Cullen to lead Tax Working Group
Thursday 23 November 2017
Finance Minister Grant Robertson
Property speculators are in the sights of the new Tax Working Group which the government has just released the Terms of Reference for.
By The Landlord
Finance Minister Grant Robertson says that the Working Group, which will be chaired by Sir Michael Cullen, will consider changes to improve the structure, fairness and balance of the tax system.
“At the moment the tax system appears unfair – for example, it doesn’t treat income from speculation in housing as it does income from work, he says.
“We want to consider how we can create a better balanced system and can encourage a shift to investment in the productive economy.”
Robertson doesn’t believe that individual wage-earners, businesses, asset owners and speculators are paying their fair share of tax – and says they should be.
“The Working Group is not about increasing income tax or the rate of GST, but rather introducing more fairness across all taxpayers.
“It is important that New Zealanders have confidence in their tax system and know that everyone is paying their fair share.”
Robertson confirms that, as promised during the election campaign, certain areas will be outside the scope of the review, including changes that would apply to the family home or land beneath it.
The spectre of a capital gains tax was raised during the election, but Robertson did not mention this today.
However, he says that any significant changes legislated for from the Group’s final report will not come into force until the 2021 tax year, after the next election.
The other members of the Working Group will be announced before Christmas and the Working Group’s final recommendations to ministers are due by February 2019.
Robertson says it is important to ensure that all sectors of the economy can feed into the Working Group’s processes and that all relevant perspectives are considered.
Comments from our readers
Sign In / Register to add your comment
Prices remain high in the Auckland region but new data from two real estate websites indicates the market has shifted to favour buyers.
Technology and changes to the way people work are set to transform the commercial property sector and investors need to be attuned to these developments.
The demise of the capital gains tax proposal and record low mortgage rates will led to a pick-up in housing demand and boost the market, ASB economists say.