Is a bright-line test extension imminent?

While Prime Minister Jacinda Ardern has ruled out a traditional capital gains tax on investment properties during her time in charge, the Labour Government is exploring ways to take the heat out of the investment market following a record year. 

There's a growing belief that Finance Minister Grant Robertson will ask the Treasury about an extension to the bright-line test.

Robertson has confirmed he asked Treasury to review the effectiveness of the current model.

The bright-line test currently requires people who sell investment properties within five years of buying them to pay income tax on capital gains. The bright-line was introduced by National at two years, and extended by the coalition in 2018 to five years.