12-04-2012
NZPIF backs Productivity Commission tax findings
Landlords.co.nz
The Productivity Commission's Housing Affordability report findings around the tax treatment of property have been welcomed by the New Zealand Property Investors Federation (NZPIF).
"The Commission saying that the tax advantages attached to housing are not as large as often claimed backs up what we have been saying for many years and further backs up comments by the Society of Accountants and even the IRD," said NZPIF president Andrew King.
King said the NZPIF agreed with the commission that "whether to adopt a capital gains tax on housing should be based on a coherent set of principles that have general application, not just to housing."
The NZPIF also said the Commission's report echoed their own report to the Tax Working Group that rejected ring-fencing losses on residential investments from other taxable income.
However, the NZPIF is concerned with the Commission's recommendation on low income housing and its claim that the private sector does not have a place in this segment.
"Private landlords already house the majority of low income households in New Zealand very effectively," said King.
"This seems to be confirmed by the Commission as well, saying that rental prices have not kept pace with other cost increases, implying that rental prices have been kept lower than they might have been.
"Given this, it seems odd that they recommend giving more state assets and ongoing financial support to the community housing sector so they can build up in competition to the private sector."
Source: Landlords.co.nz