Welcome to the first Implemented Investment Solutions (IIS) client newsletter. This will be a regular feature of the IIS calendar to keep clients up to date with what’s happening in the business, the underlying funds on the platform as well as relevant industry issues.
Of course, the big news this month centres on the recently-released Tax Working Group (TWG) final report, which recommends wide-sweeping changes to New Zealand’s taxation landscape with a range of implications for the fund industry if they are adopted.
The 99 core TWG recommendations feature a handful of headline-grabbing suggestions to impose a capital gains tax (CGT) on property (excluding the family home), farms and businesses.
Media panic aside, it is far too early in the political process to say with much certainty what the government will recommend when it responds to the TWG report in April. Furthermore, final approval of any TWG changes hinges on the support of NZ First leader, Winston Peters, who has historically opposed a CGT.
Peters has already said his party won’t support tax changes that result in an “explosion of the valuations and accounting professions”, which strongly suggests that the TWG recommendations will be watered down significantly over time.