The budget is permanently raising Inland Revenue's funding by nearly $7 million per year so it can ensure property investors pay the tax they owe.
The Government estimates this measure will return about $45 million per year.
Revenue Minister Peter Dunne says since 2010, about $110 million has been raised from additional property audits.
However, New Zealand Property Investors Federation vice-president Terry Le Grove said the crack-down probably won't mean much to true property investors but will rather target property speculators.
He said the majority of the federation's members buy property and then hold it, as the organisation is about investing.
Mr Le Grove said IRD speaks at seminars held by various associations around the country outlining what investors tax responsibilities are.
The Government is also planning a further crack-down on foreign investors who artificially load up their New Zealand investments with debt in order to reduce their tax obligations.
The rules will be extended to situations where more than one foreign investor controls a company and they are deemed to be acting together.
However, the definition of what acting together means has not been decided yet.
