PHOTO: Christopher Luxon. FILE
Prime Minister Christopher Luxon is set to make nearly $200,000 tax-free from the sale of his Wellington apartment this month, 1News reports.
This follows the sale of another property in Auckland’s Onehunga for a $280,000 profit at the start of September, bringing his projected untaxed income close to half a million dollars within recent weeks. Both sales are awaiting final settlement.
These property transactions have sparked criticism from Labour, who argue that Luxon is in a “conflicted position” and should be open to discussing a “more progressive tax policy.”
The Prime Minister’s office confirmed that Luxon has moved into Premier House following the completion of refurbishments. Premier House, valued at $37 million, is the official residence for prime ministers, paid for by taxpayers and managed by the Department of Internal Affairs. The property requires significant long-term maintenance and is primarily used for official engagements, with the prime minister residing in a smaller apartment on the upper floors.
Earlier this year, Luxon faced heavy criticism after it was revealed he was collecting a $52,000 annual accommodation allowance to live in his mortgage-free Wellington apartment. Initially defending his right to the allowance, he later stopped claiming it and repaid $13,000, calling the backlash “quite full-on.”
Records show Luxon sold the apartment, located across from Parliament in the Kate Sheppard complex, on September 9 for $975,000, having bought it for $795,000 in 2020, yielding a capital gain of $180,000.
Similarly, his Grey St, Onehunga property sold for $930,000 after being purchased for $650,000 in 2015, giving a $280,000 profit, though settlement is still pending.
Asked if he believed he should have paid tax on these sales, Luxon responded, “No, we don’t have capital gains tax in New Zealand,” adding that taxing wealth would be counterproductive for the country’s economic recovery.
What does this tell the market? NZ Prime Minister is selling his investment property
Labour’s deputy leader, Carmel Sepuloni, said Luxon should recognize the conflict and be willing to discuss more progressive tax policies, citing a “general sense of entitlement” and his reluctance to engage in conversations about a fairer tax system. She noted that previous prime ministers, including Jacinda Ardern, lived at Premier House despite its need for repairs.
Luxon has dismissed such criticism, maintaining his opposition to capital gains tax or wealth tax, emphasizing that he believes wealth creation should not be discouraged.
Real estate agent John Kettle noted that Luxon’s Wellington apartment had been tastefully renovated and was likely to have fetched a good price. He added that the capital gain from the sale was “fair game” and didn’t reflect greed.
SOURCE: 1NEWS