Unlocking New Zealand's Digital Economy

ACT will unlock New Zealand’s potential by modernising the rules around digital finance to make it easier to raise capital, invest, build new financial technology, and connect New Zealand businesses with the world, says Deputy ACT Leader Nicole McKee and ACT MP Cameron Luxton.

“New technology is changing how businesses raise capital, how people invest, and how money moves around the world. Tokenised assets can open up new sources of investment. Stablecoins can make international payments faster and cheaper. New financial technology can create high-value businesses and jobs,” says Mrs McKee.

“ACT will cut red tape, set clear rules, and open up investment so Kiwis can raise capital, pay and get paid more easily, and take part in the technologies shaping the future - while keeping strong consumer and financial safeguards.”.

“ACT will unlock New Zealand’s potential with six reforms:

• Establish a clear legal and tax framework for tokenised securities and real-world assets. This makes it easier to divide, issue and transfer ownership in productive assets. New Zealand needs clear rules so businesses and investors can use these tools with confidence. 

• Create clear, high standard rules for qualifying payment stablecoins to unlock faster, lower cost cross border payments and innovation, with strong protections for consumers and financial systems. 

• Establish a supervised financial innovation sandbox where innovative businesses can trial new financial products before full licensing. Start-ups should not be burdened by the same regulatory rules as large financial institutions. This change unlocks further innovation for start-ups and keeps innovation and investment here at home in New Zealand. 

• Introduce a simple 12-month bright line for qualifying long term personal investment in digital assets. If you hold a qualifying asset for at least a year, your gains won’t be taxed under this rule. This gives everyday investors certainty and simplicity while keeping professional trading and business activity fully taxable so the system remains fair. 

• Introduce a sensible tax exemption for low-value purchases made using digital assets, removing unnecessary tax compliance for everyday users. Inland Revenue should focus on significant taxable activity, not trivial transactions that create more paperwork than revenue. 

• Review current rules that we know are creating barriers to banking and payment infrastructure for legitimate, properly regulated fintech and digital finance businesses offering their services in New Zealand. This will unlock New Zealand’s access to financial infrastructure, protecting fair access to banking and payments. 

“ACT will be unlocking more growth, better jobs, and a future-ready economy that New Zealanders can participate in,” says Mr Luxton. 

“We will align digital finance policy with a bigger goal, getting capital flowing to good ideas and helping entrepreneurs build globally competitive businesses from New Zealand. 

“With clear rules, sensible safeguards, and less red tape, ACT will unlock New Zealand’s Digital economy and help Kiwis invest, build, and transact with confidence in a modern, competitive economy,” says Mrs McKee.

Note to Editors: ACT's full policy, Unlocking New Zealand's Digital Economy can be accessed here.