Labour’s U-turn on interest deductibility rules for corporate investors should be extended to all rental property owners, National’s Housing Spokesperson Chris Bishop says.

“Labour campaigned on not introducing any taxes but broke their promise straight after the 2020 Election by imposing a new tax on tenants, through the removal of interest deductibility as a legitimate expense for rental property owners.

“The Labour Government was warned by everyone – from officials to landlords – that this tax would lead to higher rents, and put pressure on the state house waiting list and emergency housing.

“Labour refused to listen. Now rents have gone up $140 a week, the state house waiting list is up by more than 20,000, and the Government spends $1 million per week housing people in motels.

“Worst of all, data released by National this week shows more than 200 kids are living in cars – four-and-a-half times more since Labour came to office.

“Labour’s Tenant Tax is hurting the very people it was intended to help.

“The Government has now done a massive U-turn and excluded big Build to Rent developments by corporate investors from this new tax.

“While we welcome this move, we’re campaigning for it to be extended to everyone – not just big corporate investors.

“Labour’s removal of interest deductibility was always unprincipled, as well as being a broken promise. A fundamental principle of tax law is to tax profit, not revenue.

“Mum and Dad landlords aren’t the enemy. They’re critical in addressing our housing supply problems.

“The next National Government will reverse Labour’s Tenant Tax, as well as the extension of the brightline test to 10 years.

“But while Kiwis wait for an economically-sensible government, we will work to get Labour to extend their big U-turn on interest deductibility to all investors.

“Kiwis can sign up to our campaign at: https://www.national.org.nz/tenanttax”