Expansion of an existing measure, rather than a new tax
Expansion of an existing measure, rather than a new tax
26 November 2020
Finance Minister Grant Robertson is asking Treasury to look at a range of options to rein in house prices - including extending the bright line test.
Critics claim that would amount to introducing a capital gains tax by stealth.
But Massey University lecturer in taxation Alison Pavlovich says there's both a yes and no answer ....
She says yes , it would bring in more tax payers, but no, it's already a rule, so it would only be an expansion of something that already exists.
The bright line test means the sale of a second property within five years of buying it, sees a tax imposed.
It was introduced by National in 2015, and extended by Labour in 2018, from two years to five.
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