Property Council Delighted with Taxation Bill
13 December 2006
Property Council Delighted with Taxation Provisions Bill
The Property Council of New Zealand is confident that the passage of the Taxation (Annual Rates, Savings Investment and Miscellaneous) Provisions Bill, passed last night, is a positive step to encourage savings and investment in New Zealand.
The Property Council worked on behalf of the property industry to ensure the Bill was passed with amendments regarding the taxation treatment of property investments.
“The final format of the Bill is a great outcome for the Property Council and our members, but more importantly for mum and dad investors in property,” says Paul Duffy, National President, Property Council of New Zealand. “It was imperative that the Select Committee reviewing the Bill standardised taxation treatment across the board to create a level playing field between various investment alternatives.”
If the Bill had been passed without amendment it would have exclude the majority of property trusts from being able to elect into the proposed Portfolio Investment Entity (PIE) regime.
“The Property Council was actively involved in working with ministers and officials to ensure the Bill provided an even-handed taxation regime. All of those involved were receptive and pragmatic with regards to the Property Council’s position. The resultant tax rules mean investors will make decisions based on the relative merits of the investment, rather than taxation advantages and disadvantages.”