House Prices

Govt plan to tax investors 4pc on their losses

A proposal that would effectively tax investors on their losses has surfaced in a document released just before Christmas by the Inland Revenue and Treasury.

Wednesday, February 04th 2004

The proposal only concerns investments by Kiwis in offshore-based investment vehicles, although the scale of such investments is huge. New Zealanders' offshore investments total $86 billion, of which $35b is in shares.

But tax experts say the proposal could also be applied to domestic investment vehicles.

The issues paper suggests that regardless of what offshore vehicles actually earn, investments should be taxed at a "standard return rate".

It suggests a standard return of 4 per cent of the market value of the shares would not be out of line with the average dividend yield in countries where most New Zealanders invest overseas.

The proposal means investors would be on a winner if and when their investments earned more than 4 per cent.

Read More - Opens in a new window

Most Read

AIA - Go Home Loans 4.00
Unity First Home Buyer special 4.15
SBS FirstHome Combo 4.29
ICBC 4.49
Kainga Ora 4.59
SBS Bank Special 4.69
Unity Special 4.80
China Construction Bank 4.85
Co-operative Bank - First Home Special 4.89
Co-operative Bank - Owner Occ 4.99
ASB Bank 4.99
China Construction Bank 4.95
Kainga Ora 4.95
ICBC 4.99
SBS Bank Special 5.29
Unity Special 5.29
Westpac Special 5.29
Co-operative Bank - First Home Special 5.29
ANZ Special 5.35
ASB Bank 5.35
BNZ - Std 5.35
AIA - Go Home Loans 5.35
SBS Bank Special 5.49
ICBC 5.65
Kainga Ora 5.69
ASB Bank 5.75
BNZ - Std 5.75
AIA - Go Home Loans 5.75
Westpac Special 5.75
Kiwibank Special 5.89
Co-operative Bank - First Home Special 5.89
TSB Special 5.99
China Construction Bank 5.99
SBS FirstHome Combo 3.29
AIA - Back My Build 3.34
SBS Construction lending for FHB 3.79
CFML 321 Loans 4.20
ICBC 5.39
Co-operative Bank - Owner Occ 5.69
Co-operative Bank - Standard 5.69
Kainga Ora 5.79
Pepper Money Prime 5.99
Unity Standard 6.04
Unity Special 6.04

More Stories

Can the NZ economy grow while house prices stagnate?

Thursday, July 09th 2026

Can the NZ economy grow while house prices stagnate?

The question of whether the New Zealand economy can grow much without a recovery in the housing market remains a live issue.

Thursday, February 19th 2026

RBNZ expects slower house price growth in the current recovery

The Reserve Bank thinks house prices will rise at a much slower pace during the current recovery than they have in past cycles.

Wednesday, January 07th 2026

Queenstown not off the radar for first home buyers

First home buyers are not being deterred by Queenstown’s soaring house prices.

Record levels of first home buyers taking out low deposit loans

Tuesday, December 23rd 2025

Record levels of first home buyers taking out low deposit loans

About half of all first home buyer lending has been done at a less than 20% deposit in recent months.