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The Government has released a Supplementary Order Paper (SOP) which proposes changes to the ability of residential property investors to deduct the cost of their loan interest when it comes time to file a tax return.  

Supplementary Order Paper No 64 - New Zealand Legislation

The Government wants to stimulate the supply of housing, so the proposals also exempt property development and new builds from the interest limitation rules. 

The proposals will be considered by Parliament and may change. 

These information sheets have more details about the proposed rule changes: 

Interest deductibility proposals at a glance

Properties not affected by the interest deductibility proposals

How the rules work for certain entities

Exemptions for property development and new builds

How interest deductions are affected

Changes to the bright-line property rule

The Finance and Expenditure Committee will consider the proposals contained in the SOP and will call for submissions on the proposals. 

You can find more information in the SOP commentary 

Last updated: 27 Sep 2021
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