John Key in 2012:
I hate capital gains taxes – I just don’t like them. The reason I don’t like them is that, in political terms I don’t think they work.
If government was prepared to do with a capital gains tax what had been done with GST – put it on “virtually absolutely everything with no exceptions – they work well.
Because, in theory, if you earn NZ$100,000 from going out there and having a job, and you pay tax on it, well fair enough. If you earn NZ$100,000 from buying a property, well you probably should pay tax on that – fair enough.
But this is where the problem comes along, and that is, that no politician has the guts to do that. Because they go, ‘well that’s a vote-loser.’ They turn around and say, ‘OK, we’re going to have exemptions – the exemptions are all private housing.
John Key in 2015
BREAKING NEWS – Govt to introduce capital gains tax on properties sold within two years of purchase
— RNZ News (@rnz_news) May 16, 2015
Update from Radio New Zealand:
The Government is going to introduce a capital gains tax on properties that are sold within two years of purchase.
The new tax will be included in this Thursday’s budget.
Prime Minister John Key made the announcement at the party’s lower North Island regional conference in Silverstream, near Wellington.
The new tax will not apply to the family home, death estates or properties sold as part of a relationship property settlement.
It will come into effect from 1 October and the rate will be the same as the seller’s income tax rate.
Other measures will require all non-resident buyers and sellers to provide a tax identification number from their home country along with identification such as a passport.
They must also have an Inland Revenue Department number and New Zealand bank account.