Labour’s admission that their changes to the brightline test has captured family homes is further proof that New Zealanders cannot trust Labour on tax, National’s Finance spokesperson Nicola Willis says.

“The Government has been forced to ram through a change to legislation to ensure that cyclone-affected homeowners aren’t captured by their changes to the brightline test.

“While this will be welcome relief for cyclone-affected homeowners, it leaves many other New Zealanders in the lurch as they may still be forced to pay a capital gains tax if they sell their family home.

“The Government’s extension of the brightline test to 10 years is so broad that it captures anyone who moves out of their home for a period of 12 months - whether for work, family or other unavoidable reasons. These families will be forced to pay a capital gains tax if they're selling their home within ten years of purchasing it.

“National specifically warned the Government that partners in the military or on secondment could be captured by the Government’s property tax changes – but Labour went for the unprincipled tax grab anyway, changing the definition of ‘main home’ in legislation to capture Kiwis with their capital gains tax by stealth.

“This is a betrayal of everyone who believed Labour when they said they would not introduce a capital gains tax on the family home, having been warned by National that their change in the brightline settings would do exactly that.

“New Zealanders just cannot trust Labour on tax.

“National will reverse Labour's stealth capital gains tax by taking the brightline test back to two years and returning to the previous version of the rule, ensuring Kiwis’ family homes are protected from the tax.”

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