Stopping just short of calling for the introduction of a capital gains tax, BNZ CEO Andrew Thorburn says Kiwis need to face up to the "fundamental anomalies" at the heart of their tax system in order to both encourage investment away from residential property and into job creating, productive businesses, and lift savings levels. Boosting savings would help tackle our "perennial" current account deficit and making KiwiSaver compulsory would be a step in the right direction.

In a speech to the Trans-Tasman Business Circle at a lunch in Auckland, Thorburn also noted New Zealanders "cling to a belief" the value of their homes can only ever go up, when homeowners in other countries have seen this belief "shattered."