# NZ Super Fund helped Australia drop retrospective capital gains tax proposal

> NZ Super Fund and Canada's pension fund urged Australia to drop retrospective capital gains tax changes, leading to revised proposals.
- Title: NZ Super Fund helped Australia drop retrospective capital…
- Summary: NZ Super Fund and Canada's pension fund urged Australia to drop retrospective capital gains tax changes, leading to revised proposals. Australia abandoned…
- Keywords: nz super fund, australia, capital gains tax, retrospective tax, pension fund, investment jurisdiction, tax policy, finance minister, revenue minister, politics, news, Super
- Source: NZ Herald — https://nzherald.co.nz/nz/politics/nz-super-fund-may-have-helped-australia-drop-retrospective-capital-gains-tax-proposal/VEWSHRBDVVERPHCFELHSOXWNCA
- Read time: 1 min
- Topics: nz super fund, australia, capital gains tax, retrospective tax, pension fund, investment jurisdiction, tax policy, finance minister, revenue minister, politics, news
## NZ Super Fund's role
The NZ Super Fund and Canada's Public Sector Pension Investment Board raised concerns directly with the Australian Government.

> As currently drafted, the Government would be taxing long-term foreign investors on gains that accrued when such assets were not subject to CGT in Australia
## Tax proposal details
Australia proposed broadening capital gains tax to include wind turbines and transmission lines, backdating changes to 2006.
## Inland Revenue's stance
Inland Revenue initially declined to share impact analysis with Australian officials, citing potential damage to New Zealand-Australia relations.

> making available ... that information would be likely to prejudice the security or defence of New Zealand or the international relations of the Government of New Zealand
## Ombudsman intervention
The Ombudsman forced Inland Revenue to release briefing after Finance Minister Nicola Willis criticized Australia's tax changes.
## Investment concerns
Inland Revenue warned reduced Australian investment could impact New Zealand as investors often follow with New Zealand investments.

> direct investment in New Zealand often follows as a second step from direct investment into Australia
## Revised proposal
Australia ended up applying tax changes forward only, abandoning retrospective backdating to 2006.
## NZ Super Fund assets
The NZ Super Fund manages NZ$89.9 billion as of 31 October 2025, investing globally including in Australia.

> NZ$89.9 billion of assets under management as at 31 October 2025 and invests in diversified assets throughout the world, including Australia
## Political reaction
National Party finance spokeswoman Nicola Willis called the tax changes 'extra tax backfiring' and damaging for investment.

> another example of extra tax backfiring and damaging prospects for investment and growth
## Investment impact
Inland Revenue warned tax changes could lead to decreased confidence in Australia as a location for long-term investment.

> commentators warn that the changes, particularly if made without transitional relief, may lead to decreased confidence in Australia as a location for long-term investment
## Current status
Changes to Australia's capital gains tax took effect on October 1, 2026.
## Key takeaway

Australia abandoned backdating capital gains tax changes after NZ Super Fund and Canada's pension fund warned it would weaken investment confidence.