Greens urge capital gains tax in plan to address housing crisis

PHOTO: Greens Finance spokesperson Julie Anne Genter says its time the Labour government removed tax incentives for investors to buy property. Photo: RNZ /Dom Thomas

The Greens want to make it harder for property investors to get a mortgage, and to make them pay a capital gains tax whenever they sell a house.

The party released a four-point plan that it says will help stop an accelerating housing crisis, which continues to lock ordinary New Zealanders out of the market.

It comes as Finance Minister Grant Robertson is expected to announce policies to address housing supply side issues next week.

Greens Finance spokesperson Julie Anne Genter said her party’s plan was calling for bold, transformative measures, including removing tax incentives for investors by ditching the five-year cap for the bright line test.

“Anyone selling a residential investment property that is not their primary home should have to pay tax on profits.

“Any cap extension, to 10 or 15 years for example, just kicks the can down the road a few years, while property investors will hold on to their properties until the day after the bright line test is over,” she said.