Mortgage advisers against bright-line test extension
Finance Minister Grant Robertson has asked Treasury to review the effectiveness of the current five year test. Recent Inland Revenue figures suggest that a quarter of investors subject to the bright-line test did not pay the tax that applied.
With talk of the bright-line test being extended beyond five years, advisers fear the potential changes will harm the property market.
Glen McLeod of Edge Mortgages said: "Just like when it was adjusted to five years serious investors will take it in their stride. It is capital gains tax covered up," he added.
McLeod said an extension of the test would be a broken election promise, and said the move would not solve NZ's chronic undersupply problem.
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