CGT will hit super funds & ACC

Labour’s proposed capital gains tax will exempt payouts from superannuation funds but it will apply to property which many of the funds invest in.

For the first time in decades, New Zealanders are acting on the message to save. But if Labour’s policy is enacted, some of the returns from those investments will be eroded by CGT.

The New Zealand Superannuation Fund and ACC have both invested in farmland and other property.

The negative impact Labour’s CGT will have on both of them will be among the boring details the party doesn’t want to trouble us with.

2 Responses to CGT will hit super funds & ACC

  1. It is my understanding that such funds are already taxed as traders and the main argument was that their tax rate was a lot higher than the rate applicable to their individual members. The proposed 15% would be nearer the mark for most of us but would seem academic; they’ll still pay 33% or more.
    James mcGehan

    Like

  2. homepaddock says:

    I don’t think they’d be taxed as traders for investment in farmland or other property now.

    Like

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