Articles by Matthew Gilligan
Today (20 December 2023) the coalition government announced that the bright-line test will be reduced to two years from 1 July 2024.
This is what Nicola Willis had to say:
"Today I am announcing our immediate decision to bring the brightline test for residential property back to two years, effective from 1 July 2024. Removing this effective capital gains tax means that properties sold after 1 July 2024 will only be subject to the rule if owned for less than two years."
At GRA we are very pleased, not only with the reduction of bright-line timeframe, but also that the government have followed through and done what they said they would.
A two-year timeframe is fairer for genuine investors, while still capturing those who are really traders but who would have liked to pose as ‘long-term investors’ in order to avoid paying tax on the capital gains they make.
We expect the definition of “sale” will likely be a binding contract, but we need to wait for the detail to be confirmed. We will keep you posted as the details come to light.
Hi Matthew, Just like to thank you for a Great day on Sunday at at the Property Leaders event....certainly worth the trip up from Wellington. We are always impressed with GRA's ability to help their clients.. a rarity among many businesses. Kindest regards, Brian and Janet Adams - Brian and Janet Adams, May 2018
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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