Originally Posted by
SBQ
Here we go again (and i'm being sarcastic) . The NZ voice speaking out that what other large nations are doing is not so good, and NZ can go and try and do it better. So their CGT (or tax system) isn't so "fair" and NZ is out to try and reinvent the wheel (among many other things). After all, "We have a population of 4.5M people, we're SURELY to do better than the 350M people in N. America or the 23M in Australia" or perhaps all of Europe?
Perhaps question why so many are able to invest in NZ real estate and ABLE to pay not a single dime of tax on the gain of the asset upon time of sale??? When I first came to NZ, I thought it was VERY "blunt" that such an asset class was left untouched of any taxation. The excuse I was told then was NZ is a small country and deserves some perks.
Trading up the house home ownership? You mean it's a bad idea for people to value and treat their primary residence as a prized asset (for where they will make improvements), than an asset of financial gain? It's goes to show when Kiwis want a better home, they don't improve the house they live in, instead they sell the house and buy a NEWER house that has the improvements. It's a behaviour no different to changing cars.
Stamp duty is essentially no different to a GST on the sale of the house. But why do most houses in NZ don't have GST on them? Other countries have some form of 'sales tax' when it's changed hands. In Canada many provinces have a tax on the 2nd hand cars that get sold (PST). Are you saying that NZ already has enough taxes? I say NZ has been too generous to the top 10%.
Again, am I led to believe that the average Australia, Canadian, or American is smarter, more understanding about taxation and finance, then the typical Kiwi? My experience from speaking to various NZ financial advisors is, they fail to give me a straight answer regarding taxation & finance. When I grew up, CFA exams require all financial advisors to be fully updated with taxation laws. In fact, in almost every case all the finance advisors (N. America) have to give advice from the point of taxation. But in NZ, i'm compelled to believe they can not give advice from a tax point of view and say "you must also seek a tax accountant specialist". How complicated is that? As complicated as building a multistory house because all I see in NZ new sub-division builds is the same single story houses (can blame the NZ RMA for that).