If National wins ...

[craic]

Best way to get people to "care" is to let them make a few mistakes - and a year or two of our politicians would cure anyone - might even raise a few dead.

[Daytr]

Agree BP, I was just trying to be entertaining for a change. ;-)
I think you & a few other National supporters...

Would fall under 2 or 3 of my scenarios. Unlessit's is really crusher Collins - in this case it would be number 5 of my scenarios (i.e. I'd expect a Labour / Green / Mana / Whatever government). Seriously - if Judith Collins comes only close to the Leadership role in National, than I promise to vote for Labour until the danger is over - no matter how long it takes.

[Daytr]

After all the chat here regards a CGT, I'm surprised there isn't more comment around National's recent policy.
On face value it would appear almost totally ineffectual & that the only 'speculators' that it will hinder are those who are actually adding to the economy, the 'doer uppers'. On National Radio this morning, a wealth manager who mostly has Chinese clients said it wont impact them at all as they are looking to buy for much longer than 2 years. It may reign in some speculators who are buying & holding for just over a year to avoid tax & flick on with a decent capital appreciation, however all it means now is they hold the property for another 12 months. The 'doer upper' however is spending on materials & trades people etc, obviously an area that is good for the economy & its those sort of investors that typically want to flick on the property as soon as the upgrade is complete to repay the bank. So this ill thought out tax is going to hurt the very people who actually add to the growth of the country rather than lazy money that is being funneled & purely relying on capital appreciation. Another reactionary & poorly thought out policy from National imo.

[craic]

Not quite, unless you are of a mind to believe that JK is stupid, which is the last big mistake that Labour made. Any transaction, designed to profit or materially enhance the trader is taxable in this country. So anyone who buys to sell on at a profit is taxable and the two year period is irrelevant. Overseas buyers are now required to work through a NZ registered bank account and just to make sure, they must have a NZ IRD number. What you are seeing is a clamp down on profiteers in NZ. You will probably see a major disposal of properties just before the starting date.

[artemis]

After all the chat here regards a CGT, I'm surprised there isn't more comment around National's recent policy. On face value it would appear almost totally ineffectual & that the only 'speculators' that it will hinder are those who are actually adding to the economy, the 'doer uppers'. .................................... .

Won't make any difference to the buy, reno and flick market as they are already paying income tax on their capital gain. What? They are not? Then they are already tax evaders and should have been paying their fair share under existing rules.

Interesting to see how it pans out. Tax evaders are more likely to be caught going forward, especially if the rules are clear, as the tax will be deducted from the sale proceeds and it will be up to the seller to claim some or all back later.

[Sgt Pepper]

Not quite, unless you are of a mind to believe that JK is stupid, which is the last big mistake that Labour made. Any transaction, designed to profit or materially enhance the trader is taxable in this country. So anyone who buys to sell on at a profit is taxable and the two year period is irrelevant. Overseas buyers are now required to work through a NZ registered bank account and just to make sure, they must have a NZ IRD number. What you are seeing is a clamp down on profiteers in NZ. You will probably see a major disposal of properties just before the starting date.

"I hate capital gains taxes – I just don’t like them. The reason I don’t like them is that, in political terms I don’t think they work," Key said.

[iceman]

"I hate capital gains taxes – I just don’t like them. The reason I don’t like them is that, in political terms I don’t think they work," Key said.

This is not a CGT by any stretch of the imagination. It is simply making the existing income tax rules for speculators a bit clearer. Now noone can sell within 2 years and claim their "intent"when they bought the property was to have income for it.
The more important part of this policy is the information gathering on non-resident property investors. As craig points out, they now need an IRD number in NZ. To get that they need to provide a copy of their ID (passport) and tax number from their home country.
This at least allows NZ to build up a database on non-resident property investors. Surely that is better than empty slogans from the oppositions about taxing foreigners, when we actually have no info to build anything on.

You should also have quoted Andrew Little who yesterday said a CGT is no longer a Labour policy as "hasn'tt work anywhere else to slow down house prices".
So JK says they don't work in political terms, AL says they don't work full stop !!

[artemis]

"I hate capital gains taxes – I just don’t like them. The reason I don’t like them is that, in political terms I don’t think they work," Key said.

Sounds like neither National or Labour is calling this latest move a capital gains tax. Rather a tweak to the existing tax on traders regime to add a bright line and some additional banking / IRD requirements.

[elZorro]

Sounds like neither National or Labour is calling this latest move a capital gains tax. Rather a tweak to the existing tax on traders regime to add a bright line and some additional banking / IRD requirements.

I think the expression is, if it walks like a duck, squawks like a duck..

http://www.nzherald.co.nz/nz/news/ar...ectid=11450781

I agree with the article, the proposed CGT isn't the reason why Labour lost in 2014. It won't have garnered many votes from property investors, but there were more fundamental issues that many voters did pick up on, and let's face it, most of the marketing noise came from National's higher campaign spending.

[BlackPeter]

Interesting analysis how the NZ economy compares to our major counterparts like Australia, US, UK:

http://www.stuff.co.nz/business/indu...-rockstar.html

Obviously unsuitable reading for our resident Lefties, but otherwise - a wealth of useful economic data.