Accountants and tax agents say confusion over tax rule changes is giving property investors cold feet and could result in high levels of non-compliance, says Interest. Investors are reportedly changing their residential property investment behaviours, due to ongoing changes to the bright-line test and a new rule stopping them from deducting interest as an expense when paying tax. “To be fair, the Government’s aim was to cool down the overheated housing market, which is causing a range of economic and social issues, but we’re not sure this is the best way to do it,” says CA ANZ NZ Tax Leader John Cuthbertson.