Bjauck - as the chart FISaver linked, it's natural the primary residence will be the biggest asset for at least say 80% ? of the population. The vast majority of people would not be affected by CGT. But since they hold the voting power, it seems what will happen is a Robin Hood effect. Labout Gov't going after those who work harder, earn more $, invested more, and so now it's time for the CGT to take it away (err.. take those CGT on houses away).

I'm not putting my bet that with CGT more people will invest into their primary residence. The vast wealthy top 10% already have a ritzy house. What would be more compelling is the exodus flow of capital leaving NZ. A weakening of the NZD. A lower standard of living. and most likely, little or no change of tax revenue over the long term (as the wealthy have ways to move their assets abroad). We may see housing prices correcting lower as the wealthy exit the real estate market (a good thing for those that can't afford houses).