On 24 August 2015, new legislation was submitted to the New Zealand parliament, the Taxation (Bright-line Test for Residential Land) Bill. According to a statement from Inland Revenue, the bill includes a new “bright-line” test and other measures to improve compliance with the residential land sale rules.
Under the test, gains on the sale of residential land by both residents and non-residents are subject to tax if purchased and sold within two years. Residential land is defined as:
- Land t…