There's potentially still some interest in doing that: tax...

There's potentially still some interest in doing that: tax deferred is tax in part saved. But once you deduct the lost franking credits it has to look pretty weak. Are you able to be more specific on the AU tax laws on this point? What if you buy a house in NZ and later sell it? You pay Australian CGT?

Certainly, given the glaring disparity between two economies which are otherwise so closely entwined, it's baffling that anyone invests ex-AU if they could do otherwise. Your answer suggests that perhaps, in fact, they can't. But I'd love to see the specifics which prevent this.

It's equally odd that Australians are not up in arms about the fact that their own assets are worth more in the hands of a foreigner (well, a kiwi, at least).