Property marketTax changes are needed in order to encourage more investments and savings in New Zealand.

Last week at a speech given during the Trans-Tasman Business Circle in Auckland the chief executive of BNZ Bank Andrew Thorburn said that the taxation of property needs to be changed to further promote investment into businesses.

He said that there are insufficient options for individuals looking to invest into assets other than property.

Listing off possible alternatives, Andrew Thorburn suggested that further development is needed into encouraging people to invest in publicly listed companies, venture capital and capital markets.

Describing the current investment market in New Zealand, he said that “…the tax system currently favours investment in residential property, as opposed to bank deposits and dividends from companies, and that distortion needs to be addressed.”

The BNZ chief also added that further development and funds are needed in the KiwiSaver scheme in order to allow operators to invest in New Zealand businesses, and making the scheme compulsory would be a positive step towards the goal.

Photo by Alan Cleaver