The Labour Party has confirmed its plans to end tax breaks for property speculators if it wins September’s election
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Investors who offset losses from rental property portfolios against tax owed on other income would lose that tax break if Labour wins the election in September.
Leader of the Opposition Andrew Little says that his party would scrap negative gearing in a bid to “restore the dream of homeownership” while using the extra tax revenue for grants to improve heating and other standards of 600,000 homes.
“Labour will close the speculators’ tax loophole,” Little said. “Losses on rental properties will be ring-fenced meaning they will no longer be able to be used to reduce the tax that speculators owe on other income. This will create a level playing field for home buyers and help families get a fair shot at buying a place of their own.”
Little says that $150 million in taxes last year by speculators; many of them foreign investors, who would also be banned from buying existing homes in New Zealand.
The opposition’s plans would also mean additional income tax on the capital gain of selling a rental property within 5 years of purchase, a move designed to dissuade short-term speculators.
Little has accused National of allowing speculators to “run riot” with taxpayers effectively subsiding their purchases. Scrapping the current rules will mean taxpayers saving $1.2 billion over a decade he says.
Leader of the Opposition Andrew Little says that his party would scrap negative gearing in a bid to “restore the dream of homeownership” while using the extra tax revenue for grants to improve heating and other standards of 600,000 homes.
“Labour will close the speculators’ tax loophole,” Little said. “Losses on rental properties will be ring-fenced meaning they will no longer be able to be used to reduce the tax that speculators owe on other income. This will create a level playing field for home buyers and help families get a fair shot at buying a place of their own.”
Little says that $150 million in taxes last year by speculators; many of them foreign investors, who would also be banned from buying existing homes in New Zealand.
The opposition’s plans would also mean additional income tax on the capital gain of selling a rental property within 5 years of purchase, a move designed to dissuade short-term speculators.
Little has accused National of allowing speculators to “run riot” with taxpayers effectively subsiding their purchases. Scrapping the current rules will mean taxpayers saving $1.2 billion over a decade he says.
