Prime Minister Luxon claims $52k payment from taxpayers to live in his own property

The prime minister will be granted an additional $52,000 on top of his $471,000 salary to cover accommodation expenses, as he is not residing in Premier House.

Christopher Luxon‘s spokesperson confirmed that he will opt to receive the accommodation payment, despite living in his own mortgage-free apartment in Wellington.

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This decision marks Luxon as the first prime minister in over three decades to claim this allowance. Since Premier House became the official residence in 1990, previous prime ministers either lived there or, like Bill English and Chris Hipkins, stayed in their personal residences.

Reports surfaced on Tuesday suggesting Luxon had cited the condition of Premier House as the reason for not living there when speaking to Australian cricket players. However, Luxon disputed using the terms “condemned” or “unlivable,” stating that while there are longstanding maintenance issues, the specifics need to be addressed by the government.

Although Premier House underwent upgrades in 2018 costing $3 million, it has been acknowledged by past prime ministers as needing further substantial work.

Luxon, prior to becoming prime minister, received a yearly housing allowance of $31,000 from Parliament, along with other MPs who owned properties in Wellington. However, unlike some of those MPs who were still paying mortgages, Luxon owns his Wellington property outright.

There has been previous scrutiny on MPs claiming such allowances when seemingly not in need. While English repaid the allowance he claimed as a minister in 2009, Luxon, as prime minister, is now eligible for up to $52,000 annually under the same scheme.

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The apartment Luxon owns in Wellington, valued at over $1 million in 2021, is without a mortgage. He also owns properties in Auckland and Waiheke Island.

Ministerial expense returns from the final quarter of 2023 did not initially show Luxon claiming the accommodation expense, attributed to a late filing. However, his spokesperson clarified that Luxon has since claimed the allowance, which will be reflected in future releases.

Luxon campaigned on fiscal responsibility and maximizing taxpayer value. Finance Minister Nicola Willis has urged all public sector departments to seek savings of 6.5 percent.

In addition to Luxon, other MPs who claimed the accommodation supplement last year while owning property in Wellington include Andrew Bayly, Gerry Brownlee, Judith Collins, Simon Court, Barbara Kuriger, Melissa Lee, Mark Mitchell, Deborah Russell, Jenny Salesa, Stuart Smith, Jan Tinetti, Louise Upston, Arena Williams, and Duncan Webb. Some may have mortgages on their Wellington properties.