There are similarities between the tax increase on superannuation fees, now reversed, and tax increases on rental property.
Both were to “even up the playing field”, both are extremely important parts of people’s lives and advice from officials for both was not to do it.
Another similarity is that the Government bowed to large corporations who didn’t want to pay the extra tax.
The Government hasn’t reversed removal of interest as a tax deduction for the vast majority of rental providers in New Zealand. This is bad news for the majority of tenants.
Large KiwiSaver providers argued that the proposed tax increase would be passed onto savers. Regarding the tax increases on rental property, the NZ Property Investors Federation (NZPIF) also pointed out that these would be passed on to tenants. Various government departments pointed this out as well.
The NZPIF calls for the government to be consistent and reverse the tax increases on rental property as well.
Andrew King
President, NZ Property Investors Federation
