Quote Originally Posted by fungus pudding View Post
No there isn't. Income tax should be reserved for income from profit. There may be an argument for the bright line test, and I happen to think there is as our tax policy to tax gains based on intention has proven completley unworkable - to the point the IRD seems to have abandoned trying to collect tax from all but the most blatant habitual traders, but there is no such reason to apply income tax to an outgoing. It will throw the rental market way out of balance, ultimately resulting in rising rents. Labour should study their moves in the housing market right through the party's history to learn every move they have ever made to control rents has ended in disaster.
I have already agreed denying interest deductibility on a specific investment is inconsistent and unfair, but if you are allowed to claim interest on a new build and the bright line test gets cut back to 5years instead of 10yrs for a new build, this is using policy to address the main issue in your view which is a lack of supply.

Is that a good idea or is it just a matter of govt staying out of it and giving Mr market and the invisible hand, time to work it all out to everyones benefit.