New Zealand’s ACT Party has unveiled a campaign proposal to modernize the country’s digital asset rules, including a tax exemption for gains on qualified crypto assets held for more than 12 months and a de minimis exemption for low-value purchases made with cryptocurrencies.
ACT’s Digital Asset Policy
The party, which holds the fourth-largest number of seats in the New Zealand Parliament, is advocating two headline changes aimed at reducing friction for crypto users and investors:
- Long-term gains relief: Waive tax on gains from qualified crypto assets held for over one year.
- De minimis spending exemption: Exempt small, low-value purchases made with crypto from triggering a taxable event.
ACT frames the measures as part of a broader effort to update New Zealand’s financial regulations for the digital era and to create clearer, more practical rules for everyday crypto use.
Current Tax Treatment in New Zealand
Under existing guidance, New Zealand treats most crypto assets as property for tax purposes. Disposals of crypto—such as selling for fiat currency or spending on goods and services—can be taxable, especially where the assets were acquired with the intention of resale. There is currently no general exemption for small-value transactions, and everyday spending can create record-keeping and compliance burdens for users.
Potential Impact on Users and Merchants
If implemented, a long-term gains exemption could provide greater certainty for investors who hold digital assets over extended periods. A de minimis threshold for retail spending could reduce the need to track and calculate tax on small transactions, potentially making it easier for merchants to accept crypto and for consumers to use it in day-to-day purchases.
The proposals would require legislation and parliamentary support. Fiscal, compliance, and consumer-protection considerations are likely to feature in the policy debate as lawmakers weigh the potential benefits against revenue and enforcement implications.
What Comes Next
ACT is promoting the reforms as part of its wider campaign platform. Any changes would need to progress through the legislative process before taking effect, with details such as eligibility criteria, asset scope, and transaction thresholds to be defined in a bill and accompanying regulations.