Wellington Property Investors' Association

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09-03-2007

Political Regulatory Update August 2007

HOUSING REVIEWS

The Committee heard oral testimony in Auckland (23 August) and intends to convene public hearings in Christchurch.

Separately the Finance and Expenditure also met during the month and continued its inquiry into the future monetary policy framework.

TAX LEGISLATION

On 7 August the Government introduced new legislation to provide new tax rules for limited partnerships and update the tax rules on general partnerships. In general terms the Bill seeks to clarify and modernise the tax rules on partnerships.

The tax legislation is silent on the future of the loss attributing qualifying company (LAQC) rules, which appears to be for a new review in the future.

LAQC rules clearly remain a live issue for the Federation’s membership.

Elsewhere, there is likely to be legislation to be introduced shortly by Associate Justice Minister Clayton Cosgrove to amend the country’s trust law and in particular the rules around trading trusts and trustee obligations.

POLITICAL

National Party Policy

With around 14 months to go before the election, the National Party has announced a broad outline of its housing policy that will be of interest to the Federation. The Party:

  • does not favour (a return) to “market-related” rents
  • would improve housing affordability by embarking on a programme of personal tax cuts
  • change the building regulatory regime
  • keep interest rates lower
  • reform development rules to free up land, and
  • allow state house dwellers to buy their homes.

On taxation, the Party has previously stated that it does not favour the introduction of a Capital Gains Tax (CGT).

Tags: political reporty

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