13 Sep 2014

Minister rejects need for rental tax

12:46 pm on 13 September 2014

The Minister of Housing says there is no need to review the way rental housing is taxed as part of the drive to make homes more affordable.

Nick Smith.

Housing Minister Nick Smith Photo: RNZ / Diego Opatowski

First-home buyers have complained they are competing against investors, and the Productivity Commission has described some tax treatment of rental properties as a potential tax subsidy.

However, Housing Minister Nick Smith said while the commission would look at land supply, the Government did not share its view on taxation.

He said it was essential the tax system was kept relatively neutral regarding different types of investment.

The commission's initial report on housing affordability said the way taxation applied to housing was not ideal, but the matter would need to be part of a review of the entire tax system.

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