Edmonds BarbaraBARBARA EDMONDS (Labour—Mana): Thank you Mr Speaker. At this time I just want to quickly pay tribute to a number of our Labour family who have lost really important people over the last 24 hours particularly to our member the Hon Willie Jackson. Haere haere haere atu rā to his mother. It's always a privilege for me to speak on a tax bill. I've spent over a decade of my professional career in the area that is tax law or tax policy and I fully appreciate the work and effort that has gone into making these omnibus tax bills. So I once again thank the work of the IRD officials the Finance and Expenditure Committee team independent adviser Therese Turner and the Minister. I appreciate the considered submissions provided by submitters not just on the bill itself but also as part of the generic tax policy process. As set out in the regulatory impact assessment consultation was undertaken on some of the measures within this bill and helped to inform what has become the bill itself. I especially want to acknowledge a number of the tax practitioners who submitted as their technical feedback ensures that the draft legislation is cohesive and identifies any unintended consequences. It's not unusual to have two to three tax bills per year because tax policy evolves quickly to cater for changes in technology to cover fiscal or integrity risks and as the deputy commissioner of IRD Robin Oliver once said to keep the lights on. So here we have that in the title: the remedial matters" bill. The Minister in a number of his speeches talked about why maintaining the tax system at this time is a crucial function but particularly at this critical time for the health of our people and the economy it is absolutely vital. Although New Zealand has relatively strong tax settings it is important to maintain the tax system and ensure that it continues to be fit for purpose. This also means again that it adapts to changes in business practices so that compliance costs are kept at a minimum. I just want to talk briefly on a matter that our chair Dr Duncan Webb touched on which is New Zealand does have a progressive tax system and security guards cleaners our bus drivers are hard-working people. To reiterate what he said around the OECD and the IMF: that now is not the time for tax cuts—now is not the time. If you want to be able to increase income for those lower paid workers you do it directly through tax transfers. That's how tax policy has a lot of the time been made in New Zealand. That's why we have Working for Families. That's why we have the winter energy payment and that's why we've lifted the minimum wage. I just want to touch briefly on probably the biggest policy item which is in this bill which is the interest deductibility rules. The IMF also said that some of the domestic risks in New Zealand are centred around financial stability particularly in relation to the housing market. We know that tax is not the cause of this problem but it does contribute to the problem. So it's our Government's goal to level the playing field for existing homes in favour of first-home buyers and those moving to new homes compared to those investing in residential property. So investors can generally outbid first-home buyers and we want to make sure that residential properties are less attractive for investors while stimulating new investment in housing. That's why the deductions for interest expenses of residential properties will be restricted from 1 October 2021. We've tried to make sure that transitioning is possible within the bill by ensuring that the policy will be phased in so that interest deductions on a mortgage on a residential investment property acquired before 27 March 2021 will progressively be reduced between 1 October 2021 and 31 March 2025.We are removing interest deductions as a business expense for residential investment properties but allowing deductions for property developers or people purchasing a newly built residential property. Once again this goes to around financial stability in trying to apply for supply because we know again that tax is not the cause of the problem but it does contribute. So we want to ensure that the playing field is even for those who are bringing in new supply.So once again a real privilege for me to be able to stand to speak briefly on this bill. I really again thank our officials and thank our Ministers for bringing it to the House and I'd like to commend this bill to the House."