Capital Gains Tax still the best option for Auckland

A proper Capital Gains Tax remains the most essential immediate option to fix the Auckland housing crisis, the Green Party said.

Reserve Bank data released today shows that in the last year, 43 percent of mortgage lending has been for property investment while just 12 percent has been for first home buyers.

“No solution to Auckland’s housing crisis is complete without a capital gains tax (exempting the family home),” Green Party finance spokesperson Julie Anne Genter said.

“While National’s bright line test has come under fire from the Law Society’s tax experts, and other parties are only focused on issues with foreign buyers, the Green Party still believes that a proper Capital Gains Tax is needed to close the tax loophole on property.

“The Government is out of touch with the reality that a generation of Aucklanders can’t afford houses because property speculators have driven them out of the market.

“A capital gains tax is fair, easy, and common overseas, and National’s half-measure bright line test just doesn’t go far enough to fix the problem.

“As well as a capital gains tax (exempting the family home), Auckland needs a state-led home building programme, high-quality medium density housing around public transport hubs, and restrictions on land sales to overseas investors,” said Ms Genter.