New Zealand Planning Exemption from Interest Limitation Rules to Boost Long-Term Rental Supply

The New Zealand Government has announced proposed tax incentives to boost the supply of long-term rental property, which includes a new exemption from the interest limitation rules for developers on qualifying build-to-rent properties. The interest limitation rules were introduced by the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 to reduce investor demand for residential property. The rules essentially disallow the deduction of interest incurred on borrowings use…