Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Rental property owners confirmed as tax payers

Rental property owners confirmed as tax payers

Official Information shows that the perception that rental property owners don't pay tax is wrong.

Inland Revenue has confirmed that in the year ended March 2013, rental property owners paid nearly half a billion dollars in tax on their rental income.

This discredits a widely held perception that rental property owners have a tax advantage and don't pay tax. The new information has just become available as a result of an Official Information Act request made by the NZ Property Investors’ Federation (NZPIF).

The perception was first promoted by the Tax Working Group in 2009. It claimed that rental property should be taxed more as it took money out of the tax system rather than paying into it. However only Inland Revenue data from one year, 2008, was used to back their claim.

Based on the Tax Working Group’s claims, Government withdrew the ability of rental property owners to claim depreciation, a benefit available to other investments. This has increased the cost of providing rental homes to tenants by $700m a year, or $33.65 per week, per rental property.

The newly acquired Inland Revenue data shows than over the last 33 years, there have only been two years when rental property owners did not pay tax on rental income. This was in 2007 and 2008 when mortgage interest rates were high.

"This Inland Revenue information confirms that rental property owners are tax payers and contributors to the New Zealand economy" says NZPIF Executive Officer, Andrew King. "It is also a warning to rental property owners that rental prices need to rise now if they are to have any chance of even partially offsetting the current round of interest rate rises".

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news