Home > Updates > Details of interest deductibility rules released
The Government has released draft legislative proposals aimed at limiting the deductibility of interest incurred for residential property investments. We do not expect these proposals will change, and once legislated they will take effect from 1 October 2021.
Residential rental properties used for either short-term or long-term accommodation will be subject to the proposed rules. However, the following exclusions and exemptions are proposed:
These information sheets on the IRD’s website provide general information about how the proposed rules are intended to work:
Please contact us if you would like any assistance in reviewing how the Government’s announcements may impact your situation.
11 June 2021: Update on Government’s property tax changes
23 March 2021: Bright-line test extended and interest deductions scrapped for investors