Q+A: The impact of a capital gains tax on the 'Kiwi way of life'

February 26, 2019

Whena Owen looks at the real implications the tax would have on New Zealanders. (Source: Other)

The collection of recommendations by the Tax Working Group have been labelled by the National Party as having the potential to impinge on the 'Kiwi way of life'. 

TVNZ1's Q+A looked at the impact a possible capital gains tax (CGT) could have on New Zealanders. 

David Hanna, who works with poor urban communities sees a CGT as easing the growing divide between rich and poor. 

"If this is a process about getting a fairer society, helping tackle some of those inequality issues, that's the Kiwi way. 

"Through the media and through all these images of what one should aspire to, they're so out of reach that what tends to happen is you just stop dreaming."

At Victoria University, student Katie Brown has stopped dreaming about owning a house. She supports a CGT in the hope that it will somehow make renting and buying a first home more affordable. 

In Masterton, Joshua Kawana lives in a campervan on a relative's lawn. He welcomes any initiative that may discourage local investors buying up the housing stock. 

However, property consultant Craig Erskine does not think a CGT will help struggling New Zealanders. 

"We don't have enough houses, not enough rentals, it's not going to solve that. We don't have a supply chain."

Jason, who worked in the Australian energy sector to buy rural land in New Zealand worries that he is going to be "screwed over by a Government when I've worked hard for everything I've got". 

Head of Federated Farmers Wairarapa William Beetham says a CGT would take farm ownership away from young New Zealanders. 

"All of a sudden that dream is almost taken away from them, because they can't build up assets," he said. 

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