The New Zealand Government has taken direct aim at property investors, extending the term of the Bright Line Test for taxing capital gains on housing and fully removing the tax deductibility of mortgage interest payments on residential investment properties.
The measures are expected to come into effect this weekend.
Moreover, the Government will extend the rules on 1 October 2021 to all investment properties, regardless of when they were purchased. Although it will phase out mortgage interest deductibility over the following four years.
