Ring Fencing Matters

[Viking]

Can't claim back but don't have to pay on the rent either.
Let's face it - if tenants would pay 15% more for rent (GST) then we'd be charging them already, not waiting for the GST excuse.

Please don't give the rabid socialists any more ideas about how they can milk us.

[Don't believe the Hype]

Can't claim back but don't have to pay on the rent either.
Let's face it - if tenants would pay 15% more for rent (GST) then we'd be charging them already, not waiting for the GST excuse.

I'm not sure i agree.

If a tax of $0.10 is applied to public transport (i.e. taxi) the cost of a taxi ride would go up by $0.10 to cover this. If GST was applied to rent then we would become tax collectors like all other businesses, we would collect and pass on to the IRD.

The GST treatment of my costs on all maintenance, materials, services etc that are provided to me as a landlord in the pursuit of providing accommodation is yet another DISADVANTAGE vs. if i was running any other business.

If it were a fruit shop or if I was a taxi driver i could claim all the GST i paid. As a land lord, I cannot.

[Anthonyacat]

If a tax of $0.10 is applied to public transport (i.e. taxi) the cost of a taxi ride would go up by $0.10 to cover this. If GST was applied to rent then we would become tax collectors like all other businesses, we would collect and pass on to the IRD.

This assumes the market is not already priced near the maximum rents it will bear. I've no idea whether it is or not, but given the stories you hear it feels like it.

If tenants as a whole group (per localised market) simply can't pay 15% more, gross rents may rise less than 15%, resulting in a lower net return to landlords.

In a tiny scale, consider businesses offering a $10 lunch, prior to the GET change a few years back. A few changed to a $10.50 lunch, but there is price pressure at that point, and most reverted, just absorbing the new tax.

[Keys]

And, those who were charging more for services on public holidays pulled their heads in when there services were no longer being requested.

[Learning]

And, those who were charging more for services on public holidays pulled their heads in when there services were no longer being requested.

The look on their faces when your group of eight tell them you're going next door after being told there's a 15% surcharge. Priceless.

[PC]

Most reduced the size of the lunch and still charged $10 you mean.
Sort of like what has happened to all the supermarket food.
Perhaps $200pw will only get you half a room now - have to share!

[eri]

be careful

you could actually be in breach of the electoral rule

of no party promotions on polling day

you'll note all the billboards had to be down before voting this morning

somewhat archaic law considering 25% of voters seem to have voted early this time

[Perry]

Of course it's an archaic law. But given the immaturity of the NZ constituency, maybe not?

[simongu]

To: Anthonyacat, having managed projects at a bank HQ here in NZ, can confirm that banks have different rates of GST they need to apply depending on the nature of the business line (ie how much of the revenue is non-GST). In the place I was it wasnt too bad, only about 3 rates, but your premise is correct.

[donna]

Hard to say which way it's going to go - Labour might make Winston deputy or even PM to get in and could he turn that down?

cheers,

Donna

[Nick G]

I imagine the Nats would give him VP and would make concessions around immigration and offshore buying. I imagine it would be hard to limit offshore buying with our trust laws, all it takes is one local beneficiary and the trust doesn't need to pay that person right?

[Perry]

VP?

Vainly Posturing?

Very Protective?

Vapid Politician?

Variegated Pansy?

Or deputy PM perhaps?

[eri]

imho

if winnie goes with labour

it'd be a crippled 3 years of headless gov.

or 18 months of angry shouting

leading to an early election

[Davo36]

Same with National though eri.

Some were saying on the telly last night that it might in fact be better for Jacinda to wait for the National / NZ First coalition to fall apart then take office.

[Perry]

Taxcindarella to the rescue, eh?