Property investors relieved at Labour's call to keep 'tax-cut for landlords'

<p>The Property Investors Federation is hailing Labour's decision to leave interest deductibility settings alone, if elected.</p> <p><b>By Giles Dexter of </b><a href="https://www.rnz.co.nz/news/politics_election-2026/1509858/property-investors-relieved-at-labour-s-landlord-tax-deduction-promise" target="_blank"><b>RNZ</b></a></p> <p>Labour has <a href="https://www.1news.co.nz/2026/09/21/labour-rules-out-interest-deductibility-changes-for-landlords/" target="_blank">ruled out any changes to the settings</a>, with leader Chris Hipkins saying the party was committed to a capital gains tax instead.</p> <p>In 2024, the government reinstated landlords' ability to claim tax deductions for interest in residential investment properties - essentially allowing investors to claim their mortgage costs against their rental income.</p> <p>The policy was forecast to cost $2.8 billion over four years, and reversed a decision made by the previous government, which had removed the ability for landlords to offset their interest expenses against taxes paid on rental income in the hope it would help first home buyers.</p> <p>Despite still decrying the policy as "tax cuts for landlords" as recently as last week, Labour has opted to keep the current settings in…