ACT’s petition to stop Labour’s interest deducibility change will be presented to Parliament today,” says ACT Deputy Leader and Housing spokesperson Brooke van Velden.

“Almost 16,000 people have gone to the ACT website to say they reject Labour’s proposed changes. ACT is listening and we’ll make sure Labour knows that New Zealanders don’t want these changes.

“The NZ Property Investors’ Federation estimates the cost to landlords who let out a $600,000 house will be an extra $6000 a year.

“Some will sell up, but many landlords will wear the change because it’s so unfair it’s unlikely to last across multiple Governments.

“Those who choose to keep offering rental houses will inevitably pass some or all of that extra cost onto tenants, thereby making it harder for tenants trying to save for a home to build a deposit.

"Through ACT’s campaign against the change, we have heard harrowing stories of people affected by the removal of interest deductibility. For example, a parent who bought self-contained units for their two disabled sons, are faced with selling them because they will be caught in the Government’s tax changes.

"The real problem is supply. ACT says the current generation of first home buyers do not need new taxes, but to Build like the Boomers. We need major reform in infrastructure funding and planning, resource consenting, and building consents.

"Without supply side reform, the Government’s policy is just an attempt to choose who gets to miss out in a supply constrained market. And the Government can’t even get that right.

“Consultation ends on Monday. Our petition sends the Government a clear message that New Zealanders don’t want this change to go ahead.”

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