The Government were unable to reach a consensus on introducing a capital gains tax and Prime Minister Jacinda Adern has ruled it out under her leadership, despite the Labour party having campaigned on it for some time.
“The Tax Working Group gave the Government, and the country, an opportunity to look at the fairness of our tax system and debate options for change,” Jacinda Ardern said.
“All parties in the Government entered into this debate with different perspectives and, after significant discussion, we have ultimately been unable to find a consensus. As a result, we will not be introducing a capital gains tax."
"While I have believed in a CGT, it’s clear many New Zealanders do not. That is why I am also ruling out a capital gains tax under my leadership in the future."
The Coalition Government has responded to the independent Tax Working Group report, which made recommendations to improve the fairness, balance and structure of the New Zealand tax system.
“The final report covered all aspects of the tax system, and a number of the recommendations will now be considered for inclusion in the Government’s Tax Policy Work Programme,” Grant Robertson said.
“That includes exploring options for targeting land speculation and land banking."
The Government plans to release a new tax policy work programme half way through the year.
What does this mean for borrowers? Probably not a lot, it's business as usual but investors may rest a little easy with one less thing to worry about.