About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, May 24th, 10:30AM
rss
Latest Headlines

CGT reprieve

New Zealand will not see the introduction of a capital gains tax after the Coalition Government was unable to reach a consensus on the issue.

Wednesday, April 17th 2019, 3:04PM

by Miriam Bell

After months of concerned anticipation for investors, the Coalition Government today shocked everyone by announcing they won’t be proceeding with the Tax Working Group’s controversial capital gains recommendations.

Prime Minister Jacinda Ardern says that after significant discussion the parties in the Coalition Government have been unable to reach a consensus.

As a result, they will not be introducing a capital gains tax and they have agreed no further work is necessary on that aspect of the TWG’s report into tax reforms.

Ardern says she believes there are inequities in our tax system that a capital gains tax in some form could have helped to resolve.

“But while I have believed in a capital gains tax, it’s clear many New Zealanders do not. That is why I am also ruling out a capital gains tax under my leadership in the future.”

The TWG was a valuable exercise that has delivered some useful suggestions well beyond just the debate on CGT, Ardern says.

“In fact, the majority of recommendations will either be investigated further or have formed part of our work programme.”

The announcement should come as a pleasant surprise to property investors who were preparing for the worst – a capital gains tax solely focused on rental properties.

However, while a capital gains tax is out, in the Government’s formal response to the TWG’s report, Finance Minister Grant Robertson confirms that options for targeting land speculation and land banking will be explored.

He says they intend to direct the Productivity Commission to include vacant land taxes within its inquiry into local government funding and financing.

The Government is now set to release a refreshed tax policy work programme mid-year.

Meanwhile, New Zealand First leader Winston Peters, who has long been thought to be opposed to a capital gains tax, says they listened to the public very carefully during the public discussion of the TWG’s recommendations.

The Government’s decision to not introduce a capital gains tax provides certainty to taxpayers and businesses, he says.

"There is already an effective capital gains tax through the Bright Line test brought in by the last National Government. New Zealand First’s view is that there is neither a compelling rationale nor mandate to institute a comprehensive capital gains tax regime.”

Read more:

Capital gains tax on the cards 

Scope of CGT likely to narrow 

Tags: capital gains tax CGT housing market property investment property management rental market tax tax working group

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchDitching CGT a win for common sense »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.69 4.39 4.45 4.55
ANZ Special - 3.89 3.95 4.05
ASB Bank 5.70 4.45 4.39 4.55
ASB Bank Special - 3.95 3.89 4.05
BNZ - Classic - 3.89 3.95 ▼3.89
BNZ - Mortgage One 6.40 - - -
BNZ - Rapid Repay 5.85 - - -
BNZ - Std, FlyBuys 5.80 4.69 4.59 4.79
BNZ - TotalMoney 5.80 - - -
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 5.20 5.25 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 ▼4.60 ▼4.75 -
Housing NZ Corp 5.80 4.69 4.49 4.45
HSBC Premier 5.89 3.99 3.99 4.39
HSBC Premier LVR > 80% - - - -
HSBC Special - 3.69 3.69 3.95
Lender Flt 1yr 2yr 3yr
ICBC 5.79 3.95 3.99 3.95
Kiwibank 5.80 4.80 4.94 4.84
Kiwibank - Capped - - - -
Kiwibank - Offset 5.65 - - -
Kiwibank Special - 4.05 3.99 4.09
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 4.89 4.99 -
Resimac 5.30 4.86 4.46 4.69
RESIMAC Special - - - -
SBS Bank 5.79 4.85 5.05 5.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 3.99 3.99 3.99
Sovereign 5.80 4.45 4.39 4.55
Sovereign Special - 3.95 3.89 4.05
The Co-operative Bank - Owner Occ 5.65 3.99 3.99 4.15
The Co-operative Bank - Standard 5.65 4.49 4.49 4.65
TSB Bank 5.69 4.55 4.49 4.65
TSB Special - 4.05 3.99 4.15
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.79 4.69 4.79 5.19
Westpac - Offset 5.79 - - -
Westpac Special - 3.89 3.95 3.95
Median 5.80 4.45 4.42 4.42

Last updated: 23 May 2019 12:07pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com