Labour’s U-turn on interest deductibility rules for corporate investors should be extended to all rental property owners, said National Housing spokesman Chris Bishop.
“Labour campaigned against introducing taxes, but broke their promise just after the 2020 election by imposing a new tax on tenants, scrapping interest deductibility as a legitimate expense for rental property owners.
“The Labor Government has been warned by everyone – from civil servants to landlords – that this tax will drive up rents and put pressure on the State House waiting list and emergency housing.
“Labour refused to listen. Now rents have gone up by $140 a week, the State House waiting list has grown by more than 20,000, and the government is spending $1 million a week to house people in motels.
“Worst of all, data released by National this week shows that more than 200 children are living in cars – four and a half times more since the Labor Party came to power.
“The labor tenant tax is hurting the very people it was meant to help.
“The government has now done an about face and excluded large Build to Rent developments by corporate investors from this new tax.
“While we welcome this decision, we are campaigning for it to be extended to everyone – not just big businesses.
“Labour’s abolition of interest deductibility has always been unprincipled and a broken promise. A fundamental principle of tax law is to tax profits and not income.
“Mom and Dad’s owners are not enemies. They are essential to solving our housing supply problems.
“The next national government will cancel the tax on labor tenants, as well as the extension of the light line test to 10 years.
“But while the Kiwis wait for an economically sensible government, we will work for Labor to extend their big U-turn on interest deductibility to all investors.
“Kiwis can sign up for our campaign at: https://www.national.org.nz/tenanttax”
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