Classic Robin Hood tax from the “no more taxes” lying thieves.
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During the National led party I saw their focus of welcoming migrants to NZ. Their immigration policy made it clear that those abroad (and many who are wealthy) to "Give NZ a Try". They passed tax laws that exempted income for 4 years upon residency / arrival in NZ. It was clear, NZ at that time welcomed investment and people into NZ. Now, it seems the Labour wants to do a 180 turn. Labour gov't needs to remember the very same people that brought $ to NZ as migrants, can easily leave back to their home country. I mean after all, when you balance things up, if the benefits are no longer available in NZ, then why stay? As for myself, the very things I hated about Canada, (long ago), i'm starting to see them happen in NZ now (regarding around taxation).
What i'm most concerned about is the details of the CGT. It's very simple. If the tax bite is too high.. excessive compared to other countries with no concessions or exemptions (that is common in other OCED nations), then I would be a fool to keep my family in NZ. I mean at the moment, it seems that the CGT proposed for NZ doesn't compare well to where I grew up in Canada (and Canada is a country well known for excessive taxation). My wife would in a heartbeat would give up her high paying job in NZ just to move to Canada. I do not believe my situation would be unique in NZ.
If this thing goes ahead it will be only a shadow of the current recommendations put forward by the tax working group, I think the current Govt has underestimated the resistance to a CGT.
Au contraire - A big part of the reason for investigating a CGT was because home ownership rates have been falling due to rising prices. One of the big reasons for that is that investors have been prepared to receive low taxable net rent returns in the expectation that they will receive untaxed capiital gains.
We are the only country in the OECD that does not have a formal CGT although we have the Brightline tax which of course is CGT in disguise. Most of other OECD have a CGT with many exemptions and lower rates than normal income tax. But it has not stopped them from having exactly the same issues as NZ with run away house prices and high rents. The idea that CGT will be a guarantee to lower house prices and lower rent is simply not supported by any evidence
I've probably missed something here but do the TWG recommendations include allowing tax deductions in respect of capital losses? Tax loss selling of doggy shares in the weeks leading up to the end of the financial year is a feature of the Aussie market.