New Zealand Property Investors' Federation

The NZPIF is the umbrella body for 20 local Property Investors' Associations throughout New Zealand.

(027) 357 9243

www@nzpif.org.nz

Federation Activities

Announcing new date for webinar and interest deductability consultation launched

Interest deductibility consultation launched

On 23 March, the Government announced that deductions for interest expenses on rental properties will be restricted from 1 October 2021. The Ministers of Finance and Revenue today released a public consultation document seeking feedback on a range of design issues for implementing that proposal, including:

  • Interest on a mortgage on a residential investment property (acquired before 27 March 2021) will be gradually phased out between 1 October 2021 and 31 March 2025. Other interest would immediately cease to be deductible from 1 October 2021.
  • Land outside New Zealand would be excluded from the new rule as would a number of other types of properties.
  • Exemptions are proposed for property developers and for owners of new builds. In addition, initial or early owners of new builds would be subject to a five year bright-line test, rather than the ten year test.

The proposals do not affect a person's main home. For more information, see:

Also available are summary sheets briefly outlining specific topics covered in the discussion document:

 

You are invited to provide feedback on the discussion document

 

This feedback can sent to Policy.Webmaster@ird.govt.nz with "Design of the interest limitation rule and additional bright-line rules" in the subject line. Feedback must be received by 12 July.

NZPIF will be summarising the information and also sending out information on how to do a submission

The measures, once finalised, will be introduced to Parliament in a tax Bill later this year, and will apply from 1 October 2021.

 

Postponment of the scheduled June 24 Webinar with Tenancy Services

A new date will be circulated as soon as possible.

It has been great to receive many questions from members.  These have been forwarded to Tenancy Services in preparation for the scheduled June 24 webinar. 

However a number of these questions relate to policy and legislation, rather than to Healthy Homes regulations, and can only be answered by a representative from Ministry of Housing and Urban Development (HUD). Tenancy Services has requested that the webinar be postponed until end of July or August when a representative from HUD can join the webinar to answer these. 

Please continue to send your questions to jan.hains@nzpif.org.nz