Bright-line test and its impact on property speculation

The bright-line test clarifies tax rules on property sales, making it easier for Inland Revenue to tax gains on non-family homes sold within a set period. The test, with a two-year period for properties sold after July 1, 2024, aims to simplify the process of taxing speculative property profits, not necessarily reduce speculation itself. Information sharing between Inland Revenue and Land Information New Zealand has significantly aided proactive tax enforcement regarding property sales.