New Property Tax Rules Progress

by Desk Editor on Thursday, June 25, 2015 — 6:13 PM

A Bill bringing in some new rules around property purchases and taxation has been sent to select committee with a curtailed period for consideration.

Louise Upston said the Taxation (Land Information and Offshore Persons Information) Bill would authorise some of the measures announced in Budget 2015

It was intended to ensure that any foreign based real estate speculators paid their fair share of tax. This was currently the law but was difficult to enforce. Now anyone buying a second home would have to provide an IRD number. This would allow IRD to track purchases and sales of real estate and tax them accordingly to law.

Clayton Cosgrove Clayton Cosgrove said Labour would support the bill to select committee, but it was a rush job which showed the Government had been “dragged kicking and screaming” to at least be seen to do something about the issue.

The Government had resisted a register of foreign land purchases but the political pressure due to rising house prices from speculators had forced them to move. Mr Cosgrove said the Government denied it was a register, but it had all the appearances of one.

The bill completed its first reading on a voice vote was sent to the Finance and expenditure committee.

After debate the committee was given a truncated a report back date of August 17 by 63 to 53 with National, Maori Party, ACT and United Future in favour.

The House rose at 6pm interrupting the third reading of the Harmful Digital Communications Bill.

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