Capital Gains Tax

[fungus pudding]

I'm with you SBQ.

They pulled the same stunt with GST.

Aussie's GST model far superior to NZ's and everyone over there copes easily with the GST exemptions that, by rights, New Zealand and New Zealanders should also have.

Don't overlook the downside of CGT in Australia - particularly its effect on industrial properties.

[FIsaver]

This is pretty much my summary of why I'm happy for a CGT. Regardless of $1 or $5Million I see no reason for why income & capital gains shouldn't be taxed to make it more fair for all. Yes it's going to be tough for the middle class but fairs fairs...

Attachment 10341

[elZorro]

This is pretty much my summary of why I'm happy for a CGT. Regardless of $1 or $5Million I see no reason for why income & capital gains shouldn't be taxed to make it more fair for all. Yes it's going to be tough for the middle class but fairs fairs...

Attachment 10341

Interesting chart FIsaver. I saw this comment from David Slack on CGT in the SST yesterday.

https://www.stuff.co.nz/national/pol...he-tax-we-need

[Bjauck]

This is pretty much my summary of why I'm happy for a CGT. Regardless of $1 or $5Million I see no reason for why income & capital gains shouldn't be taxed to make it more fair for all. Yes it's going to be tough for the middle class but fairs fairs...

Attachment 10341

That chart applies to the USA. The primary residence is a much much greater component of NZ household wealth with shares and retirement savings comprising a much smaller component of household wealth in all wealth bands. A CGT in NZ would bring in much less tax as the primary residence exclusion would remove a much greater percent of capital assets.

Add to that the facts that the lack of property transfer stamp duties and the NZ share market is so comparatively small for the size of the economy, then a CGT on investment housing would probably just mean that more middle class wealth will end being diverted into the primary residence (especially for those that do not need to earn taxable income from their wealth).

So it would not be fair for those who invest their capital in productive assets instead of a primary residence. In NZ do we really need the primary residence to be given another tax break?