Keith Melville

This is a response to John Capener’s  question wanting to know the fate of the $2.9 billion set aside to fix changes to the tax system for landlords imposed by the previous government (Beacon, Wednesday, October 15).

The $2.9 billion is often described as a landlord tax break but in reality, that sum represents the removal of a tax penalty for landlords with mortgages.

I stress I am not an accountant, and I assume the $2.9 billion cost is for restoring the tax system to neutrality.

The cost of doing that means two things. The Government loses the extra funds it gained when Labour weaponised the tax system against landlords with mortgages from 2021 to 2024. It also means landlords have regained the right to claim interest deductibility and are treated the same as other businesses.

It does not mean landlords receive a tax break, special treatment or anything extra.