Property Tax Bill Progresses

New tax laws around the purchase of residential properties by offshore people has made progress in Parliament.

The second reading of the Taxation (Land Information and Offshore Persons Information) Bill was completed by 109 to 12 with National, Labour, Greens, Maori Party, ACT and United Future in favour.

Revenue Minister Todd McClay said the select committee had reported on the bill to a short time table. The bill brought into effect the Govt’s Budget announcements around the purchase of residential land for speculative profit and requires offshore persons to provide IRD numbers and bank account details when purchasing residential investment properties.

Labour’s Grant Robertson said the legislation was half hearted and confused. It was an attempt to be seen to be do something about the housing problem, but would achieve little. IRD wanted to make changes to the bill to strengthen it, but instead it had been watered down.

Time pressure to get the rules in place by October 1 meant it was full of errors and Mr Robertson said he had no doubt amending legislation will be back before the House in the near future.

Labour would support the bill, but believed it did not go far enough and just created red tape with little off-setting gain.

MPs then returned to the interrupted first reading of the Taxation (Bright-line Test for Residential Land) Bill.

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