Labour / NZ First Government

[Bjauck]

You may like to mention this to IRD as they seem to think that property investment does not have a tax advantage over other investments. Well so they have said numerous times.

In fact residential rental property is actually disadvantaged compared to other investments, including commercial property, since building depreciation was removed as an expense.

And no good saying, well, leveraged. Plenty of leveraged investments around that are not property based.

Owner occupied residential property is the biggest investment many NZ households, who can afford to buy it, have. It is a separate class. The benefits of ownership - imputed rent - is not taxable.
https://www.businessinsider.com.au/i...16-9?r=US&IR=T

Perhaps they refer to the general tax rules, which are the same. In NZ, can you borrow the same percent of business valuation as you could from real estate valuation? In practice how many people could borrow the same amount of credit on a portfolio of shares as they could against real estate valued at the same amount? Hence the ability to leverage untaxed capital gains from NZ residential property, whilst being able to deduct the interest from taxable income (in the case of investor rental property).

[artemis]

Perhaps they refer to the general tax rules, which are the same. In NZ, can you borrow the same percent of business valuation as you could from real estate valuation? In practice how many people could borrow the same amount of credit on a portfolio of shares as they could against real estate valued at the same amount? Hence the ability to leverage untaxed capital gains from NZ residential property, whilst being able to deduct the interest from taxable income (in the case of investor rental property).

Shares are not the only investment that can be leveraged. Plenty of secured and unsecured loans made every day.

And the general tax rules are not the same, they disadvantage - building depreciation as mentioned, bright line rules, residential property restrictions on overseas buyers.

[Bjauck]

Shares are not the only investment that can be leveraged. Plenty of secured and unsecured loans made every day.


And the general tax rules are not the same, they disadvantage - building depreciation as mentioned, bright line rules, residential property restrictions on overseas buyers.

General rules. As this is sharetrader, I was using shares as an example vis a vis real estate.


For that matter dividends are not the same as rents. Demergers and take-overs need court rulings to stop a shareholder being taxed on the capital value of their investment, which otherwise could be deemed to be a dividend! Also a NZ resident can be taxed on unrealised capital appreciation of their overseas shareholdings under the FIF rules. Specific rules vary for each investment type.


Average NZ dividend yield is higher than the average rent yield especially in Auckland....


So, NZ capital is pumped into expensive residential land with the result that NZ dividend yields are high and for want of NZ investors, good NZ companies often need to relocate overseas or risk being swallowed up by overseas purchasers.


The NZ share market is tiny for the size of the economy.

[winner69]

Prime Minister Jacinda Ardern has announced plans to freeze the salaries of MPs while a review of the pay-setting system is carried out. (Nz Herald)

Hope the pay setting system recommends a big pay cut

Jacinda must be worried about the polls .....taking such drastic action.

This will give the populous the warm fuzzies ....won’t it?

[Joshuatree]

Great stuff ,3% rise due. 2.5% last year. WTF should they get this year after year making the gap wider. School teachers for ex used to get the same pay in the 60's 70's and have been totally left behind hence a first strike in 24 years. Being cynical/sarcastic fits you like a glove w69. Guess we need some in the politics game

[Joshuatree]

Auckland hospitals get $305m for repairs and upgrades The City Hospital, Starship, and Greenlane will benefit.

More good stuff from our govt, the cycleway are really transformational but i think of all those many thousands of good people who need pay increases.



Govt pledges $67m to build SkyPath cycleway It's part of a $390m investment into cycling and walking, the largest ever in NZ.

[BlackPeter]

Government wastes taxpayer money to subsidize a rich mans sport and payback Winston's supporters:

https://www.radionz.co.nz/news/polit...weather-tracks

National's economic development spokesman Paul Goldsmith said his party supports the racing industry but the lines are blurred when a project gets the green light simply because a coalition partner likes the sound of it.

"They should be able to make their case clear, and open and rigourous, and if it stacks up, it stacks up.

"The problem that we've got here is that the whole system is opaque and murky so it's hard to disentangle the arguments, and in that area they're not even making an argument, they're just saying we're going to do it,'' Mr Goldsmith said.

So - I guess no matter whether one likes a particular "sport" or not - quite outrageous to see a government which lost contact with its base a long time ago to put taxpayer money without proper scrutiny and process towards their special friends.

Murky times - must be time to drain the swamp!

[Joshuatree]

Im not into horse racing or gambling but it looks like a good business case there.

New Zealand Thoroughbred Racing chief executive Bernard Saundry said the industry has lost nearly $3 million in the last year due to abandoned races.
He said the economic flow-on to everyone in the industry is huge and synthetic tracks would go a long way to providing certainty for trainers and owners.

"I don't see racing as a rich man's sport. It's a sport that employs directly and indirectly more than 50,000 people, it has an economic impact of $1.6 billion a year and it has a major reach right across the North and South Island - and the export opportunity not only for horses but for people to go and explore the world.''

[minimoke]

Auckland hospitals get $305m for repairs and upgrades The City Hospital, Starship, and Greenlane will benefit.

I reckon health is a core govt service so don't have much difficulty with this spend

More good stuff from our govt, the cycleway are really transformational but i think of all those many thousands of good people who need pay increases.



Govt pledges $67m to build SkyPath cycleway It's part of a $390m investment into cycling and walking, the largest ever in NZ.

This is plain nuts. The only people to benefit is a minority of Auckland cyclists. This should come totally out of Auckland rates as well as a user pay toll.

[BlackPeter]

Im not into horse racing or gambling but it looks like a good business case there.

New Zealand Thoroughbred Racing chief executive Bernard Saundry said the industry has lost nearly $3 million in the last year due to abandoned races.
He said the economic flow-on to everyone in the industry is huge and synthetic tracks would go a long way to providing certainty for trainers and owners.

"I don't see racing as a rich man's sport. It's a sport that employs directly and indirectly more than 50,000 people, it has an economic impact of $1.6 billion a year and it has a major reach right across the North and South Island - and the export opportunity not only for horses but for people to go and explore the world.''

Well, he would say that, wouldn't he? That's what he is paid for. So predictable - LOL.

But worse is that even the numbers from the racing industry chief promoter don't make a business case for the tax payer.

Lets assume for arguments sake it would be a reputable industry. So, he says the racing industry "lost" $3m last year due to bad weather. Not sure how he measures that, but why does this mean the taxpayer should put up $30m to allow some industry to reduce their losses, but worse why to allow some rich pricks to become richer? Whats in it for the taxpayer?

Is it now job of our government to subsidize the "losses" of any industry which might occur some? Privatizing gains and socializing losses? For sure, if taxpayers are called to pay to reduce the losses of the gambling industry, than we should as well pay for the losses of breweries, or of tobacco industry, or for the losses of the booze depot next door and of course for the losses of the mining industry (actually - for latter there would be an argument, given that the government caused them due to their unlimited incompetence).

But a more relevant question would be - why should the taxpayer cough up $30 m to support the gambling industry? Racing is one of these industries sucking money out of poor people they can't afford to spend. Racing is like smoking, drinking or taking dope - addictive and damaging to your health and your finances. Taxpayers are not just subsidizing bad habits but as well having to foot the bill to feed afterwards the children and families of gambling addicts.

Our glorious government is not just wasting tax payer money, they spend it to damage our country!

Shame ...