Yes, but policy works on averages with WINZ having options for people that get unexpected outcomes. (Accomodation supplements; one off major expense payments, etc).
Someone could get a median pay based increase of $15pw, instead of inflation based $12pw and still get a $50pw rent increase which the neighbour next door doesn’t get.
That’s life under Labours out of control rental market.
People forget that actions by governments have unexpected consequences (or consequences that are expected but can then be weaponised against a group).
Take the ability for SOME landlords to lose their ability to claim back the expense of interest deductions. The previous government was warned in a Treasury paper that doing so would lead to a rise in rents as landlords with mortgages tried to recover that money.
The argument for removing the ability was that is gave landlords an unfair advantage over owner occupiers as they aren't able to claim interest of the mortgages of their tax bills. It completely ignores the fact that landlords are able to still claim back other expenses owner occupiers can't such as insurance, rates, bulk water charges, some repairs.
It also doesn't take into account that this policy doesn't effect all landlords the same. Mum and Dad investors just starting out with a $900,000 rental property with no deposit (they're using equity in their own house as the deposit) with an interest rate of 7% are paying $71,630 PA in mortgage payments. In that first year, they have only paid back just over $9,125 in principal repayments meaning they paid over $62,500 in interest - that's an expense of just over $20,600 they can't deduct.
The neigbouring property was brought by another Mum and Dad investors six years ago for $650,000 again with no deposit and now has a balance of $602,500 owed to the bank. Again, at the 7% interest rate, their mortgage payments are $51,740 PA. In the next financial year, they will pay back just over $10,030 in principal repayments meaning the interest they will pay will be just over $41,700 - that's an expense of $13,750 they can't deduct.
Yet, if both landlords are charging the same rent, one is being effected much more than the other. And a landlord without a mortgage on a rental property has not been affected at all (because there never was any interest to deduct in the first place).
It's also ironic that charities with emergency housing say that rents are too high and that investors should follow their example by having lower rents..... of course they can afford to have lower rents because, unlike private landlords, they don't pay tax!!!
And, it's gotten weaponised in that landlords have been portraited as greedy by increasing their rents.... even though, rises in rent was a predicted outcome/consequence of this policy!!!
Perhaps a better way, if it is even required, to make things "fairer" for owner occupiers and FHB's over landlords would have been not to remove the ability to claim back mortgage interest but to have made it more universal and stopped landlords from being able to claim back rates and insurance.