MPs to lose out if tax breaks on property cut

Many MPs are likely to be hit by measures in the Budget tomorrow to reduce tax breaks on rental properties - some own up to a dozen properties.

The latest Register of Pecuniary Interests, which asks MPs to list their holdings in property, companies, trusts and other entities, shows several MPs listing rental or investment properties.

The Budget is expected to have some form of property tax to try to turn investment incentives away from property towards more meaningful ways to increase productivity.

The number of MPs with revenue from rental properties is certain to be higher, as MPs are not required to categorise what type of properties they have.

Several MPs simply listed under a generic "property" label, such as Labour's Mita Ririnui, who had six properties in Tauranga and one in Maketu.

Napier MP Chris Tremain, whose family has been in the real estate business since 1970, listed a family home, a family bach, three blocks of land, eight residential or apartment investment properties and six commercial investment properties.

He had had eight rental properties - residential and commercial - and was a beneficiary to other properties through a family trust.

He expected his revenue from rental properties to take a hit following measures in the Budget, but did not object to this.

"I genuinely believe that we need to tip the scales in the economy in favour of the productive sector. For too long we have had a focus on residential investment properties as a key means of growing our wealth, and that is not the way to improve productivity and grow exports and increase the wealth of the country.

"If that means I will be paying a bit more tax than I was before, so be it."

Mr Tremain, who is still a director of Tremain Real Estate, said he used all the tools in the trade to maximise his rental revenue stream. He declined to say how much that stream was worth.

"Any landlord would use the current tax law, which allows you to claim depreciation, and one does that."

Finance Minister Bill English said yesterday high-income earners should expect the extra cash from tax cuts to be offset by reducing tax breaks on rental property.

Among National MPs who had several properties, Gerry Brownlee listed six in Christchurch and Marlborough, Aaron Gilmore listed six around the country, and Paul Hutchison has a hand or part hand in eight properties.

MPS reveal gifts

MPs have disclosed gifts they received in the past year. Prime Minister John Key listed 15 gifts including a bronze statue of a horse, a silver photo frame, glass urns and a rare ham - all from the King and Queen of Spain.

He also received a pewter vase from the Malaysian Prime Minister, a shirt and tie from Nicholas Jermyn Shirtmakers, and a trinket box made of 5000-year-old red gum.

Mr English was gifted a helicopter ride by Hills Golf Club, in Central Otago. Defence Minister Wayne Mapp listed a brass plate, two Afghan rugs, a glass goblet and a model of a Chinese pavilion from his overseas trips.

MPs who listed rental properties:
Carol Beaumont (L)
Nanaia Mahuta (L)
Damien O'Connor (L)
Jonathan Coleman (N)
Paul Quinn (N)
Katrina Shanks (N)
Louise Upston (N)
Kennedy Graham (G)

MPs who listed investment properties:
Raymond Huo (L)
David Parker (L)
Chris Tremain (N)

Other MPs who listed more than three properties:
Amy Adams (N)
Gerry Brownlee (N)
Cam Calder (N)
David Carter (N)
Aaron Gilmore (N)
Sandra Goudie (N)
Tim Groser (N)
Kevin Hague (G)
Phil Heatley (N)
Paul Hutchison (N)
Shane Jones (L)
John Key (N)
Winnie Laban (L)
Hekia Parata (N)
Georgina te Huehue (N)
Lindsay Tisch (N)
Anne Tolley (N)
Nicky Wagner (N)