A senior Albanese minister has suggested New Zealand Prime Minister Christopher Luxon not intervene in Australia’s domestic tax debate after he labelled capital gains tax a 'wrecking ball'. 

Workplace Relations Minister Amanda Rishworth made the comment on Sky News on Sunday following Luxon's remark on Saturday.

Prime Minister Anthony Albanese and Luxon were in Noosa, in Queensland, when the New Zealand Prime Minister addressed Australia’s proposed CGT changes.

The Albanese government’s latest budget included winding back CGT concessions, including reforms to the long-standing 50 per cent discount, as part of a broader overhaul to raise revenue and 'rebalance' the system.

New Zealand does not have a comprehensive capital gains tax.

Luxon put his position squarely within New Zealand’s prolonged internal debate.

'It's no secret within the New Zealand domestic context there's been a long-running debate now for over ten years about the merits of introducing a CGT or not,' Luxon said.

'We haven't ever introduced one in the country.'

Luxon made clear he was not criticising Australia’s tax policy.

'We don't think that's appropriate for New Zealand and we feel pretty strongly about it,' Luxon said.

'You know, we've got a recovery underway and we just think a CGT being introduced to New Zealand now would be a wrecking ball through our economy.'

Pressed by Sky News host Andrew Clennell, Rishworth rejected the comparison.

'Well, we've got two different countries with two different tax systems. Let's be really clear,' she said.

'New Zealand has a different tax system to our tax system. Capital gains tax has existed in our country as we've been discussing for a very long time.

'I don't think you can compare apples with oranges when we're talking about different tax systems and different countries.'

Asked if Luxon's remarks were a swipe at the Albanese government, Rishworth said both leaders should avoid interfering in each other's politics.

'Look, I would suggest that neither leaders would seek to get involved in domestic politics,' she said.

'And quite frankly, it was a very warm meeting and demonstrates the strong relationship we have with New Zealand, our very close neighbour. 

'But I wouldn't suggest it was a shot across the bow.'

Clennell argued the government’s CGT changes would increase the tax take.

'You're upping that tax. You're taking the discount off,' he said.

Rishworth rejected that description.

'We're not upping that tax, Andrew,' she said.

'What we are doing is changing the way that capital gains is calculated and looking at what is an appropriate tax rate for that. Of course, we are rebalancing the system.'

'Which brings in more revenue. Which is an upping of the tax, Amanda Rishworth,' Clennell said. 

But the minister stood firm, saying the additional revenue will be redirected to workers.

'It is a rebalancing of the tax system and that extra tax that we're getting is being redirected to workers,' Rishworth said.

'Workers will be better off in this country as a result of these tax changes.'

The government's changes to the capital gains discount were passed in the House of Representatives on Thursday, and will be debated in the Senate when Parliament returns later in June.