Brightline traps remain

While the changes have been welcomed by Chartered Accountants Australia and New Zealand (CAANZ), they still leave a number of traps, says New Zealand tax leader John Cuthbertson.

They are still at the margins, and those selling their homes need to be aware that traps still abound, he says while commenting on some of the changes proposed by the select committee.

“A little bit of leniency is provided for construction of the main home.”

Where a new main home takes more than 12 months to build, potentially exposing the build to the Brightline, a new “reasonable time” test will allow the construction period to be counted as “main home days”.