According to Kiwi Income Property Trust, changes of tax in the Government's budget have abridged the prosperity of investors in listed property trusts, many of whom are retirees. The trust fell 1.1% to 92 cents.

The kiwi might drop further after reports and later Government officials denied and recommended that Spain was approaching a fiscal bailout following the diverse data from the US.

Changes include a reduction in the depreciation rate applicable to buildings to zero from April 1, 2011 and the elimination of depreciation loading for assets, which have been attained after May 20, 2010. However, the Portfolio Investment Entity tax rate applicable to the trust falls from 30% to 28% from April 1, 2011.

"It is disappointing to note the Government's decision to effectively target tax increases at investors in property trusts listed on the stock exchange", said Chris Gudgeon, Chief Executive of the Manager of the Trust.

The Government had not distinguished between the housing rental properties investors, looking for tax-free capital gains and listed property trust investors who not only propped up New Zealand's capital markets but also remunerated considerable tax through the trust on the rental earnings.