The proposed capital gains tax could affect owners of more than 400,000 lifestyle properties, Simon Bridges claims.
The National Party leader told TVNZ1's Breakfast the family home will not be exempt from the proposed tax because it would be based on the size of the property the home is on, not the size of the home itself.
A tax working group in February recommended a broad extension of taxing capital gains and changes to personal income tax thresholds, retirement savings and charities. A capital gains tax (CGT) is a tax on the profit from the sale of an asset.
Mr Bridges says there are 400,000 properties in New Zealand that are over 4500sqm facing a capital gains tax, and half of them are a family home.
The Opposition says it’s crunched the numbers and farmers would be in for a hammering if such a tax is implemented. (Source: Other)
“The Prime Minister says the family home will be exempt, well they’re not ... I don’t think that’s fair.”
He says he has spoken to many New Zealanders who told him often it's not productive land that they're on.
“It is their nest egg, their retirement plan, often it’s not productive land that they’re on, they can’t actually use it economically anyway.”
He says there is inconsistency in the unfairness.
Whena Owen looks at the real implications the tax would have on New Zealanders. (Source: Other)
"Here we are in Auckland, a Remeura home, with significant value doesn’t get that tax and yet a much lower value (home), you go to Northland, you go to Southland you’re talking a 400 grand property, will get taxed even though both are the family homes.”
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