On 23 March 2021, Labour announced surprise tax changes that left property investors reeling...
- Extension of the bright-line rule to 10 years
- Removal of interest deductibility for residential rental properties
- Exemption from these rules for new builds
Since then, we have had an election resulting in a change of government, which will likely see amendments to these rules.
Are you concerned about the changing tax rules and how they will affect you?
Knowledge is power, so GRA have created this page to provide insights and information to help you make good property investing decisions in the constantly changing tax environment.
Here you will find articles, webinars, and commentary, which we will update as new information comes to hand.
Coalition Government Tax Changes
Today, New Zealand’s coalition government with National, Act and NZ First was finally announced. Some important decisions around tax and property investment have already been confirmed. Note that at time of writing we are still waiting on the detail around much of this, and we will further provide updates as they are announced. Reversal of interest non-deduction rulesThe thing that we ... More
Tax Changes - Trust Tax Rate to 39%
In the May 2023 Budget, the Labour government announced that from 1 April 2024, the trust tax rate will increase from 33% to 39%. What does this mean for you and your trust?What, if anything, can you do to manage this?Should you still have a trust?These questions are answered in the webinar Anthony Lipscombe and I presented on 24 May ... More
GST for all Airbnb properties from 1 April 2024
Anyone who provides lodging or ride-sharing services through an online marketplace in New Zealand, such as Airbnb or Uber, will be affected by new Goods and Services Tax (GST) changes starting from April 1, 2024. Note that earlier this year, the National Party expressed its intention to repeal this change. However, it is not part of the published “100 day ... More
Tax Changes and the Upcoming Election
Lots of our clients are asking GRA what is on offer from the various parties for the 2023 election, so I thought it would be useful to recap the tax changes made by Labour in their past two terms, and then canvas the different offerings from political parties to reverse their changes. As a disclaimer, I’m not a fan ... More
What is rollover relief?
Prior to the inception of the bright-line rule, it was relatively common practice to restructure the ownership of residential property to get better asset protection, estate planning and tax outcomes, or when circumstances changed. For example, you might convert an existing home to being a rental, or own a holiday home personally that you want to be protected in ... More
Good News Re GST
I want to close the year by highlighting a couple of positive developments in the GST rules – one that came into effect earlier in 2022, and one that is proposed to come into effect from next year.Earlier this year a long-standing issue that prevented GST from being claimed on asset transfers within a group structure was resolved. To ... More
Interest Limitation Law About to Pass (Finally)
Almost a year to the day since the Government announced rules to eliminate tax deductions on interest for property investors, the legislation has all but reached its final destination. In the last two weeks the Select Committee report on the first draft of the legislation has been released and amendments have been made to the first draft reflecting these ... More
The government have made changes to two areas of legislation that affect property investors: tax (interest deduction and bright-line), and the Resource Management Act. Tax ChangesIn October the government finally introduced legislation into parliament setting out the proposed interest deduction rules. Here is a summary of the highlights.a) We still do not have finalised legislation. Even these draft rules are ... More
Tax Changes Update - October 2021
The Government’s release of draft legislation this week was disappointing on a number of fronts. First, what was expected to be complex legislation has been successfully made nearly indecipherable. Second, it is of course disappointing that they are pressing ahead with the rules being effective from 1 October despite only this draft version being available to taxpayers at this ... More
Tax Changes Update - September 2021
Most readers will be well acquainted with the fact that we are expecting the interest deductibility rules to kick in from 1 October 2021. You will also likely be aware that as at the time of writing (early September), these rules are yet to be revealed. This is an entirely unacceptable state of affairs, leaving investors to make purchase ... More
Impact of new legislation on property investors and tenants
There have been many changes to legislation affecting property investors over the past 4½ years. We have had:• Healthy Homes Standards• Loan-to-value ratio (LVR) changes• Requirement for heat pumps• Loss of claiming interest as an expense How have property investors reacted and what has happened? Before I go on, there is one thing I want to get off my chest first. ... More
Interest deductibility update - June 2021
On 10 June 2021, the Labour Government opened up a five-week consultation period on the new interest deductibility rules. They have released a Design of the interest limitation rule and additional bright-line rules discussion document which is lengthy and quite detailed, and reveals some interesting thinking, some of which I think is surprisingly taxpayer friendly. On first look through the document, ... More
Where is the property market at currently?
The tax changes recently announced by the Labour Government have left many property investors feeling unsettled. So I thought it would be helpful to discuss the current property market, the impact of the rules, and what you should be doing to manage this new environment. The current property market• The property market has been hot for the best part of ... More
My opinion on the new tax changes
I'm seething about these tax changes. And it’s not just the fact that Labour lied to us; it’s the whole bigger picture and the implications for ordinary New Zealanders. This Government is attacking middle New Zealand with all these housing initiatives and tax reforms – it’s mums and dads being hit, not property oligarchs. According to February 2021 stats from ... More
BREAKING NEWS: Government introduces bright-line and interest deductibility changes
As part of the Government’s property policy announcements today (23 March 2021), there are two significant changes to tax rules that will impact residential property investors. If you don't support the changes, there is a petition that you can sign (link here and at the end of this blog). I ran a webinar discussing these changes on 25 March. You ... More
Matthew Gilligan and Anthony Lipscombe discuss new 39% trust tax rate
May 2023 Tax Changes - Trust Tax Rate to 39%
Matthew Gilligan discusses tax policy with David Seymour, October 2022
Excerpt from Trusts & Tax webinar, October 2022
Tax Changes Summary October 2022
Excerpt from Trusts & Tax webinar, October 2022