New Zealand Wont See Property Investment Tax
October 11, 2016 Taxation in New Zealand
On October 11th the Prime Minister of New Zealand reiterated the government’s stance that no new taxes will be implemented on the purchase or sale of properties held by foreign investors.
The Prime Minister’s statement came after a renewed call for a tax on investment by foreigners by the newly elected Mayor of Auckland, Phil Goff.
The Prime Minister explained that if the intention of a tax on investment by non-residents was to dampen the demand for housing, then the tax would not have a significant effect, as the tax would not target the right demographic.
John Key added that if the Mayor wanted to see an improvement in the affordability of housing in New Zealand, then he should instead look at improving the administrative workflow for obtaining Council Consent to build new residential properties in Auckland.
In addition to rejecting the call for a property tax, the Prime Minister also said that the government would not consider the proposal for a regional fuel tax in Auckland, which would be used to fund improvements to the area’s roading system.