New Zealand’s ACT Party has outlined an election proposal to change how digital assets are taxed and regulated, centering on a capital gains tax exemption for some crypto holdings and relief for small everyday purchases made with crypto. The party says the broader package is meant to modernize the country’s digital finance framework.
Under the proposal, individual retail investors would not pay capital gains tax on qualified crypto assets held for more than a year. The plan would not extend to professional traders, businesses, or shorter-term holdings, which would remain under existing tax treatment.
Tax break aimed at long-term holders
ACT, which has the fourth-largest representation in the New Zealand Parliament and holds 11 seats, presented the policy as part of a wider push to update digital asset rules. Its proposal would waive capital gains tax on qualified crypto assets held for over 12 months, framing crypto as a long-term investment option for retail participants.
The party’s outline draws a clear line around who would qualify. It applies only to individual retail investors. Professional traders and businesses would still face the current tax rules, and transactions involving assets held for less than a year would continue to be taxed.
Small crypto purchases would also be exempt
A second tax measure in the plan would remove taxes on low-value personal purchases paid for with crypto assets. ACT says that change is intended to make digital assets more practical for everyday spending rather than limiting their use to investment activity.
The source article does not specify a transaction threshold for what would count as a low-value purchase, but it presents the exemption as a carve-out for small personal use rather than commercial activity.
Broader digital finance reforms in the package
Beyond tax changes, the party says it wants clearer legal and tax treatment across several parts of the digital asset sector. Its proposal includes a defined regulatory and tax framework for qualifying payment stablecoins, as well as clear legal and tax rules for tokenized securities and other real-world assets.
ACT also proposed a startup sandbox that would let companies test innovative products under a dedicated framework. In addition, the party wants a review of existing policy settings to assess whether crypto businesses are being excluded from financial infrastructure.
Party message and what comes next
Deputy ACT Leader Nicole McKee said clearer rules, safeguards, and less red tape would help unlock New Zealand’s digital economy and allow people to invest, build, and transact with more confidence. The party has also said it wants New Zealand to become a trusted base for digital finance, modern capital markets, and financial innovation.
For now, these measures remain campaign pledges rather than enacted policy. The next confirmed step is political rather than regulatory: ACT is taking the package into the election debate as it argues for changes to tax and legal treatment for crypto, stablecoins, tokenized assets, and digital finance businesses more broadly.
Source: news.bitcoin.com