New Zealand Property Investors' Federation, (NZPIF) is the umbrella body for 20 local Property Investors' Associations throughout New Zealand.
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“The NZ Property Investors Federation is comfortable with the Prime Minister’s announcement of a capital gains tax on property sold within two years,” says Andrew King, Executive Officer of the NZ Property Investors’ Federation.
This article is the opinion of KPMG Tax Partner Tony Joyce.
The Reserve Bank does not favour the kind of capital gains tax the Labour Party is proposing, saying it would only distort the property market further.
BNZ economist Tony Alexander has rejected the argument that a capital gains tax would result in additional money being invested in productive assets.
Labour proposals for a capital gains tax on investment property have been criticised as unfair on both investors and tenants, "who are going to end up paying for this."
Tax changes are "essential" to remove the distortions that favour housing as an investment over basic savings products, according to the Savings Working Group report.
Toughening existing tax rules about when the capital gain on a property can be taxed were still under consideration by ministers until relatively late before this year’s Budget, papers released by the Treasury show.
The Government has ruled out almost all the property tax changes proposed by the Tax Working Group.
RESIDENTIAL TENANCIES AMENDMENT BILL - 2nd reading commenced. The Government commenced the second reading debate of the Residential Tenancies Amendment Bill on 8 December. This process basically means that Parliament is asked to adopt the bill as reported back, with amendments from the Social Services Select committee.
Broadening the tax base is critical in the longer term, to avoid large increases in personal income tax and GST.
Calls for a capital gains tax are gaining momentum, but unfortunately the capital gains debate thus far has been tainted with misinformation and a lack of clarity as to what a capital gains tax would hope to achieve. Frank Newman, who is a writer on investment and a part-time lecturer at Massey University, gives his views.
Equity, rather than the question of curing an over-investment in property, is the focus of a new paper on a capital gains tax for New Zealand.
While the Prime Minister John Key virtually ruled out a capital gains tax yesterday, he is much less unequivocal about other forms of tax on property investment.
The NZPIF has been campaigning on behalf of it's members in opposition to proposals to introduce a Capital Gains Tax for Property Investors.
The government is not ruling out a capital gains tax to keep the housing market under control.
A capital gains tax on property investment is definitely not on the Government's agenda, says Housing Minister Phil Heatley.