Who will be affected by the proposed CGT?
Dr Cullen and the Government would have you think that a CGT won’t affect 90% or so of the population – only a few rich pricks. But if you read the actual details of the proposal, you’ll be stunned at how many people will be affected. Here’s a short list I have compiled on a short skim through.
- Anyone who owns shares
- Any business owner
- All farmers
- Anyone who owns a bach
- Anyone who owns a holiday home
- Anyone who owns a rental property
- Anyone who has intellectual property
- Anyone who owns their own home and has sex (okay enters into a relationship) with another home owner
- Anyone who owns a home who moves overseas for a while
- Anyone who works in a different city to where they live and owns a apartment for them to live in during the week, as well as their family home
- When you purchase a new family home, but are unable to sell your old one within 12 months
- When you move into a resthome, but are unable to sell your old home within 12 months
- When you buy a section to build a new home on, and it isn’t completed within 12 months
- When you own a lifestyle block larger than 0.45 hectares
- When you claim expenses for a home office
- When you earn some extra money by listing a room on AirBnB
- If you have flatmates or a boarder (even your own adult children) and claim expenses.
- If you have parents who own any taxable assets who will die at some stage (CGT doesn’t apply on death but will apply if you ever dispose of the inherited taxable asset)
- Anyone who has a taxable asset who migrates overseas (pays CGT immediately even if they keep their assets)
- Anyone who has a KiwiSaver account (you don’t pay CGT directly but your KiwiSaver account is impacted by it)
So nothing at all to worry about if you’re not a rich prick – yeah right.