Government 'twisting knife' with new building tax review

Private commercial property owners, corporates and listed property trusts could be big losers if there are further changes made to depreciation rules, according to an investment expert.

Craig Tyson, ING (NZ) investment manager, said the fallout from last month's Budget could be even more severe for commercial property investors.

There were risks that the quality of New Zealand's office blocks could deteriorate and earnings from listed landlords could fall if further building tax changes are ushered in.

After April next year, landlords will be unable to claim building depreciation but Tyson, who manages more than $300 million of funds invested in the New Zealand listed real estate sector, said he was worried the Government would go further.

Inland Revenue is examining banning depreciation on fixtures and fittings and Tyson said that would be more damaging than the changes announced in May.

To read the full NZ Herald article, click here

Posted: 1 Jul 2010

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