Government’s plans to impose tax on rental properties are expected to hit retired landlords the most.
Under the new tax proposals, landlords will have to bear the burden of land tax plus will lose tax write-offs to a great extent.
Sue Tearney, the president of Auckland Property Investors Association, argued that investors who had purchased property with a view to secure financial security lose more than any one else.
She added that the proposed changes would affect the retired people unconditionally.
Revenue Minister Peter Dunne said, “Such abuse potentially places an unfair burden on the 60 per cent of families who do not receive Working for Families tax credits.”
Estimates suggest that the proposed changes would affect as many as 1.4 million tenants.