My opinion on the new tax changes
3556POSTED:
GRA Blogs
Articles by Matthew Gilligan
I'm seething about these tax changes. And it’s not just the fact that Labour lied to us; it’s the whole bigger picture and the implications for ordinary New Zealanders.
This Government is attacking middle New Zealand with all these housing initiatives and tax reforms – it’s mums and dads being hit, not property oligarchs. According to February 2021 stats from MBIE, 80% of landlords in New Zealand own just one rental property. And 96% own four or less.
In other words, six out of seven properties are provided by private landlords and NGOs. This begs the question: who is going to provide the houses if landlords give up?
The 96% of the landlords that own four or less properties are hardly rich listers, but they are being treated like economic terrorists and scapegoated for successive governments not solving supply.
Investors are being labelled ‘speculators’, ‘tax cheats’, and are now accused of running potential rent cartels, to name a few recent characterisations in the press and from Labour. Property investors are suffering the most sustained attack by this Government: loss ring-fencing, the cost of Healthy Homes, ridiculous tenancy rules, 60% LVRs, and now interest non-deduction rules and 10-year bright-line rules. Soon to be added, if we read between the lines, are rent controls and removal of interest-only loans. The latter is very serious.
And when investors start to exit the market, which they will, who will provide the housing? The state? That’s called socialism. That's what that is - the government seeking to centralise and control, and stifle private initiative, stop a middle class trying too hard, and especially stop any one group getting too far ahead. The reward for trying hard, being smart, sacrifice and investment is wealth. This Government calls it a wealth gap, and sees this as a problem, not a means to greater productivity and self-determination. It's socialism, and envy politics is part and parcel. Turn the poor against the rich, using labels like ‘speculator’ and ‘tax loophole exploiter’.
The solution is to vote against these socialist (but well-meaning) zealots; vote against these ideological academics, that went straight from school to university to politics, and apart from one of them working in a fish and chip shop, none of them have run large businesses and built productive business units in their lives. Yet they are running our country.
Look at how they run the health system for example, and the gaping holes and problems there.
They just want to take from the rich and give to the poor, seek out victims to virtue signal to, hug and apologise to the world. But they don't know how to consult and facilitate the very clever and efficient private sectors. They are so arrogant, they think they know better; they shoot from the hip with poorly thought-through policy like these tax changes, rather than from informed discussion in select committees and taking advice through community and expert consultation.
I liked Jacinda, but Labour needs to go. They are doing damage.
Vote for your local National MP, give Act your party vote. David Seymour is the only politician that has publicly said he wants to reverse these interest non-deduction tax changes and irrational tenancy rules. (Watch my interview with David Seymour here.) He is a libertarian; he wants to reverse the bullshit and let us get on with providing for our families and self-determine. We understand National are planning to reverse these rules as well (as per Andrew Bayly MP’s comments on Facebook), but nothing has been announced in mainstream media as yet.
Make sure you educate your peers and mates on the utopian problems that come out of Marxism and this socialist government. I keep bumping into the younger generation that don't know what Marxism is and the whole argument surrounding the alienation of capital from labour, and what our Labour comrades are up to. Make sure you explain it; it's hard to understand the different perspectives if you haven't had them explained to you.
For commentary, videos, and articles on these tax changes, visit our Tax Changes Resources webpage. There you’ll also find a petition you can sign if you disagree with these new rules.
Matthew Gilligan
Director
© Gilligan Rowe & Associates LP
Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.
Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.
Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
Comments
Testimonials
We moved our business accounting to GRA twelve months ago and have never looked back. Matthew Gilligan and his team have consistently provided us with honest straight forward advice and have proved themselves to be honorable, trustworthy and efficient in all matters to date. The point of difference for us is that GRA do not charge their clients for every question asked (like most other accountants) which allows for better communication and understanding of how to run a successful company. GRA have impeccable time management systems in place and their customer service is outstanding. I recommend them to any other business that wants good solid advice with the aim of business success, asset protection and opportunities for sound investments. - A Ellis – EC Flooring Contractors Limited
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.
Learn More
Free Resources, Tools & Downloads
