Media Release

      
 
 
 
 
 
 
 
Property Tax Statement Leaves Unanswered Questions
 
PropertyPlus has welcomed assurances that there will be no Land tax or Capital Gains tax but says vague statements regarding 'other changes' to the way property is taxed have renewed uncertainty and anxiety amongst property owners.
 
PropertyPlus Chairman, Ashley Church, says Mr Keys statement has simply moved the debate away from the kinds of taxes proposed by the Tax Working Group toward other, even more pernicious, forms of property taxation such as a stamp duty.
"As New Zealanders, we applaud the Governments moves to make the tax system fairer and more broadly based - but as Property Owners we're concerned that investors and home owners will still bear an unreasonable share of any new taxes introduced", said Mr Church.
Stamp Duties, such as those levied in Australia, are paid at the time a property is purchased and can add as much as $12,000 to a home worth $350,000 depending on the State. Mr Church says that, on those numbers, such a tax could raise over $500 million per annum in New Zealand and he is concerned that the Government may be considering such an option.
"A Stamp Duty would distort the property market and put home ownership even further out of the reach of young couples and families. I encourage Mr Key to move swiftly to remove uncertainty by giving an assurance that such a tax has been ruled out".
Mr Church says that a high level of property ownership has been the bedrock of New Zealand society for over 100 years and that the wealth kiwis hold in property underwrites the nations ability to invest in business and fund growth.
"Initiatives which undermine our culture of property ownership will erode the average kiwis ability to invest in shares, new business ventures and productive enterprises - the very things the Government is keen to encourage".
      
 
 
   
   
 
   
 
 
 
 
 
   
   

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