My electorate team was delighted last night to have our revenue spokesman Stuart Nash as their guest speaker. Stuart’s presentation filled in some of the knowledge gaps around the tax package announcement.
• The stark choice. The one-off $6b in revenue from flogging off state assets or a rising $2b+ annual stream from CGT.
• Most Kiwis won’t pay it. Only one in ten New Zealanders own more than one property and given Canterbury is exempt for a five years or more and family baches can be handed down without involving CGT, most will be unaffected by this part of the Labour tax package other than gaining $5000 of exempt income.
• This is not Death Duties in drag. If parents want to pass on the family home to their offspring on death or even earlier, so long as it is not sold, it is not subject to CGT, allowing the parental property to be occupied or tenanted
I was also heartened to have dinner on Saturday night with friends Pam and Rob who own a couple of investment rentals. A small part of me thought their Labour commitments might be tested. Not at all. As working people they agree all income needs to be subject to tax, whether its their wages or any profits derived from property investments. Like most Kiwis, they believe in fairness.