The CGT Alternative: A Title Bond

Published on 23 April 2019

What Capital Gains Tax?

The New Zealand coalition Government, led by Labour, just spent $2M on a Tax Working Group to find a way to introduce a Capital Gains Tax (CGT) to help curb the soaring house prices. They failed to find consensus and scrapped the idea. It was unpopular and affected too many areas of contention including KiwiSaver portfolios, existing farms and small businesses.

Where's the problem?

We have to ask some fundamental questions: Is there a way to only target property? Can we help first home buyers? How can we generate revenue for the government? How do we not penalise families trying to get ahead?

What's the solution?

A discussion with my wife led to a lightbulb moment... what if we introduced a bond tied to a property's title? Here is how we think a Title Bond (the Bond) should work:

How this helps

This would help the government (and by extension, all of NZ) in the following ways:

What else?

Some other points of note:

 

Let's discuss this further...

At the moment, this is just an idea. I invite you to discuss this with your friends, neighbours, local politicians and the media.

If you would like to discuss this with me, you can contact me via this website.