Quote Originally Posted by Zaphod View Post
Formal advice to the government proposes that the scheme should be extended to those without children as well. A review of the scheme is imminent, so perhaps New Zealand will end up with a very similar scheme.
LOL - just like the formal advice by the TWG that some sort of CGT should be implemented in NZ - only to be cut down by Ms Ardern in the same week they announced it. What is imminent - NZ gov't is not serious about leveling the playing field.

There are probably a dozen implementations that the Canadian gov't has done to discourage inequality (all around taxation and mostly implemented in the past 30+ years). What has NZ done in that same period? Bring in Kiwi Saver (which still screws those that contribute to it vs those that buy houses). Bring in Working for Families tax credit? - screws the individual. More money for WINZ beneficiaries? (no program to remove their dependency).

The only reason why I can shout about these issues and compare to what other countries do is more to do that people in NZ have no idea. The gov't has no idea - they never look abroad to see how similar problems are addressed. They want to reinvent the wheel. Then the OECD year after year keeps reporting that NZ has the highest 'real return' rise in housing prices among the OECD.

Just the other day I was looking at trusts in NZ and in Canada. NZ trusts are taxed flat rate 33% - but we have no capital gains tax (ideal for owning houses in the trust). In Canada, there's a whole new level of trusts available such as Inter Vivos (while alive) and Testamentary (trusts formed upon the death of a person). It seems in NZ they make no distinction between the two in terms of tax treatment. But in Canada, all Inter Vivos trusts formed are flat rate taxed at the highest marginal tax bracket (because rich people should pay more). There are special trusts like an Hensen Trust in Canada where upon death (testamentary) the settlor in his will creates a trust for the beneficiary who has disabilities. The tax dept will grant a special status to the trust where the trust is taxed at individual rates (which is much lower than the top marginal tax rate in a conventional trust). Seems fair? I think so since people with disabilities should have the benefit. Also Trusts in Canada every 21 years the assets are reassessed and CGT is paid despite the assets have not been sold.