Taxes

The following is a selection of articles mainly from January 2005 to the present. To explore this topic in more depth and access earlier columns, please use the search box.

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Articles

NZ Herald article May 22 2006: Readers sound off about proposed international tax changes

Readers of the Money column in the Weekend Herald have sent Mary Holm an unprecedented number of letters commenting on the government's proposals to change tax on investments. The following are edited excerpts:

Are New Zealanders bad savers? It's all in the way you look at life

Key Points

· Some surveys on retirement saving are unduly pessimistic.

· Saving for retirement should be defined much more broadly than putting money into financial assets.

· Other ways of saving, such as repaying debt or getting an education, are wiser moves for some people than financial investing.

· Research shows that most New Zealanders are saving enough to maintain their pre-retirement standard of living after they retire.

· When we define retirement saving more broadly,...

NZ Herald August 9 2008

Q&As: Reader wants a list showing how KiwiSaver funds have performed, but I won't oblige.
Why farmers mingle their work and personal expenses.
More reasons why taxing families as one unit might harm more than it helps.

NZ Herald August 2 2008

Q&As: 3 Q&As on whether New Zealand should raise GST and reduce income tax - including how some farmers cheat on their taxes, and whether we want to encourage people to work longer hours.
Why KiwiSaver providers are highly unlikely to suffer the same fate as many finance companies.

NZ Herald July 26 2008

Q&As: Would it be better to raise GST and lower income tax?
Possible raising of retirement age not a good reason to stay out of KiwiSaver.

NZ Herald July 5 2008

Q&As: Average Joe Bloggs, sick of the rich and poor ripping off the system, seeks tax breaks.
"Fair Go" television show overlooked three important points when criticising KiwiSaver for children.

NZ Herald June 14 2008

Q&As: KiwiSaver naysayer is the one who is "light on fact".
Self-employed KiwiSaver must contribute 4 per cent of pay when he takes a job - but he won't starve.
Inland Revenue "clarifies and expands" its position on mortgage interest deductions after a family home is rented out.

NZ Herald May 31 2008

Q&As: 2 Q&As on how the self-employed can make the most of KiwiSaver.
More to come on tax deductibility of mortgage interest when you rent out your former home.

NZ Herald May 24 2008

Q&As: Far from being "devalued", bank term deposits are a good deal these days.
Don't bail out of funds that include shares, despite forecasts of lower long-term returns.
No, last week's comment on the non-deductibility of mortgage interest wasn't wrong - 2 Q&As.
Another option for last week's correspondent is house-sitting.

NZ Herald May 17 2008

Q&As: 61-year-old struggling to pay off mortgage considers renting out her house and becoming a tenant elsewhere.
Self-employed man wants to get back "over payment" into KiwiSaver

NZ Herald April 5 2008

Q&As: The best KiwiSaver fund for a 23-year-old depends on her house-buying plans.
Angry Blue Chip investor muddles my opinion with a reader's opinion.
A reader suggests why online tax payments sometimes go wrong.

NZ Herald March 29 2008

Q&As: Do Blue Chip, finance company and other investment victims deserve what's happened?
2 Q&As on "nicer" ways to invest than rental property.
Electronic tax payment problems not common.

NZ Herald March 22 2008

Q&As: A landlord can't understand why others dislike landlords.
4 Q&As on tax and rental properties, including comments on the role of politicians.

NZ Herald March 15 2008

March 15 Q&As: Two readers sound off about ring fencing rental property tax losses, and a third puts it all in historical perspective.
Another reader worries about the difficulties of making tax payments online.

NZ Herald March 8 2008

Q&As: A landlord's threats are perhaps a little hasty - but he has a point.
A KiwiSaver misunderstands the ups and downs of the market.
Are property shares a good option for young man saving to buy his first home?

NZ Herald November 24 2007

Q&As: Eggs in baskets don't really apply to term deposits, but there's another way to diversify.
Taxing options if you take flatmates in to help you pay the mortgage.
2 Q&As on how to make the most of KiwiSaver if you are in and out of the work force.

Syndicated column May 29 2007: Back to the creepy stuff

Well, he did it. Despite my impassioned plea in this column in February last year, Finance Minister Michael Cullen took away our chewing gum tax cut in the recent Budget. And we're much bigger losers than most people realise.

Syndicated column May 15 2007: Readers respond on KiwiSaver tax breaks

Three readers were unhappy with my last column, in which I said the KiwiSaver tax breaks expected in the upcoming Budget will benefit only some people, at the expense of New Zealand as a whole.

Syndicated column April 28 2007: Think again about those KiwiSaver tax breaks

Many readers were no doubt pleased to hear of Winston Peters' recent hints that the May 17 Budget will include tax breaks in the KiwiSaver retirement savings scheme. But only some will benefit - and it will be at the expense of others, and the country as a whole.

NZ Herald April 14 2007

Q&As: A tax on house sales, to subsidise first home owners, is a lovely idea that wouldn't work.
Renting and saving elsewhere can leave you better off than home ownership.
Semi-retired couple who sold their home and rent are probably doing fine.

NZ Herald April 7 2007

Q&As: A year-old letter shows the danger in trying to predict what the Kiwi dollar will do
"Plodders" wonder how to match the investments of their landlord friends
Traders in shares beyond Australasia no longer pay the old tax on capital gains
How about taxing rental property the same way as international shares?

Syndicated column April 3 2007: New tax rules not so bad

As the new tax regime on shares in countries beyond Australasia takes effect, many taxpayers seem to think it's tougher than it really is.

NZ Herald March 31 2007

Q&As: Have you got what it takes to borrow to invest in a share fund?
How frequent traders in international shares will be taxed under the new rules.
How Inland Revenue might catch property traders.

NZ Herald March 24 2007

Q&As: Should we blame the banks for soaring house prices?
2 Q&As on the new fair dividend rate tax on non-Australasian shares - the threshold, and trying to get around the rules
2Q&As on home equity release - lifetime interest rates and break fees if you change your mind

Syndicated column March 20 2007: KiwiSaver enticing enough already

KiwiSaver, the new retirement savings scheme starting July 1, is coming in for criticism that is doesn't include more tax incentives. But I'm glad of that.

NZ Herald March 17 2007

Q&As: Landlords, beware! Changes being considered in rental property taxation.
Reader feels unfairly punished by Reserve Bank's interest rate hike.
The word "secured" in a debenture ad is hardly a warning sign. The company is just following the law.

NZ Herald March 10 2007

Q&As: Many elderly, and others, could benefit from rates postponement schemes.
Why floating interest rates might be better - for home equity release schemes and ordinary mortgages.
A not-so-dumb question about the $50,000 exemption for international tax changes, and a new source of info on the changes.

NZ Herald February 24 2007

Seeking your questions about KiwiSaver
Q&As: Woman in mid 50s, who is renting, explores options for buying a home
2 Q&As about the $50,000 threshold in the new regime on taxation of international shares

NZ Herald February 17 2007

Q&As: Is the Kiwi dollar to blame for poor overseas investment performance?
How foreign dividends will be dealt with under the new tax rules.
Where to go for historical foreign exchange data - for tax purposes.
A lionish company bites back.

NZ Herald February 10 2007

Q&As: The warning signs in investment ads
Should we adjust investment returns to allow for inflation?
How best to assess long-term returns on shares and property
How to tell if an Australian company qualifies for the tax exemption

NZ Herald February 3 2007

Q&As: Unlucky reader challenges the value of index funds.
Questions galore on the $50,000 threshold in the new international share tax regime.
How to get historical foreign exchange data for calculating that threshold.

NZ Herald January 13 2007

Q&As: Options for a newly retired couple with $200,000 and no home include part-time work, buying a home with a flat attached, an interest-only mortgage and equity release.
Two Q&As on which investments are affected by the new tax law on international shares, and how it will work for investors.

NZ Herald December 16 2006

Q&As: Should man, 64, get student loan for the income, given that he probably won't ever repay it?
Passing shares down the generations has good and bad points.
Why did GPG get an exemption from the new international share tax rules?
Woman makes great progress in one short year.
New charity aims to help children help themselves.

NZ Herald November 18 2006

Q&As: Should we get bigger tax deductions for donations to charity? Also - give Christmas gifts to those who really need them.
Readers disagree over the price of a 1950s pie.
Buying shares company by company, over the years, not the best strategy.
Is the new proposed tax on international shares fair?

NZ Herald November 11 2006

Q&As: What's happened to the price of pies over the years?
Would it be good for NZ if Inland Revenue was tougher on rental property capital gains?
When is "income" really "profit"?
Reluctant shareholders worry about their lack of power - How best to hold shares.

NZ Herald November 4 2006

Q&As: Two on why many rental property investors should pay tax on their gains when they sell. It's the law!
How to teach teens about budgeting.
Allowing for tax when calculating returns on term deposits.

NZ Herald October 28 2006

Q&As: A reader finds a flaw in my "avoid the rear-view mirror" argument. Or does he?

Would NZ's tax revenue actually increase if we all invested offshore?
Inland Revenue says it can't fix everything at once.

NZ Herald October 21 2006

Q&As: Is there an 18-year cycle for industrial and resource shares?
Why index fund of Aussie shares has done much worse than its index.
Limited submissions on tax changes not good enough.
NZ shares, already favoured, shouldn't get still more favourable tax treatment.

NZ Herald October 14 2006

Q&As: Why I won't do research on an Aussie resource index fund.
Too little time to study the new tax plans for international share investments.

Syndicated column September 23 2006: Australia is not good enough to get the spread

It's a basic principle of wise investing: Spread your share investments around the world, to spread your risk.

But proposed tax changes will increase taxes on overseas share investments beyond Australia. So should we stick with Australasia?

NZ Herald August 26 2006

Q&As: What you should check out before you buy a house. And who should do the inspection.
Some possible progress on the proposed changes to international investments tax.
Who's right and wrong in the maths on the new coins.
Financial adviser explains how "Jane", with her $1 million in term deposits, could save on fees.

NZ Herald August 19 2006

Q&As: The average New Zealander can't afford to buy a house, or can they? The poor don't stay poor.
How one man keeps his costs down.
Flaws with a tax parable? And a man living on $1,000 a year?
An investment adviser gives us inside info on commissions.

NZ Herald July 8 2006

Q&As: What to do about negligent adviser who recommended bad finance company investment.
Do high earners pay too much of the tax burden?
Parable about why the highest taxed get the biggest tax breaks.

Syndicated column July 4 2006: A worrying prediction about the way share funds are run

A section in a submission to the government from Shareholders Association chairman Bruce Sheppard caught my eye.

Referring to proposed changes in the way share funds are taxed, he wrote: "The ability of NZ and Australian funds to trade without having to pay tax may well result in higher trading by institutions, as the active funds strive to differentiate their performance from the index by generating trading gains.

NZ Herald July 1 2006

Q&As: Comparing NZ and other countries' taxes and lifestyles.
Several Q&As on government's tax proposals, including submissions info, Bruce Sheppard quotes and size of Grey List share markets.
A promise for a tax-change-free column next week!

NZ Herald June 24 2006

Q&As: All on government tax proposals

NZ Herald June 17 2006

Q&As: All on government's tax proposals

NZ Herald June 10 2006

Q&As: All on government's tax proposals.

NZ Herald June 3 2006

Q&As: All on government's tax proposals.

NZ Herald May 27 2006

Q&As: All on government's tax proposals.

NZ Herald article May 22 2006: Readers sound off about proposed international tax changes

Readers of the Money column in the Weekend Herald have sent Mary Holm an unprecedented number of letters commenting on the government's proposals to change tax on investments. The following are edited excerpts:

NZ Herald May 20 2006

Q&As: All on government's tax proposals.

NZ Herald May 13 2006

Q&As: All on government tax proposals

NZ Herald May 6 2006

Q&As: All on government's tax proposals

NZ Herald April 29 2006

Q&As: All on government tax proposals

NZ Herald April 22 2006

Q&As: All on government's tax proposals

Syndicated column March 28 2006: What we don't know CAN hurt us

One of the first things journalists are taught is to make the first sentence of an article a "grabber", something that will perhaps surprise readers and make them read on.

So this column is officially starting now: Every New Zealander over 65 gets NZ Super, no matter how rich they are.

NZ Herald March 25 2006

Q&As: Stick with share fund investments.
Is it wise to depreciate if you're selling your rental quite soon?
Tax treatment of the expenses of rebuilding leaky rental property.

Syndicated column March 14 2006: The last word (hopefully) on taxation of rentals

Reader feedback keeps coming about the taxation of rental properties. So I've decided to go to the horse's mouth, Inland Revenue. But first, a typical email on the subject:

NZ Herald March 11 2006

Q&As: A landlord's nightmare.
Credit cards v eftpos.
Optimism, pessismism and oil prices.

Syndicated column February 28 2006: Let's keep that chewing gum money

Please forgive us, Dr Cullen, and don't take away our chewing gum tax cut!

I know some of us have been scathing about it. As you said recently, "I have noted that people have said they don't really think it's worth having. If people say that, then of course they may find their wish has been granted. Be careful what you ask for, or you may get it."

Syndicated column February 14 2006: Views on negative gearing are poles apart

Negative gearing is like the death penalty. People feel strongly both ways about it, judging by reactions to my last column.

In that column, I wrote that negative gearing - which occurs when a landlord makes year-by-year cash losses on a mortgaged property - is becoming more common. This is mainly because rents haven't risen nearly as fast as house prices.

Syndicated column January 31 2006: Negative gearing may come back to haunt you

Many landlords say they don't mind or even like to be negatively geared - making year-by-year cash losses on a mortgaged investment. But it never looked all that appealing to me. And recently I heard a rather compelling argument against it.

NZ Herald December 17 2005

Q&As: Should newly separated woman buy a house or rent?
Our total tax rate depends on whether we spend or save.
End of year message.

NZ Herald December 10 2005

Q&As: $29,000 rental in Gore not the thing for a risk-averse man.
More on tax on a second job.

NZ Herald December 3 2005

Q&As: Who gets the money when mortgage rates increase?
2 Q&As on whether the tax rate on second jobs is fair.

NZ Herald November 12 2005

Q&As: The pros and cons of self employment and income splitting.
Comparing shares with property is tricky.
How movements in the dollar affect investment in international share funds.

NZ Herald November 5 2005

Q&As: Share funds v rental property.
Income splitting by the self-employed - is it OK?

NZ Herald October 22 2005

Q&As: Several on how families are taxed.
Can property sellers and agents lie to buyers?
Protestor over tax on international shares gets stroppy.

NZ Herald October 15 2005

Q&As: 2 on how families should be taxed.
Should middle-income families get child care support?

NZ Herald October 8 2005

Q&As: 5 on how different types if families should be taxed.
Many readers sent submissions to the government on proposed changes on taxation of international shares.
Am I a National Party supporter?

NZ Herald October 1 2005

Q&As: Should single people get tax breaks too?
Several Q&As on proposed tax changes on international shares.
How you can sell your home via a website.
What are our tax rates?

NZ Herald September 24 2005

Q&As: What are reasonable conditions for a home buyer to insist on?
Government's proposed tax changes on international shares.

NZ Herald August 27 2005

Q&As: Grandparents don't need a trust to save for their grandchildren.
New Zealand's tax on capital gains is confusing.
Depreciation on rental property.

NZ Herald August 20 2005

Q&As: Should a youg woman put her savings into her rental mortgage or diversify?
How to get through to Inland Revenue.
Take care when depreciating rental property.

NZ Herald August 13 2005

Q&As: Risky to buy shares while waiting to buy a house.
Is the gain on excess shares in an IPO taxable?
Rental property depepreciation and Inland Revenue.

NZ Herald July 30 2005

Q&As: What chattels can be depreciated separately in a rental property?
Share trading and tax on capital gains.

NZ Herald July 23 2005

Q&As: Pay off rental property mortgage as you approach retirement.
When is a capital gain taxable?

NZ Herald July 16 2005

Q&As: When to declare share trading profits.
What to do if travel agent charges more for using a credit card.
Different Visa rules in Australia, and how Visa operates.

Are New Zealanders bad savers? It's all in the way you look at life

Key Points

· Some surveys on retirement saving are unduly pessimistic.

· Saving for retirement should be defined much more broadly than putting money into financial assets.

· Other ways of saving, such as repaying debt or getting an education, are wiser moves for some people than financial investing.

· Research shows that most New Zealanders are saving enough to maintain their pre-retirement standard of living after they retire.

· When we define retirement saving more broadly,...

NZ Herald June 18 2005

Q&As: When does tax on capital gains apply to share investors?
When can share investors deduct newspapers and investment reports?
Are shops allowed to charge more if you use a Visa card?
The role of luck in house price rises.

Syndicated column June 14 2005: Investing offhore not as risky as it seems

It's an oft-quoted excuse for not investing offshore: If you do, you take on foreign exchange risk. But is it really risky?

Syndicated column May 3 2005: Index funds still the best, despite tax changes

An ice cream is still delicious without the chocolate dip. The same goes for index share funds.

Since they made an appearance in New Zealand in the late 1990s, these funds have had a tax advantage over the other type of share funds, called active funds.

It seems likely that the tax advantage will be removed soon. But even if it goes, I still think index funds are best.

Syndicated column March 22 2005: Rentals not necessarily as good as they seem

Rental property is sometimes an excellent investment. There, I've said it, for all those who reckon I'm anti-rentals!

Often, though, rentals are not quite as good as people think - and not just because the tax breaks are over-rated, as I said in my last column.

Syndicated column March 8 2005: Rental property tax breaks don't amount to much

I don't get it.

Politicians and economists have been complaining lately that rental property has tax advantages over shares. It's hardly a new claim. But what are these advantages - beyond depreciation, which is vastly overrated?

Holm Truths autumn 04

'His & Hers' investment styles - How gender affects the way we invest

Also in this issue: From the Mailbox - Borrowing to invest, eg in a rental property

Holm Truths spring 03

Life, limbs and livelihood - How much life, disability and income protection insurance do you need?

Also in this issue: Great Debate - Australian v international shares

Holm Truths winter 02

Getting into gear: Borrowing to invest makes a good investment better and a bad investment worse

Also in this issue: Great Debate - Fixed v floating mortgages

Holm Truths autumn 01

Terms of enrichment: How long you want to tie up your money affects what you invest in.

Also in this issue: Great Debate - Shares v rental property