National believes everyone should pay their fair share of tax, whether they are New Zealanders or from overseas. This year’s Budget includes extra measures to make sure that happens.
Budget 2015 invests a further $29 million in property tax compliance to ensure people buying and selling property for profit pay their fair share of tax. To make sure everyone pays tax as they should, all non-residents and New Zealanders buying and selling property for profit must provide an IRD number.
Non-residents will also have to provide the equivalent number from their home country, as well as have a bank account here. Except in certain circumstances – including when it’s the seller’s main home – if a residential property is sold within two years it will be taxed at the investors’ top marginal tax rate.
These steps to make property tax fairer sit alongside supply-side measures to improve housing affordability. These include opening up Crown-owned land for development, freeing up more land faster for residential development, boosting the construction sector, and supporting first home buyers.