Budget 2026: What the proposed FIF changes mean for NZ investors
28 May 2026
The government announced several proposed changes to the Foreign Investment Fund rules in today's Budget. If they pass, they'll apply from 1 April 2026 for the 2026–27 tax year.
What changes for me under Budget 2026?
Answer four quick questions for a plain readout of which proposals touch your situation. Nothing you enter is stored.
Before you rely on any of this:
- All five are Budget 2026 proposals and are not yet in effect.
- $50,000 is the live threshold today.
- Expected in a taxation bill later in 2026 (commentary points to around September), retrospective to 1 April 2026 if it passes.
- 2026 is an election year, so passage is likely but not guaranteed, and the final detail could change at select committee.
- This tool is general information, not tax advice.
Question 1
Roughly, what did your overseas investments cost you to buy?
This is your total cost basis in NZD, what you actually paid, not the current market value.
The $50k threshold is going up to $100k
The most significant change for everyday investors is a proposal to double the FIF de minimis threshold from $50,000 to $100,000. If your overseas investments cost less than $100k, you wouldn't need to apply the FIF rules at all.
IRD's own documentation confirms the threshold hasn't moved since 2000, and that inflation has gradually pulled more investors into scope than was ever intended. This change would restore it to its original real value.
The $50,000 threshold still applies until legislation passes, though. If your cost basis sits somewhere between $50k and $100k, keep an eye on how this moves through parliament before you change anything.
Revenue Account Method now open to everyone
The Revenue Account Method (RAM) was introduced earlier this year for recent migrants. Under RAM, you only pay tax on gains when you actually sell, plus any dividends received, rather than owing tax on a deemed return each year.
The proposal extends RAM to all NZ residents for unlisted foreign shares, regardless of when they arrived. US citizens and others facing double taxation would also get access to an extended version covering listed shares too.
Changes for founders and early investors
Investors using the Attributable FIF Income method currently lose access if their stake dilutes below 10% as a business grows. The proposal lets founders and active investors keep using it after dilution, provided they stay actively involved.
SPAC listings and the 10-year exemption
NZ investors in companies listing overseas via a SPAC were losing their 10-year FIF exemption due to a technicality around share continuity. The proposal fixes that.
What this means in practice
For most retail investors, the threshold change is the one to watch. If it passes, a lot of investors currently doing FIF calculations each year simply won't need to anymore.
For investors with unlisted shares in startups or private companies, the RAM expansion is the more meaningful change.
None of this is in effect yet. We'll update this page as the legislation progresses.
FIF Sorted is an estimation and education tool only. It does not constitute tax advice and should not be relied upon as a substitute for professional advice tailored to your situation. Tax rules can change, so always verify with Inland Revenue (IRD) or a qualified tax professional before filing.