Nearly 24,000 Bay of Plenty properties could be hit by proposed capital gains tax

National Party leader Simon Bridges. Photo / Alan Gibson

More than 20,000 Bay of Plenty lifestyle blocks could be affected by a proposed capital gains tax.

Figures from Land Information New Zealand released to the National Party show Labour's proposed capital gains tax (CGT) would hit at least 23,981 properties in the Bay.

A breakdown of the regional figures to district and city council levels revealed the Western Bay of Plenty had the most properties over 4500sq m at 11,148.

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There were 4719 counted in Rotorua and 2062 in Tauranga.

However, the figures were less accurate than the regional number as properties that sat over the boundaries of two districts could be counted twice.

National Party leader, and Tauranga MP, Simon Bridges said the Government claimed a capital gains tax was about fairness, "but we don't think it's that fair in the Bay of Plenty".

Bridges said hardworking small business owners such as plumbers, hairdressers, and farmers would be hit with a tax when they go to sell or retire.

Hayden Duncan, chief executive of Tremains Group, which includes Colliers International and Sotheby's, said the proposed capital gains tax was only a recommendation and was unlikely to happen.

However, Duncan said the bigger concern was the taxing of capital gains had the potential to affect many more small-to-medium businesses in New Zealand than property owners.

"I don't think any New Zealanders want to see a tax on their family homes. In all reality it probably won't happen," he said.

"The property side is limited in its impact. People should be more concerned about business confidence and jobs."

OneRoof editor Owen Vaughan said there was uncertainty around what the Government's plans were in terms of the capital gains tax proposal.

"Until there is a bit more clarity, there is going to be a certain amount of nervousness in the market."

In a statement, Finance Minister Grant Robertson said: "The independent Tax Working Group's proposal was that CGT would be paid only on the sale of a property, and that all gains made up to the point the tax comes in would be protected – the proposal was that only gains made after 1 April 2021 would be subject to a CGT.

Additional reporting - NZME

CAPITAL GAINS TAX - PROPERTIES AFFECTED
Bay of Plenty: 23,981
Western Bay of Plenty: 11,148
Rotorua: 4719
Tauranga: 2062
Whakatane: 4992
Ōpōtiki: 2367
Kawerau: 79