EXTENSION TO BRIGHT LINE TEST ON THE WAY
Legislation which will extend the bright line test on residential property sales from two years to five years is about to enter Parliament.
Revenue Minister Stuart Nash today confirmed he is introducing a Supplementary Order Paper to the Taxation (Annual Rates for 2017-18, Employment and Investment Income, and Remedial Matters) Bill to give effect to the changes.
The previous National government introduced the bright line test which requires income tax to be paid on any gains from residential property sold within two years of acquisition, with some exceptions.
Nash says the extension means that profits from residential investment properties which are bought and sold within five years will generally be taxable.
The changes, which were signalled by the Labour Party prior to last year’s election, will help dampen property speculation and make homes more affordable, he says.
"It will ensure that property speculators pay income tax on their gains and makes property speculation less attractive.
“We need investment which grows the economy and creates jobs, not the sort of investment which distorts the residential housing market.”
Not only will the measure bring fairness back into the tax system, but reducing speculative demand will help improve housing affordability for owner-occupiers, Nash says.
Current exemptions from the bright line test will remain. They include the sale of an owner-occupier’s main home, inherited property, or the transfer of property in a relationship settlement.
The extension to the bright-line test will apply to residential investment properties purchased from the date on which the bill receives the Royal Assent, which is expected in March.
Nash adds that the passage of the bill will also enable the Tax Working Group to factor the change into any consideration of a comprehensive capital gains tax.
Auckland Property Investors Association president Andrew Bruce has previously said that the changes will impact on property speculators rather than long-term investors.
"The majority of property investors are in it for the longer than five years and are unlikely to feel massive levels of pain with the extension of the bright line test."
Poll: Should drivers retake the theory test every 10 years?
Drivers get where they need to go, but sometimes it seems that we are all abiding by different road rules (for example, the varying ways drivers indicate around a roundabout).
Do you think drivers should be required to take a quick driving theory test every 10 years?
Vote in the poll and share any road rules that you've seen bent! 😱
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49.5% Yes
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48.6% No
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1.9% Other - I'll share below
Tai Chi October - December 2024
Hi, I'm Andrew Hardwick, Tai Chi Instructor and member of NZ National Tai Chi Chuan Association Incorporated (NZNTCCA). The name of my wellness-focussed Tai Chi class is Not Strictly Tai Chi. The quirky name is a humorous twist on the name of shows like "Strictly Come Dancing", and from the fact that (a) I'm not strict and (b) If I see an exercise I think would provide a health benefit to my Tai Chi students, I will add it to my class offerings.
My Upper Hutt venue is Te Kupenga o Rongomai - Maidstone Sports Hub. Classes are in school term times only, and are open to all ages.
So far in 2024 we've had ages ranging from Mums attending while their kids are at school, through to retired people looking for healthy exercise.
No experience necessary. Experienced and beginners equally welcome
School Term 4 classes will be on the following dates
Wednesday evenings, from 7pm - 8pm
October 16th
October 23rd
October 30th
November 6th
November 13th
November 20th
November 27th
December 4th
December 11th
December 18th
Thursday mornings, from 10am - 11am
October 17th
October 24th
October 31st
November 7th
November 14th
November 21st
November 28th
December 5th
December 12th
December 19th
Enquiries welcome on 021 153 2508
Andrew Hardwick - Tai Chi Instructor
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