After becoming Prime Minister, Luxon had initially claimed a $52,000 accommodation allowance to stay in his own apartment near Parliament. He paid that back and stopped collecting it after a backlash over it. He has been paying his own accommodation costs since then. He has consistently said he hoped to move into Premier House at some point, but its condition and maintenance work had prevented it.
It comes as MPs receive their first pay rises since 2017 and tax cuts come into effect from tomorrow.
Luxon told 1News this morning that he would “absolutely” donate his $20 weekly tax cut to charity - the second charity pledge he has made in recent months. He will get a tax cut of $40.10 a fortnight.
In April, he also promised to donate his pay increase to charity. The Prime Minister’s pay has lifted from $471,050 up until the election to $498,300 from July 1 this year. From July 1 2026 it will lift to $520,500.
Luxon has said he and his wife Amanda had regularly donated to charity throughout their lives.
The post-election Remuneration Authority determination on MPs’ pay delivered them an immediate 2.8% pay rise, backdated to last October, followed by a second 2.9% increase from July 1.
The Prime Minister is given an official residence, but can choose not to live in Premier House and can choose to claim an accommodation allowance to live elsewhere - although Luxon was the first to claim that allowance.
All of his predecessors other than former Prime Minister Sir Bill English had lived in Premier House, where there is an apartment on the top floor for the Prime Minister. The lower floor is often used for events.
Luxon is yet to say what decisions he has made on the future renovation and refurbishment for Premier House after a report by the Premier House board recommended a $33m refurbishment and called for an ongoing long-term maintenance plan for the residence.
The report found Premier House was not up to the standard befitting a Prime Minister, was outdated and needed modernisation.
Labour leader Chris Hipkins has said he would offer support for any reasonable renovations.