Willis on RNZ:
RNZ: "It is certainly not narrow; they have said it would be a tax on every piece of commercial property in the country. That will hit many, many businesses, from a corner dairy to a manufacturing facility. It will also hit everyone who saved and put money into KiwiSaver, because some businesses in their KiwiSaver will now face a new tax. "And it will hit every Kiwi who saved hard for a rental property or an investment in a commercial business. To call it narrow is completely misleading."
Labour policy:
Labour:
- The family home, farms, KiwiSaver, shares, business assets, inheritances, and personal items will be exempt.
- Nine out of 10 New Zealanders won’t pay tax on the property they own, and everyone will get three free visits a year to the doctor.
- A targeted capital gains tax [28%] on the profit made after 1 July 2027 when a commercial property or residential property (excluding the family home) is sold.
Every dollar raised will go straight into the health system, including funding three free doctor’s visits a year for everyone with a new Medicard.
Eg; A landlord or property developer or business buying a property for $650,000 and selling it for $900,000 with a gain of $250k will potentially pay up to $70k in CGT and take home at least $180k. I assume usual cost base rules will apply and you'll pay less if you spent money improving it, renovation etc.
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