Kāpiti-based MP rents back his Wellington flat at taxpayers’ expense

Monday, 10 June 2024

Tim Costley lives within commuting distance of Parliament.

A National MP is claiming a $36,400-a-year housing allowance for his own apartment — despite living just 58km from Parliament.

Ōtaki MP Tim Costley owns a $1.4 million riverside home in Waikanae, two rental properties in Palmerston North, and a Wellington flat.

He claims the taxpayer-funded perk for the capital property, where he stays during the weeks Parliament is sitting.

That’s entirely within the rules.

But National’s leader Christopher Luxon was forced into an embarrassing U-turn earlier this year when it emerged he was claiming $52,000 a year for his mortgage-free apartment in the city. As prime minister he was entitled to live at the official residence, Premier House, but chose not to.

Christopher Luxon and Tim Costley campaign together on the Kāpiti Coast.

At the time, Luxon said he was “entitled to the entitlement”, but later admitted the public backlash was “quite full-on”.

First-term MP Costley, a former air force pilot who served in Afghanistan, said: “Like many MPs I own an apartment in Wellington as is entirely within the rules agreed with the Speaker.

Costley campaigned for better transport services for Kāpiti Coast commuters.

“This works out at about the same as for MPs who stay in hotels. I believe the safest and most sustainable way for me to function as an MP is to stay in Wellington when the House is sitting.

“As a junior MP I am required to stay on precinct until at least 10pm and often there later and after midnight in urgency. I am required to be back at Parliament for early meetings starting between 7.30 and 8.30am.”

MPs are entitled to claim $36,400 a year if their main residence is “outside the Wellington commuting area”. But the rules don’t specify a minimum distance.

Costley owns a $1.4 million home in Waikanae, as well as two rental properties in Palmerston North and a Wellington flat.

Inland Revenue defines reasonable commuting distance as “between 50 kms and 80 kms for each leg of the journey or between 100 kms and 160 kms, taking both legs into account”.

Costley and his wife Emma bought the 310m2 family home in 2020. Situated on a leafy street on the banks of the Waikanae River, the five-bedroom property has extensive grounds and a swimming pool.

In 2007, then flight lieutenant Tim Costley went viral in a YouTube video.

During the morning and evening rush, trains run every 20 minutes to and from Wellington’s CBD and the journey takes roughly an hour. Driving would take between 45-60 minutes, depending on traffic.

Costley campaigned for better transport services for Kāpiti Coast commuters. He argued for improved train services between Palmerston North and Waikanae and said completing the the Ōtaki to north of Levin expressway was a priority.

In April, backbenchers’ salaries rose from $163,961 to $168,600, a 2.8% pay hike, backdated to last October.

First-term MP Costley has claimed $15,641 of the allowance, as well as $844 for out-of-Wellington accommodation and $14,959 in travel costs.

In October, The Post revealed at least 20 out-of-town MPs were claiming the perk to help pay off mortgages on their Wellington property.

That included Labour’s Duncan Webb, Jan Tinetti, Deborah Russell, Willie Jackson, Arena Williams and Jenny Salesa.

From National Andrew Bayly, Gerry Brownlee, Judith Collins, Barbara Kuriger, Melissa Lee, Mark Mitchell, Stuart Smith and Louise Upston all claimed, alongside ACT’s Simon Court.