The Taxpayers’ Union is calling out Finance Minister Grant Robertson’s refusal to rule out extending the 5-year bright line test, labelling it a de facto capital gains tax on housing.
Union Spokesman, Jordan Williams, said:
“Just two months ago Mr Robertson was in the media swearing black and blue that Labour would not change taxes over and above the new 39% income tax rate. Now he’s warming up for a U-turn.”
“Extending the bright line test is effectively imposing a nasty capital gains tax – at up to 39% – for those who sell within ten years. That would be one of, if not the highest, capital gains tax rates in the world.”
“And the tax won’t make housing any more affordable anyway. Its impact on the market would be like a stamp duty, reducing liquidity, and hammering those who have to sell to cash out for personal reasons.”