More than 20 MPs rent back their own homes at the taxpayer’s expense

Wednesday, 11 October 2023

National Party leader Christopher Luxon is one of the MPs who claims the housing entitlement.

At least 20 MPs are claiming up to $45,000 a year allowance to stay in their own Wellington homes, a perk that sees the taxpayer help politicians pay off their mortgages.

Four ministers (Duncan Webb, Jan Tinetti, Deborah Russell and Willie Jackson) claimed the capped allowance, of up to $45,000 a year, to cover living costs in the city. They then use it to pay rent on property they already own.

Four Government MPs (Arena Williams, Jenny Salesa, Jamie Strange and Sarah Pallet) claim an entitlement of up to $31,000 per year.

Twelve National Party MPs, including leader Christopher Luxon, do the same. They are: Andrew Bayly; Gerry Brownlee; Judith Collins; Jacqui Dean; Barbara Kuriger; Melissa Lee; Ian McKelvie; Mark Mitchell; Simon O’Connor; Stuart Smith; Louise Upston and Michael Woodhouse.

ACT’s Simon Court also claims the allowance and owns property in the Capital, but the party did not respond to a request for comment.

No current Green Party or Te Pāti Māori MPs from outside of Wellington listed a property on their pecuniary interest register.

Statistics Minister Deborah Russell. She bought her Wellington apartment in 2004, prior to being an MP.

The arrangements are entirely within Parliament’s rules. And neither Labour nor National have plans to change them. In fact, MPs may soon be in line for a boost to their pay and perks.

The Remuneration Authority, the independent body which sets the rates, is required to review politicians’ pay within three months of the official outcome of Saturday’s general election.

This may sit uncomfortably with voters in a dual cost of living and housing crisis. MPs will benefit when they sell the property, with the profits largely untaxed, depending on when they bought it.

MPs from outside the Wellington region are allowed to claim a capped accommodation allowance to cover their living costs in the city – and 21 MPs claim the perk for their own property.

If elected, National plans to return the bright-line test to two years, down from the current 10 years, by next July. All of the MPs’ property was bought before 2022, meaning they would benefit from the policy tweak.

Dean, Woodhouse and McKelvie are all retiring at the election.

Both Dean and Luxon have also purchased offices which they lease back to Parliament for use as an electorate base. Again, this is within the rules.

A spokesperson for the Labour Party said: “The current rules are agreed by MPs from across Parliament. MPs’ entitlements are periodically reviewed. A further review is for a new Parliament to consider.”

National’s spokesperson said: “MPs from outside Wellington have long had the option of purchasing accommodation in the capital and many have done so.

“We are confident all National MPs are complying with the rules and will continue to do so.”

Politicians are generously compensated for their work, although they are expected to keep long hours – and pay has been frozen for six years.

The prime minister gets $471,049 a year, Cabinet ministers earn $296,007, and the leader of the Opposition gets $296,007. Backbenchers net $163,961 a year, but can get extra if they take on whip duties or chair select committees.

MPs also get a contribution to their superannuation equal to up to 20% of their salary, paid on a ratio of $2.50 for every $1 contributed.