Tax – We either tolerate it, or we pay it. Recently, and without any chance for consultation, the Government in New Zealand recently implemented new rules which will lead to far more tax collection when property is sold, or ownership altered, within a 10 year period. But wait, there is more here – much more.
Check out the following for more opinion pieces by Darcy Ungaro recently on this topic
In addition to changing capital gains tax rules, further proposed legislation if passed, will cease the ability of those in the business of providing accommodation to others, to claim interest as a deductible expense. What used to be referred to as a standard accounting principal, is now being called a loophole. Amanda Martin – specialist tax adviser, is my guest today and we’re talking about what these changes actually mean, and how they could have a much larger impact than what everyday people may initially appreciate.
In my conversation with everyday property investors in the last two weeks, I’m stunned how even they don’t fully appreciate what these changes mean for them. If this is how those that are affected think, I can only guess the bulk of NZ hasn’t a clue around what just happened, and what some of the outcomes could be.
If you’re trying to grow wealth through property this is an important episode yes, but even for those without property, if you’re trying to achieve more than the average in any area, this tax move could be more symptomatic of a larger trend we all need to wise up to.
It’s raining down cheap money all over the world right now, but property investors are the ones currently being targeting for getting wet – will any of these moves achieve good outcomes? Will cutting down tall poppies cull big bubbles? Will this really stop with property investors only? I’m not sure it will.
Today’s show is a mix of fact and opinion – so I would ask a favour from you if you don’t mind: Consider not if these changes affect you alone – try to think of some of the broader, secondary impacts this could have on rents, private ownership in NZ, our ability to create choices in our future – think about what other honey pots could be targeted and what that means for your life.
Now as I’ve been mentioning recently around Clubhouse, make sure you follow me at @darcyungaro and follow the NZ Everyday Investor. Last week I chatted with Amanda from today, Dean from last week, and another guest from a future episode – it’s an awesome opportunity to hear other perspectives and get a chance to ask some questions you may have of your own – if you have an iphone and you want an invite, simply hit me up and I’ll fire one through to you.
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