There will be a lot of worried locals as a result of the government’s efforts to re-engineer our tax system - and we’re not talking about the wealthy.
The Tax Working Group claimed that the family home will be exempt, but that exception is taken away for anyone who lives on a section of more than 4500 square metres. The reality is, that’s a little over half a rugby field.
Almost 24,000 properties right here in the Bay of Plenty fall into that category, whether it be lifestyle blocks, orchards, or simply homes built on a large section. Most of these are a lifestyle, not a business.
Under a Capital Gains Tax, the government will grab 33 per cent of the gains when these properties are sold, even though for those families, it is their family home.
At the same time, the multi-million dollar family home in Auckland will be tax free, but those New Zealanders who choose to buy a block on the outskirts of town get punished. How is that fair?
Even the family home on a smaller section isn’t protected. Anyone who has taken in flatmates or boarders to help pay their mortgage could find it much harder to make it work.
Anyone running a business from home will be fretting about whether they are building a future or creating a future tax liability.
National will fight the government’s proposed tax grab every step of the way. We will repeal a Capital Gains Tax and we will not introduce any new taxes in our first term.