The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Greg Millar
Published on

What property investors need to know

At this early stage, there will always be unknowns as ministers assess new legislation and review existing policies.

One key area to watch will be the tax treatment of property investors.

National plans to shorten the bright-line test for property investors to two years from 10 years, returning the law to its 2015 setting. from 1 July 2024. New builds will not be exempt from the two-year bright-line.

Interest deductibility for property investors will also be phased back in, reversing Labour’s ‘phased-out’ ban on interest deductions.

Interest deductibility will be 60% in 2023-24, 80% in 2024-25, and 100% in 2025-26, the coalition government confirmed in November.

National’s proposed restrictions on foreign persons acquiring residential properties for more than $2m in New Zealand and the proposed 15% ‘foreign buyer tax’ on such purchases have been quashed as part of the coalition government negotiations. Accordingly, any expected change in demand for residential property from this proposed change has gone.

Tax deductions for depreciation on commercial and industrial (non-residential) buildings will also be removed from the 2024-25 income year.

There will be plenty of other changes as the year progresses. Keep up to date by engaging with your industry body, reading the news and talking to us and your other advisers as policies develop.

Need property investment tax assistance? Contact Alliott NZ's team of Chartered Accountants and Business Advisors in Auckland on 09 520 9200.

Topics: deductions New Zealand policy property Property Investment residential tax planning