Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Holiday home sector at risk if CGT includes baches

Holiday home sector at risk if capital gains tax includes the family bach

A capital gains tax that included the family bach could have a detrimental impact on the amount of accommodation available for domestic and international visitors, says holiday home management company Bachcare.

Leslie Preston, Founder of Bachcare says, “The holiday home sector is a significant contributor to visitor accommodation in New Zealand and many regions have a heavy reliance on holiday homes to provide accommodation, as there is little in the way of commercial accommodation. Without this accommodation option smaller regions would not benefit as much as they currently do from tourism.

“A capital gains tax would be another disincentive to owning or continuing to own a holiday home. We accept that it is an asset for the owners but, for many, it isn’t an investment particularly if it’s been in the family for generations and it’s certainly not a lucrative business that should have further taxes applied to it.”

“On average a holiday home costs around $3,000 a year to own, including rates, insurance, electricity, gas, upkeep and maintenance etc. Owners spend another $6,000 a year renovating or maintaining their properties. If an owner chooses to rent their place to visitors, they might make around $12,000-$15,000 per year based on an average daily rate of $200.00 - $250.00 and having the property occupied approximately 60 days a year. Once all costs are paid (excluding mortgage repayments) there’s not a lot left over, if anything.”

“It is also becoming increasingly expensive to own a holiday home with a number of local Councils having introduced or considering the introduction of commercial and targeted rates on holiday home owners over and above their residential rates if they rent their properties out on a short-term basis. Any further added costs or taxes will make it very hard for owners to afford to keep them.”

“This means everyone loses out, the bach owner and their families, the visitors wanting to enjoy of slice of real New Zealand by staying somewhere a bit different and the regions who won’t benefit from visitors spending money in their towns.”

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Commerce Commission: Retail Fuel "Not As Competitive As It Could Be"

The Commission has outlined some options it considers could improve competition. There are two broad sets of options it thinks may have the potential to help create a competitive wholesale market. These are:

• Greater contractual freedom to make it easier for resellers to switch between suppliers; and
• Enabling wider participation in the majors’ joint infrastructure, notably the shared terminals and supporting logistics involved in their borrow-and-loan system.
Further options, including improving the transparency of premium petrol prices, are discussed in the draft report. More>>

 

Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>

ALSO:

School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>

ALSO:

IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>

ALSO:

Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>

PM's Post-Cab: Bad Mail

Cabinet was updated on the process around prisoners sending mail, following the accused Christchurch gunman sending letters that "should have been stopped". All mail of "high concern prisoners" will now be checked by a specialist team and a changes to the legal criteria for witholding mail are expecting to go to a cabinet committee in this parliamentary session. More>>

Welfare: Ongoing Drug-Test Sanctions Contradicts Govt’s Rhetoric

Reports that two-thirds of beneficiaries who fail drug tests are still having their benefit sanctioned contradicts the Government’s so-called health approach to drugs. More>>

ALSO:

Welfare: More Measures To Help Those Facing Homelessness

Ministers have announced $54 million in Government funding for initiatives which will support at-risk individuals and whānau to stay in their existing tenancies. The funding will also provide additional wrap around services. More>>

ALSO:

Corrections: New Strategy On Māori Reoffending And imprisonment

Authentic co-design with Māori, incorporating a Te Ao Māori worldview, and greater connectedness with whānau are key elements of Hōkai Rangi, Corrections’ new departmental strategy designed to address the long-term challenge of Māori reoffending and imprisonment. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels