PETITION: Reverse interest deductibility changes, abolish bright-line test
Labour's housing tax changes are divisive and unfair. They're about blaming mum and dad investors and will do nothing to improve housing affordability.
ACT would allow landlords to claim interest deductions on residential property income, a right Labour proposes to remove.
Labour's extension of the bright-line test has created a capital gains tax by stealth. When National introduced the bright-line test in 2015, David Seymour said:
“…this tax is the acorn of a capital gains tax. It is a measure that will grow from 2 years to 5 to 10 to 15 years. You watch: it will eventually apply to a wider range of homes. It is the acorn that the National Party has planted that will grow into a full-blown capital gains tax.”
Sadly, ACT has been vindicated. The pre-2015 law would have seen tax paid on income from property speculation. The bright-line test was unnecessary but has been allowed to grow into a CGT. It will push rents up, making it harder for Kiwis saving for their first home.
ACT is holding them all accountable. A vote for ACT is a vote to:
• Abolish the bright-line test completely;
• Reverse Labour's interest deductibility changes.
The focus must be on easier planning rules and smarter infrastructure funding. Only that will address house affordability for the next generation. You can read ACT's comprehensive housing plan, Build Like The Boomers, here.
Brooke van Velden
ACT Deputy Leader, Housing Spokesperson