The Government will pass a law to exempt flood and cyclone-damaged homes from the bright-line test, which imposes a capital gains tax on investment properties. The bright-line rule was intended to act as a capital gains tax on property investors and it excludes the family home. Stealth-y taxesNicola Willis, the National Party’s finance spokesperson, said the extended bright-line test was a “capital gains tax by stealth”. “I absolutely refute the mischaracterization by that member who says that there is a capital gains tax by stealth. “When John Key’s Government introduced the bright-line test in 2015, this was the start of a slippery slope,” he said.

Source: Stuff August 23, 2023 10:33 UTC