Christopher Luxon, New Zealand Prime Minister 2023

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#3191160 5-Feb-2024 15:58

It’s a fallacy that a capital gains tax will result in affordable housing. It won’t. It hasn’t in other countries. It won’t in New Zealand.

CGT is a good idea as it broadens the tax base and should allow reduction of income tax levels but it doesn’t fix supply side inflation, which is why house prices are so high in much of the developed world.

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#3191241 5-Feb-2024 19:23

sen8or:

And if the bank gets it wrong and its not a capital gain, but a loss, will they get a tax refund if the taxman assumes the same?

If we make things too unattractive for investors, they'll simply invest in other places that are more advantageous for them, this also applies to areas that our super & kiwisaver funds rely on for returns. Moving away from realised gains to presumed gains could have far reaching unintended consequences (e.g who would bother revaluing an asset, resale of businesses manipulated to minimise capital gains etc).

Off course. It works now in business, profit or loss on a Fixed Asset

If we make things too unattractive for investors, they'll simply invest in other places that are more advantageous for them

Yes they will and ideally it wont be residential property. Now if a Govt was smart it would allow huge advantages to building NEW homes/apartments. By providing real financial benefits that replace the need for sky high rents. Or by buying and building for a reasonable margin for FHB's that gives a generous financial benefit

Like all life on Earth its about me. Be smart. Reward the selfish (normal) mentality and get an end result thats about them, the greater good. You would find that selfish rich investors will be building what NZ needs.Which we don't as its far easier to sign a S+P agreement and move in, in 3 weeks. That doesnt work as you are just recycling the same asset and not adding to housing stock.

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#3191242 5-Feb-2024 19:26

Handle9: It’s a fallacy that a capital gains tax will result in affordable housing. It won’t. It hasn’t in other countries. It won’t in New Zealand.

CGT is a good idea as it broadens the tax base and sentivise new buildshould allow reduction of income tax levels but it doesn’t fix supply side inflation, which is why house prices are so high in much of the developed world.

Not really a fallacy. If you want to decide on a regulated supply and demand, it will help, it will decrease demand. But overall you need to incentivise new builds, that is severely lacking in NZ. Severley.

Handle9

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#3191246 5-Feb-2024 19:38

tdgeek:
Handle9: It’s a fallacy that a capital gains tax will result in affordable housing. It won’t. It hasn’t in other countries. It won’t in New Zealand.

CGT is a good idea as it broadens the tax base and sentivise new buildshould allow reduction of income tax levels but it doesn’t fix supply side inflation, which is why house prices are so high in much of the developed world.

Not really a fallacy. If you want to decide on a regulated supply and demand, it will help, it will decrease demand. But overall you need to incentivise new builds, that is severely lacking in NZ. Severley.

How’s that working out in Australia?

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#3191250 5-Feb-2024 19:59

Handle9:
tdgeek:

Handle9: It’s a fallacy that a capital gains tax will result in affordable housing. It won’t. It hasn’t in other countries. It won’t in New Zealand.

CGT is a good idea as it broadens the tax base and sentivise new buildshould allow reduction of income tax levels but it doesn’t fix supply side inflation, which is why house prices are so high in much of the developed world.

Not really a fallacy. If you want to decide on a regulated supply and demand, it will help, it will decrease demand. But overall you need to incentivise new builds, that is severely lacking in NZ. Severley.

How’s that working out in Australia?

You tell me. Obviously AUS and NZ are really really identical in population, mineral resources, so yes its identical..... "Apparently" CGT is common elsewhere, how's that working out?

Advise us on why CGT has been bad for AUS.

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#3191251 5-Feb-2024 20:02

There’s a CGT in most countries and most developed countries have significant, and growing, house price inflation. Australia has doubled down with a rent crisis. A CGT isn’t stopping house inflation.

If you can show me where I said a CGT was bad for Australia, or any country, I’ll answer what is a dumb question.

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#3191252 5-Feb-2024 20:04

https://en.wikipedia.org/wiki/Capital_gains_tax

Quite a long list. End of the day CGT is the same as PAYE, the latter is just easier, but both are Income Tax. Yes, there are fringe issues, it needs to be realised. Businesses in NZ pay CGT, Sale or Loss on the Sale of Fixed Assets. It needs to be standard. Income is income. Income Tax, also knows as a tax on income. Income isnt just derived from payslips

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tdgeek

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#3191253 5-Feb-2024 20:08

Handle9: There’s a CGT in most countries and most developed countries have significant, and growing, house price inflation. Australia has doubled down with a rent crisis. A CGT isn’t stopping house inflation.

If you can show me where I said a CGT was bad for Australia, or any country, I’ll answer what is a dumb question.

Grow a pair.

So by your dumb equation, CGT causes or to your benefit, is a solid cause of house price inflation. There’s a CGT in most countries and most developed countries have significant, and growing, house price inflation.

So lets not have CGT so we can enjoy the insignificant and low house price inflation that we have in NZ.

Sorted...

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#3191254 5-Feb-2024 20:10

tdgeek:

Handle9: There’s a CGT in most countries and most developed countries have significant, and growing, house price inflation. Australia has doubled down with a rent crisis. A CGT isn’t stopping house inflation.

If you can show me where I said a CGT was bad for Australia, or any country, I’ll answer what is a dumb question.

Grow a pair.

So by your dumb equation, CGT causes or to your benefit, is a solid cause of house price inflation. There’s a CGT in most countries and most developed countries have significant, and growing, house price inflation.

So lets not have CGT so we can enjoy the insignificant and low house price inflation that we have in NZ.

Sorted...

I can't see any point in responding to your silly post.

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#3191255 5-Feb-2024 20:37

Handle9:

I can't see any point in responding to your silly post.

So why did you? Its fine being Mr Negative, if you have something to offer, offer it. But as many of us know, its all about finding something to disagree with. Its an adult forum, often no one is right and noone is wrong , bias is there for everyone. But a discussion benefits everyone. If its just about its scoring, take up darts.

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#3191257 5-Feb-2024 20:41

A CGT won't shift the dial if we add 200,000 people every year.

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#3191258 5-Feb-2024 20:46

GV27:

A CGT won't shift the dial if we add 200,000 people every year.

Two totally different topics. CGT makes ALL income earners pay. Immigration is another issue, and yes its a big issue. Like many others, but we have tax cuts soon so we will all be better off, getting NZ back on track is apparently the theme...

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#3191259 5-Feb-2024 20:57

GV27:

A CGT won't shift the dial if we add 200,000 people every year.

Yip. There's a shortage of houses.

It's the same in other developed countries where there is currently a CGT. House prices are out of control there regardless of the CGT. It doesn't make a significant difference to housing affordability.