Daily review 23/03/2021

Written By: - Date published: 5:30 pm, March 23rd, 2021 - 12 comments
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12 comments on “Daily review 23/03/2021 ”

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  2. Sabine 2
    23 March 2021 at 7:36 pm

    interesting read, keeping in mind the stories from the other blogs.

    https://www.nzherald.co.nz/nz/government-officials-advised-ministers-against-applying-key-measures-of-its-housing-plan/YUEXMSFIWE7QJ5OJVLRZSUZHA4/

    “The Government decided against following Treasury advice, which said the length of the bright-line test should be quadrupled to 20 years.

    Ministers also went ahead with their plan to lift the first-home grant cap, despite the fact that housing officials advised that this was likely to “inflate house prices”.

    And, given the “extremely tight time constraints” the Treasury was under, it also recommended that the Government not go ahead with its plan to scrap interest deductibility loopholes.”

    edit: forgot copy / paste

    • Muttonbird 2.1
      23 March 2021 at 9:45 pm

      Treasury also said the housing market would have collapsed by now so it's clear they know fuck all about anything.

    • Pat 2.2
      23 March 2021 at 10:03 pm

      "Treasury didn’t include any commentary on interest deductibility in the Assessment and said the Government should hold fire until the work is done.

      IR, in the same Assessment, simply said it opposed denying interest deductibility."

      "As for extending the bright-line test from five to 10 years, Treasury didn’t have time to form a view on this.

      Rather, it recommended the test be extended to 20 years."

      IR supported keeping rule at five years for new builds

      IR suggested continuing to apply a five-year rule to new builds to encourage the building of new houses.

      “Such properties are currently subject to the five-year bright-line test under the status quo and building consents are at an all-time high,” it said.

      The Government has adopted this recommendation.

      "Treasury wanted new builds to fall under the 20-year rule

      Treasury on the other hand advised against any exemptions being made for new builds.

      “An exemption comes with additional administrative and compliance costs, and over time reduces the coherence of the tax system,” it said. "

      https://www.interest.co.nz/property/109647/treasury-and-inland-revenue-advised-against-changing-interest-deductibility-rules

      Treasury is not the renters friend….and never has been.

      • mikesh 2.2.1
        23 March 2021 at 11:28 pm

        My respect for Grant Robertson increases. Not only has he done the right thing, but he has done it against departmental advice.

  3. David 3
    23 March 2021 at 7:41 pm

    In 6 months time we’ll look back on today’s announcement and the most memorable things will be:

    house prices still going up

    rents still going up and

    that Labour MPs don’t lie, they just speak too definitively.

    • KSaysHi 3.1
      23 March 2021 at 8:02 pm

      I think 3 months. Prepare for lift off!!

    • Treetop 3.2
      23 March 2021 at 9:58 pm

      I gave those in emergency housing in motels a thought today. The stress they are under is immense.

      Had there have been no Covid pandemic where would homeless people live?

      Renting has become unsustainable and it is going to take a decade to house those who cannot compete in the rental market.

    • Jester 3.3
      23 March 2021 at 10:51 pm

      Agree totally. They need to do more on the supply side. Taxing landlords is not going to help the renters. Of course landlords will increase the rent to cover the additional tax payable if they cannot deduct interest.

      Yes Robbo got caught out big time today.

  4. Adrian 4
    23 March 2021 at 10:03 pm

    Bullshit, you can’t buy paintings or classic cars and claim tax back on the interest so fuck them and I’m a landlord, only one house mind but the deductibles have always bothered me at the yearly tally up, just never thought it was fair but on the vineyard business loan it is different, we employ people and produce up to $200 k of duty paid straight to IRD and another 30 k of GST. And I get minimum wage, others we employ earn 5 +bucks an hour more than meand thanks to a cold summer we will make a loss this year.

  5. Muttonbird 5
    23 March 2021 at 10:42 pm

    I see Landlord Chiefs are losing their shit over the removal of interest deductions. This is the one they hate most so you know it's going to hurt the over-leveraged cowboys hard.

    Good job.

    Massive mortgage interest being written off used to mean amateur landlords paid zero tax on their 'business' along with zero tax on their gains.

    Not any more.

    https://www.nzherald.co.nz/business/landlord-chiefs-react-to-government-housing-package/DZUPDT2NIDWDEC5AX2RMZSIKHQ/

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