Policy king hit
Monday 8 April 2019
Investors have recently been dealt a double whammy with the concurrent release of the Tax Working Group’s recommendations on capital gains and the Healthy Homes minimum standards.
By The Landlord
In this world nothing can be said to be certain, except death and taxes, according to Benjamin Franklin.
And, in New Zealand of late, it seems that nothing can be certain except talk of tax – specifically the spectre of a capital gains tax.
Since the public release of the Tax Working Group’s (TWG) final report, it feels there has been talk of little else.
For property investors, the TWG’s report confirms their fears that a Capital Gains Tax (CGT) on rental properties is now firmly on the cards.
Yet the waiting game continues as the Government considers exactly what it plans to adopt.
In this month’s issue of NZ Property Investor magazine, we take a look at what the report says, what people have to say about it and what it could mean for investors.
No-one was surprised that the TWG’s final report recommended that income from capital gains should be taxed more. But the extent of the recommendations around a CGT did shock.
Most of the 11 member group support the introduction of a CGT on rental properties, land and buildings, business assets, intangible property and shares.
Just three of the group think the tax should be confined to the sale of residential rental properties.
This is a far more comprehensive sweep of capital gains producing assets than was expected.
And, as such, it has led to a high level of fevered debate. The fact that small businesses and farms, in particular, are under threat has prompted widespread outrage.
To read more about our take on the TWG’s proposals, along with our rundown on the new Healthy Homes minimum standards, click here to get the digital issue of NZ Property Investor magazine.
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Auckland’s price growth might be flatlining overall but new data shows the SuperCity still has some hot spots where prices are on the rise.
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.