Mallard gets it right on Capital Gains Tax

hat tip Keeping Stock

It isn’t often that you will hear me praise Trevor Mallard but on the issue of capital gains tax he get’s it pretty much right:

There is currently a tight housing rental market in New Zealand and especially in Auckland. The tightening up of the tax approach around property owners liability for tax on capital gains is already pushing some landlords out of the market and causing rents to go up. Both TV channels have reported on this recently.

Landlords are making it clear that it is their intention to recover their extra costs (write off forgone). Of course they won?t be able to do it overnight ? but they will over time.

Far be it from me to disbelieve Labour’s campaign manager on the issue of capital gains tax. I wonder if Trevor was included in the planning around capital gains tax. One would presume not given Labour’s new enthusiasm for the tax.