Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


National ignoring tax advantages of property speculation

22 May 2017

National ignoring tax advantages of property speculation

The Government was told in 2011 by its own Savings Working Group that property investment enjoyed unfair tax advantages over savings, but National has consistently ignored the advice and the housing crisis it has fuelled, the Green Party said today.

A new book, Tax and Fairness, out this month says an unfair tax system works in favour of property investors over everyday savers and KiwiSavers.

“It’s good that Steven Joyce today recognised the need to tax income fairly but his Government has failed to do anything about it for nine years,” said Green Party Co-leader James Shaw.

“Budget 2017 should be about closing the tax loopholes enjoyed by property speculators by implementing a tax on capital gains — one which excludes the family home.

“But nine years in and National are unlikely to suddenly decide to make our tax system fairer and our economy more resilient.

“National’s own Savings Working Group recommended in 2011 that the Government should address the unfair tax advantages enjoyed by property investors and incentivise private savings by creating a single low-cost default KiwiSaver scheme.

“They warned that New Zealand has ‘inadequate national saving and an overdependence on foreign borrowing meaning… too much money has ended up in inflated house and farm prices and led to an overvalued exchange rate hurting exports.’

“Substantial differences in effective tax rates favouring housing over savings products like term deposits and KiwiSaver have a big impact on saving and investment behaviour,” said Mr Shaw.

“The Green Party will introduce a comprehensive capital gains tax (excluding the family home) and deliver a single low-cost default KiwiSaver scheme to drive down costs in the industry and increase people’s nest eggs when they retire.

“Incentivising private savings will add genuine resilience to New Zealand’s economy. Greater savings will help lower the cost of capital for businesses to invest and lower interest rates here at home will take pressure off our overvalued exchange rate, helping exports,” said Mr Shaw.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Simon Bridges: National Leak Inquiry Points To Jami-Lee Ross

John Billington QC has independently assessed the investigation report. It is his opinion that on the balance of probabilities the evidence establishes that Jami-Lee Ross was the person who leaked the expenses and the sender of the text message.

I accept both the investigation report and the opinion of Mr Billington.

Earlier today I visited Jami-Lee Ross with Paula Bennett and explained to him the report and the opinion of Mr Billington and gave him an opportunity to respond. I was not satisfied with his explanation. More>>


New Hager Investigation: War Crimes, Sexual Assaults And Coverups In Armed Forces

A string of current and ex-New Zealand Defence Force staff have contacted Hager since the book he co-authored with Jon Stephenson – Hit & Run – was published in March 2017... More>>


Israel's Anti-Boycott Law: NZ Activists Fined Over Lorde Cancellation Raise $12k For Charity

New Zealand activists being fined in Israel for urging pop singer Lorde to cancel her concert have raised more than $12,000 for a Palestinian charity. More>>


NZEI: Teacher Shortage Plan Falls Short

NZEI Te Riu Roa has welcomed the Government's announcement of new initiatives to address the growing teacher shortage, but says teaching must become a sustainable career choice if there is to be a long-term solution… More>>


New Study: Women’s Refuge Examines Reproductive Coercion In NZ

While some research on reproductive coercion has been undertaken in other countries, like the United States, to date there has not been a comprehensive study of reproductive coercion in New Zealand – making this study a first of its kind. More>>


Gordon Campbell: On The Govt’s Feeble Response To Loan Sharks

The coalition government’s attempts to minimise the harm done by loan sharks comes nearly 12 years after a major report in 2007 had identified how fringe lenders were aggressively targeting low-income Pacific Island and Maori communities. As that study had found, only 43% of those accessing loan sharks were, at the time, in paid employment. More>>


Sewer Drug Tests: Wastewater Testing To Roll Out Nationally

Testing will be rolled out to 38 sites across the 12 Police districts this month and will capture 80% of New Zealand’s population. Police Commissioner Mike Bush says wastewater testing is crucial to Police’s understanding of drug consumption in our communities. More>>


Four Stood Down: Two Probes Into Police Trainees Are Criminal Investigations

Two of the four investigations into trainee police over claims of misconduct are criminal investigations, the Police College training manager says. More>>


Earthquake Claims: One Stop Shop Launched

The Greater Christchurch Claims Resolution Service... will provide independent case management to bring together fast tracked claims handling, specialist engineering support, psychosocial support, and legal expertise to help resolve claims. More>>





InfoPages News Channels