Abolish Labour’s Rental Tax

Labour claimed to help renters, then made the homes they live in more expensive to provide. ACT will reverse another of Labour’s renters’ taxes by ending loss ring-fencing. This will ease pressure on rents, freeing up money for repairs and investment in more homes, and ultimately give renters more choice and market power.

ACT will:

• End loss ring-fencing for future rental losses. Allow residential rental losses incurred from the day the policy takes effect to be offset against other taxable income.

• Cover existing homes and new builds. Improve the viability of rental investment, including investment in new homes.

• Retain the current treatment of earlier losses. Losses already ring-fenced will remain subject to the existing rules.

In our team’s words:

ACT Leader David Seymour says:

“There’s no such thing as a tax on landlords that renters can safely ignore. When Labour made rental housing more expensive to provide, tenants faced the consequences through pressure on rents, fewer homes, less choice, and poorer quality.

“Removing ring-fencing will improve the viability of rental investment, including investment in new homes. Alongside ACT’s resource management reforms and opening up access to new building materials, it will encourage supply and give renters more choice.”