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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news