Te Pāti Māori has a message for landlords who take advantage of interest deductibility handouts - be prepared to pay it back in 2026.
“The coalition’s plan to reintroduce interest deductibility will flip the housing market in favour of wealthy investors and push first home buyers out of the market,” said co-leader Rawiri Waititi.
“We’re issuing a stern warning to landlords – if you take from the taxpayer, expect to pay it back as soon as we take office.
“We are witnessing the largest transfer of wealth, sponsored by the Government on behalf of the taxpayer, outside of the Covid-19 pandemic.
“The same politicians who think feeding tamariki at school is a ‘waste of money’ are giving a $3 billion handout to themselves and their rich mates.
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“This policy should tell you all you need to know about the character of this Government and who they work for,” Waititi said.
“Interest deductibility only makes it easier for investors to suck up an already tight housing market. They are loaded with the deposit, they have equity on existing property, and now they will have the added advantage of deductibility to fuel their borrowing.
“This will make homeownership unattainable for anyone who isn’t using the housing crisis to make money.
“The Government are gaslighting everyday New Zealanders by claiming landlords will act in good faith and give rent relief. There is no way anyone who uses housing for profit is going to do that,” said Waititi.
“This is not about creating more rental properties for people to live in, it is about creating more renters for landlords to exploit. It is not about lowering rents; it is about increasing profits.”
Waititi, Te Pāti Māori finance spokesperson, said tax equity would also be high on their agenda.
“Along with our plan to reform our broken tax system through wealth and capital gains taxes, we will also come after those who deduct interest from their tax liability,” he said.
“We are putting landlords on notice. Te Pāti Māori will invest in our tamariki and redistribute wealth. Those who are taking advantage of policy to accumulate wealth will pay for it.”
