Government is extending the amount of time for which investment properties must be held before their owners can avoid capital gains tax - despite a warning that it could be bad news for renters.
Revenue Minister Stuart Nash confirmed the "bright-line" test would be extended from two years to five in legislation working through Parliament.
"The extension of the previous government's bright-line test will help dampen property speculation and make homes more affordable," Nash said.
He said reducing speculative demand would help to improve affordability for owner-occupiers.
Good. Because the way the rich get to enjoy tax-free capital gains on property speculation, while the rest of us pay taxes on everything we earn, is unjust and wrong. Its good to see it limited. At the same time, it clearly doesn't address long-term speculation, or financial assets (which the ultra-rich own almost all off). Labour has punted that problem till next election. Hopefully they'll actually show some spine and implement a proper capital gains tax if they win, rather than continuing to protect the untaxed rich.