Confusion over tax rule changes gives property investors cold feet

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.