National Party proposals “will please financial advice industry”

Financial advisers are likely to be pleased with the latest comments by the National Party leader, Christopher Luxon, according to their chief lobbyist.

Monday, March 7th 2022, 9:22AM

by Eric Frykberg

Financial Advice New Zealand chief executive, and former National MP, Katrina Shanks, says freeing people up to make their own decisions about spending their own money is a good thing.

Luxon's comments came in a State of the Nation address in Auckland on Sunday.

Luxon accused the Labour administration of believing the government knows more about people's private lives than individuals do themselves.

And he pledged to repeal a range of new taxes, if elected.

He would once again allow property investors to deduct the interest on their loans against their tax liabilities.

He would also bring the Bright Line test back from 10 years to two.

Tax threshholds would also rise.

Shanks thinks moves like these would be positive.

“Anything that gives people the ability to save more and invest more is a good thing,” she said.

“Obviously you would not want to see a reduction in core services, but it is a good thing when people are able to make choices with their own finances.

“Increasing their savings and investment for their retirement is a positive thing.”

Luxon's speech made no mention of the much criticised Credit Contracts and Consumer Finance Act (CCCFA).

But Shanks thought this omission was not important, since the CCCFA was a “nuts and bolts” issue not suited to a State of the Nation speech.

The National Party's Revenue and Commerce spokesperson, Andrew Bayly, says opposition to the CCCFA rules is alive and well within the party.

He says the rules are very damaging and will only get worse with time.

“They should have been gone yesterday,” Bayley said.

And he was sceptical of the review currently being conducted into the CCCFA, saying it was being carried out by MBIE officials who bore responsibility for a lot of the problems.

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