Supplementary Order Paper No 138

No 138

House of Representatives

Supplementary Order Paper

Tuesday, 10 November 2015

Taxation (Bright-line Test for Residential Land) Bill

Proposed amendments

Julie Anne Genter, in Committee, to move the following amendments:

Clause 4

In clause 4, new section CB 6A (page 3, line 4 to page 5, line 3), replace in each place it occurs “within 2 years” with “within 5 years”.

Clause 6

In clause 6, heading to new section CB 16A (page 5, line 25), replace “within 2 years” with “within 5 years”.

In clause 6, new section CB 16A(2)(a) (page 6, lines 4 and 5), replace “the 2 years” with “the 5 years”.

Clause 8

In clause 8, new sections DB 18A and DB 18AB (page 6, line 29 to page 8, line 4), replace in each place it occurs “within 2 years” with “within 5 years”.

Clause 10

In clause 10, new section FB 3A(1) (page 8, lines 18 to 19), replace in each place it occurs “within 2 years” with “within 5 years”.

Clause 11

In clause 11, new section FC 9(2) (page 9, line 26), replace “within 2 years” with “within 5 years”.

Clause 12

In clause 12(1) (page 10, line 7), replace “the 2-year” with “the 5-year”.

Clause 13

In clause 13, new section FO 17(2) and (3) (page 10, lines 14 to 35), replace in each place it occurs “the 2-year” with “the 5-year”.

Clause 14

In clause 14, new sections GB 52 and GB 53 (page 11, line 1 to page 12, line 11), replace in each place it occurs “within 2 years” with “within 5 years”.

Clause 15

In clause 15 (page 12, line 15 to page 14, line 30), replace in each place it occurs “within 2 years” with “within 5 years”.

Explanatory note

This Supplementary Order Paper extends the 2-year holding period to 5 years. A 2-year period is too short, and will still be relatively easy for speculators to avoid the rule by holding property just over 2 years. Most other OECD countries have a holding period of at least 5 years. Treasury also advised the Government that a bright-line test should be 5 years.