The reintroduction on interest deductibility w/ Associate Professor Michael Rehm: March 20, 2024

The coalition Government has announced that they will reintroduce interest deductibility for property owners with a mortgage.

This would mean that property owners with a mortgage would be able to deduct the interest they pay on their mortgage, from their total income when calculating how much tax they pay.

The coalition government has claimed that this move will help both landlords and renters with David Seymour that landlords not being able to deduct interest from income is a cost that is inevitably passed on to tenants, contributing to New Zealand having all time high rental costs.

This claim has been disputed with economists saying that the reintroduction of interest deductibility will have little to no effect on the prices landlords choose for their rentals.

Nicholas spoke to Associate Professor Michael Rehm about the changes.