On 4 August 2006 Building Issues Minister Clayton Cosgrove released of a summary of submissions to the review of the Unit Titles Act 1972. The summary is available on the Department of Building and Housing website at http://www.dbh.govt.nz/
Nearly 150 submissions, including one filed by the Federation, were made in response to the Options for Change discussion document released in May 2006.
Options for Change put forward a range of proposals, including redefining the responsibilities of bodies corporate and unit owners, common property and unit entitlement.
The submissions will assist the Department of Building and Housing in developing proposals for legislative change and the public will be able to make submissions on the resulting draft Bill expected later this year.
During the month the Social Services Select Committee continued to hear oral testimony on the Residential Tenancies (Damage Insurance) Amendment Bill.
Following Parliamentary probing, opposition political parties have made much political capital and generated media coverage on the huge extent of damage done to state houses by tenants – estimated to be $21milion per annum. In turn, this has been leveraged to highlight that intentional damage is also prevalent in private sector housing and that the Bill could actually prompt a surge in damage. Also under Parliamentary questioning (2 August) the sponsor of the Bill admitted that there was no consultation undertaken with relevant stakeholders including the insurance, real estate or landlord organisations prior to the bill’s introduction. The tenor of the public debate thus far could help galvanise sufficient political support to significantly modify or dump the Bill.
All National, ACT and United Future MPs on the committee have been briefed directly on Federation perspectives on the Bill. And as the Bill is not a “supply and confidence” matter, the swing vote of the Government’s coalition party, United Future – who have indicated that they are opposed to the bill in its current form, would be enough to defeat it.
During the month the Green Party proposed that a Capital Gains Tax on property be introduced. The rationale being that a CGT would stop the wealthy from buying up the housing stock.
Of interest to the Federation was the strong Labour Government and the National Party statements that both ruled out such a tax initiative under their respective regimes.
Of further interest, the Housing Minister the Hon Chris Carter said he had no plans for a capital gains tax, he had seen no work on one and he had not asked for any work to be done on it. He also commented “there were also some disadvantages to such a tax because it discouraged investment in property when part of that investment provided more houses”.
Elsewhere, the Government has proposed new investment tax rules including a CGT on overseas share funds and similar investment vehicles.
Written submissions closed this month (11 August) on the IRD discussion document on the reform of the tax status of partnerships. See: http://www.taxpolicy.ird.govt.nz/
The discussion paper proposes codifying the tax rules on general partnerships and introducing new rules on limited partnerships. The proposed changes are intended to complement the planned introduction of modern regulatory rules for limited partnerships.
Buried in the 59 page report and consisting only of three paragraphs are signals that the government recognises that LAQC structures could be used to circumvent the policy intent behind the proposed loss limitation rules. This issue is likely to be considered further in a future review of the LAQC rules. In other words, it is likely that LAQCs could soon disappear especially if they involve operating losses on investment properties.
The Ministry of Social Development (MSD) is currently carrying out a review of the Accommodation Supplement.
Written submissions have been invited by MSD and the closing date for feedback is 30 September 2006.
Need help or
support?
