POLITICAL & REGULATORY REPORT for October 2011
POLITICAL & REGULATORY REPORT for October 2011
POLITICAL & REGULATORY REPORT for October 2011
Credit Reporting Privacy Code – Updates
During the month the Privacy Commission announced technical changes to the Credit Reporting Privacy Code 2004 with amendment number four, coming into effect on 1 October and amendment number five is due to commence on 1 April 2012.
On this occasion, the code changes do not directly affect current landlord or their agents’ rights to run credit checks on prospective tenants.
The Code defines a landlord as “a person who has offered to grant a tenancy of premises to that individual, or who has entered into negotiations to grant a tenancy to that individual”.
GIFT DUTY - Abolished
Gift duty was abolished on 1 October 2011. For investors this may make it easier to transfer property assets into a trust.
Inquiry into Boarding houses - Report
On 30 September the Social Service Select Committee released its interim report into boarding houses.
The inquiry found a number of issues worthy of pursuing further, such as: minimum building and health and safety standards; monitoring and enforcement of compliance by central and local governments; and information and education for landlords and tenants.
The inquiry noted that with the dissolution of the current Parliament for the general election there was inadequate time to consider and to make appropriate recommendations on the matters. Accordingly, it encouraged the Social Services Committee of the next Parliament to reinstate the inquiry as an item of business, and to give the subject further consideration.
ELECTION CAMPAIGNING – Parliament in recess
Parliament had its last sitting day on 6 October and was officially dissolved on 20 October.
All political parties are now in campaign mode ahead of the general election to be held on 26 November.
During the Parliamentary period 2008-2011 it is worth recalling that under the National-led administration it has implemented a number of regulations and policies directly affecting residential property investors, including amongst other things:
- From 1 April 2011 removed depreciation entitlements from an array of building fixtures and fittings
- Tightened the rules around LAQCs
- Enacted the Residential Tenancies Act 2010 which re-balanced landlord/tenant responsibilities
- Enacted the Unit Tiles Act 2010 which updated the 1976 legislation
- Instructed the IRD to get tougher on speculators, beach and holiday home landlords
- Abolished gift duty
ELECTION MANIFESTOES
The following is a synopsis of the various political parties declared policies of relevance to the Federation.
Capital Gains Tax
- NATIONAL: No CGT under a National-led administration
- LABOUR: A 15% CGT will be implemented (family home exempted)
- GREENS: Would support the introduction of a comprehensive capital gains tax (family home exempted)
- MAORI: Not stated
- MANA: Would introduce a comprehensive capital gains tax on all but the family home and Maori land
Other taxes
- NATIONAL: NO new taxes proposed
- LABOUR: Would reconsider reinstatement of gift duty
- GREENS: Tighten the rules around Loss Attributing Qualifying Companies (LAQCs) and equivalent tax deductions
- MAORI: Implement Financial Transactions Tax
- MANA: Implement Financial Transactions Tax
Tenancies legislation
- NATIONAL: No planned amendments
- LABOUR: Revisit tenant insurance liability. Regulate property managers.
- GREENS: Not stated
- MAORI: Not stated
- MANA: Not stated
Other issues
- NATIONAL: Not stated
- LABOUR: Tighter regulation and a mandatory register for boarding houses, hold a ministerial inquiry into homelessness
- GREENS: Would mandate all rental properties to have minimum standards for warmth and insulation. Would extend the government assisted home insulation scheme to 400,000 homes (from 200,000)
- MAORI: Review the adequacy of the accommodation supplement
- MANA: Would introduce a ‘warrant of fitness’ for all rental housing
- UNITED FUTURE: Extend the existing scheme in which Work and Income NZ deducts Housing NZ rentals directly from benefits to include private sector rentals. Require all dwellings sold to be assessed for energy efficiency (e.g. insulation, double glazing, heating methods, use of solar energy) and given a standardised energy efficiency rating
ISSUES UNDER WATCH
· New Zealand Productivity Commission Inquiry into Housing Affordability – Submissions closed 3 August 2011. Awaiting draft – Nov/Dec 2011
- Review of the law of trusts (especially family trusts) – Written submissions to the 4th issues paper closed 31 August 2011
- Trustee Amendment Bill (clarifies functions, duties & rules for trustees) - Awaiting 2nd reading
· Energy Efficiency Conservation (Warm Healthy Rentals) Amendment Bill (to require all rental properties to have minimum standards for warmth and insulation by 2018) - Awaiting a ballot selection for parliamentary debate
· Amendment to the Land Transfer Act 1952 – modernisation of the law to reflect the current use of electronic conveyancing and other technical improvements be made - pending
Published: November 2011
