Another broken Government promise on tax

The Labour Government’s interest deductibility change is another broken tax promise that will cost mum and dad property investors $800 million, says National’s Shadow Treasurer Andrew Bayly.

Budget documents released today show that Treasury estimates the revenue gain would be $800 million.

“The Government claimed that removing the ability for landlords to deduct mortgage interest from their income taxes was closing a loophole. It is not, and New Zealand’s tax professionals agree.

“They claimed this was not an increase in taxes, as they promised at the election, because they were simply removing the ability to reduce income tax.

“In reality, this is yet another new tax – and a blatant tax grab – that’ll sting mum and dad landlords by almost $1 billion.

“When we are the Government, we will reverse any changes made to interest deductibility because it’s yet another blunder by a Government that has no idea how to fix the housing crisis, and which will only drive rents even higher.

“The Government is desperate for ways to fund their wasteful spending, and they’re making mum and dad landlords foot a big part of the bill.”