Ardern Government holds big poll lead amid massive ponzi reforms

Over the last two months, Jacinda Ardern’s New Zealand Labour Government has launched two major reforms to wean the nation off ponzi-led growth, namely:

  1. announcing major property tax reforms targeted at investors that:
    • extend the term of the Bright Line Test for taxing capital gains on investment property from five years to 10 years; and
    • fully remove the tax deductibility of mortgage interest payments on residential investment properties.
  2. announcing a “once-in-a generation” immigration reset for New Zealand that will shift away from high volume, low skilled migration to a smaller quantity of higher quality migrants.

If implemented properly, these reforms would alter the path of the New Zealand economy away from quantity-based ‘ponzi’ economics centred on population, housing and debt growth to growth focused more on productivity and tradeables.

For now, New Zealanders appear to have endorsed Jacinda Ardern’s new economic model, with opinion polls showing strong support in May, according to Roy Morgan.

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