The Government’s response to Auckland’s housing [insert word of choice here] has focussed on the supply side of the issue. Ironically, many property owners may find themselves with a tax headache thanks to one of these key supply initiatives, the Proposed Auckland Unitary Plan, triggering a tax measure introduced to deal with another housing boom forty odd years ago.
“We do not believe that the introduction of a bright-line test for residential land is sound tax policy.”
That was the Chartered Accountants Australia and New Zealand’s (“CAANZ”) opening sentence in their submission to Parliament’s Finance and Expenditure Committee regarding the Taxation (Bright-line Test for Residential Land) Bill (“the Bright-line Bill”).
My presentation for ATAINZ on proposed changes to the new Bright Line Test for residential property sales.
The surprise in the Budget of the first increase in real terms to benefits since 1972 came at a cost for savers and travellers and possibly also for the recipients of the benefits package.
The Budget contains no direct tax measures other than the previously announced increase in funding for Inland Revenue’s property compliance programme and the new “bright line” test for property investors.
Reserve Bank Deputy Governor Grant Spencer certainly put the capital gains tax cat among the pigeons when he suggested “the Reserve Bank would like to see fresh consideration of possible policy measures to address the tax-preferred status of housing, especially investor related housing”.
The Finance Minister says the Government is looking at how tax enforcement can be beefed up to snare investors trading in houses.
The IRD has long been chasing property investor tax avoidance around "purpose or intent to sell".
Today's announcement of additional funding for IRN enforcement.
Listen to the full interview on Checkpoint [6' 20" length]
The Election is over and those parties actively proposing a capital gains tax (CGT) have lost, badly. So does that mean the debate about CGT is over?
At times it’s hard to escape the suspicion that the vociferous opposition to CGT from the likes of the New Zealand Property Investors Federation appears to be more motivated by the self-interest of protecting untaxed capital gains than any concerns about introducing a complex new tax.
“Welcome to the Hotel California Such a lovely place (Such a lovely place)
Such a lovely face
Plenty of room at the Hotel California
Any time of year (Any time of year)
You can find it here”
Since the start of the year we’ve been hearing lot about whether or not New Zealand is a “Rock Star economy”.
I’m not so sure about that but I do see echoes of one of The Eagles most iconic hits: Hotel California.