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Investors and Inland revenue clash over proposed legislation

Author
Newstalk ZB,
Section
Audio,
Publish Date
Wednesday, 12 December 2018, 10:29a.m.
Photo / Getty Images

There are growing warnings about possible rent rises if new legislation goes through.

A bill that introduces ring-fencing of tax losses for rental properties is likely to get it's first reading today.

Currently, investors can use losses on rental property to reduce the tax they pay on their other income, but the government says that's unfair, especially to first home buyers.

Inland Revenue figures reveal 40 percent of landlords make rental losses with the average tax benefit being $2000 a year.

Auckland property investor and developer David Whitburn told Mike Hosking that it is a small minority of people who are not playing by the rules.

"The vast majority of property investors are making profits, and are paying a sizeable amount of tax."

When asked if he believed the Government was doing enough to implement the right policies to help the situation, Whitburn said it was a complex issue to solve, and thinks many people will be opting out

"House prices have gone up a significant amount over the last 18 months, and I think the government is making some progress with the Kiwibuild progress.

A lot members aren't happy about law and regulations increasing the uncertainty in the market. As as a result, some will be selling their investments."

LISTEN ABOVE AS DAVID WHITBURN SPEAKS TO MIKE HOSKING

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