Buying guide
Interest deductibility on rental property explained
The laws are changing so we’ve got up to date answers to make life easier.
AI summary
The National-led government is reintroducing interest deductibility for rental properties, reversing the previous phase-out. Landlords can claim a growing percentage of mortgage interest as an expense against their rental income.
The phase-in schedule is:
- 2023/24: 60% deductible
- 2024/25: 80% deductible
- 2025/26: 100% deductible
Additionally, the bright-line test has been shortened to two years. Landlords should consult a tax professional to navigate these changes and ensure compliance.
But first, what is interest deductibility on rental property?
Current rules — what's deductible now?
There are tax advantages to owning a new build property.
Other changes for investors to note
Should I be doing anything now?
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