The prime minister and his Kiwi counterpart have traded light-hearted barbs in Noosa, masking a deep divide over capital gains tax as both leaders face looming domestic battles.

The Prime Minister is set to meet with his Australian counterpart on Saturday.

New Zealand’s prime minister has ruled out a capital gains tax in his country, saying it would be a “wrecking ball” for the Kiwi economy as he stood alongside Anthony Albanese.