The Labour Party plans to consider a capital gains tax in New Zealand, which will be a part of the Tax Working Group discussions.
Taranaki-based rural accountant Dean Pratt of Harris Taylor, doesn’t believe it’s all bad. Mr Pratt joins Rural Exchange to discuss the tax and how it would work in NZ.
A capital gains tax was introduced in Australia over three decades ago and house prices have roared out of control since.
“The reality is the simpler you make it to enforce, with less carveouts, the more effective it’s gonna be,” he says.
If the Government chooses a modest 10% capital gains tax, Mr Pratt predicts that people will likely be able to live with that.
“If they settle at the income tax rate, who is going to want to pay 33 cents on the dollar?” he asks.