From today, if you own an investment property you can now write off 80 percent of your mortgage interest. And in a year's time, you can write off 100 percent.
Bringing back interest deductibility restores consistency to our tax system and eases pressure on a tight rental market.
When Labour removed interest deductibility, they knew costs would be passed on to renters, but were more interested in scoring a political point by whacking landlords. And with some landlords priced out of the market entirely, the supply of available rentals was further constrained.
ACT is proud to be part of a Government that understands the real solution to a rental crisis is to improve renters' negotiating position by increasing the available supply of properties. Ultimately that means we must unwind the red tape that makes it so difficult to build new homes. But in the short term, reducing unnecessary barriers to renting out property is a step in the right direction.
Prior to the election, more than 21,000 New Zealanders signed ACT's petition to restore interest deductibility. We're glad to now deliver on this commitment in Government.