The Labour party is proposing to tax income over $180,000 at 39%, which isn’t great news if you fall into that category
But it is probably a lucky escape for property investors. In fact, landlords have “dodged a bullet” according to property commentator Ashley Church, who says “even those who are affected by the policy will probably be relieved.”
Why is it a relief? Because the Government has been targeting rental property owners with new legislation for three years, increasing the costs of rental property ownership considerably. The Healthy Homes standards and changes to tenancy rules are adding to the obligations and expenses for every rental owner. And landlords remain unpopular in the media, with plenty of ideas having been floated to make them pay more – perhaps a capital gains tax, or a wealth tax of some kind.
With the announcement of this proposed tax rate for high-income earners, it looks as though landlords won’t be specifically targeted by any further taxes at this stage.