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It's actually compulsory in New Zealand to have puppies micro chipped. I'm not sure what the laws are regarding cats however. When I had a cat growing up she would wear a collar as she enjoyed being both indoors and outdoors. If I ever adopt another cat I will definitely microchip it as well as make it wear a collar.
In New Zealand a lot of people will assume a cat is homeless if it doesn't have a collar and may try to keep it. It's also much simpler if a cat gets lost and it has an address tag as some people wouldn't think of taking it to the vet to get it scanned for a microchip. There are inventive collars and tags now that are less obtrusive and less likely to get caught.
Better safe than sorry I say ...
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