Australia, property owners face complexities regarding capital gains tax (CGT) when assisting children with real estate purchases. Cases have emerged where parents, acting as co-owners to help children secure homes, face significant tax liabilities when attempting to transfer their shares to their children. Even if a loan is fully repaid, the transfer of ownership is treated as a disposal at market value for CGT purposes. There are also discussions regarding a potential 30 per cent tax on capital gains accruing after July 1, 2027.