In March 2021, the New Zealand Government announced sweeping changes to the tax rules that impact residential property owners. Following public submissions, an updated Bill has been drafted ready for submission in parliament this month.
Here are some of the headlines from the Bill that has been drafted.
While a narrow exemption, it will provide some comfort to those affected.
Overall, not a great deal has been changed between the initial proposal and the Bill. Unfortunately, the reality is these rules are vastly more complex than what was previously in place. For residential property owners they must now contend with several complex rules in any given situation. In our view, the Government’s objectives could have been achieved in a less complicated approach had more consultation and thought been given to the issues earlier on.