Tax changes - clear as mud

Landlords all over New Zealand are almost breathing a sigh of relief as John Keys recent announcement went against most of the Tax Working Groups recommendations - to hammer the landlords. In actual fact other more juicy snippets of tax reform stole the limelight in Keys 20 minute speech. However the lack of clear information and Keys keeping “mum” about changes has the housing sector thinking - if not now, then when? All signs are pointing towards the most imminent changes being, disallowing depreciation, (which investors feel they can cope with) and a fairly clear indication that capital gains tax, risk free rate of return and land tax can be ruled out for now.
Our feeling is that the decision to scrap depreciation on buildings would be a good move, as this causes problems down the track when the property is sold. We would encourage Mr Key’s reform of building depreciation to still include chattels as these assets do depreciate in the true sense.
Wouldn't you just know it, what’s important is that you make sure you speak with your accountant!! Make sure you have good advice and options to consider. You can read our Rental Tax Guide by jumping on our website and grabbing a copy.