Tax changes ‘essential' to remove investment property bias - SWG
In its report to Government on how to boost New Zealand's savings, the SWG also said steps need to be taken to prevent a repeat of the unsustainable boom of the last decade, which saw a large increase in the country's debt, "much of which went into housing and a 'bubble' in house prices."
Resolving tax distortions is one of the key recommendations of the report.
"The SWG estimates that the tax system bias in favour of housing caused about half the increase in house prices, with serious implications for affordability," the SWG said.
"Moreover, the boom boosted investment in housing rather than investment in more productive assets that would have lifted productivity and potentially lifted exports."
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
