PM can’t calculate GST

Written By: - Date published: 7:24 am, March 18th, 2015 - 66 comments
Categories: gst, john key, uncategorized - Tags: , ,

3 News had a piece last night on the possible eventual charging of GST on online / international purchases. Interesting topic, worthy of debate. John Key was quoted as saying it was “inevitable”. Then he managed to completely put his foot in it:

“If you think about iTunes, if you download a song and it’s $1.29, there’s no reason the GST shouldn’t apply to that. In reality, GST would be 2 cents.”

(See 1:40 in the video.) Our financial genius PM is out by a factor of 10, the correct amount is a shade over 19 cents. That’s a monumental self-inflicted “gotcha” headline – “PM can’t calculate GST”. A Labour or Green leader who made such a mistake would be all over the news…

66 comments on “PM can’t calculate GST ”

  1. b waghorn 1

    key must of had his dunces hat on instead of his money counters hat.

  2. Tracey 2

    will he be relentlessly mocked as the greens leadership contenders were for not knowing the inflation amount etc. afterall his party have sold him as an expert on matters economic…

    • felix 2.1

      Exactly, the opposition can hammer this as much as they like but it doesn’t count for much unless the media pick it up and treat it like they did the Green gaffes.

      • Tracey 2.1.1

        at least Brook Sabin tweeted. I didn’t watch any news last night so don’t know if it headlined or not… It wasn’t on TV3 news this morning.

        • Ergo Robertina 2.1.1.1

          Key’s mistake was prominent on 3 last night – in the tenor of the tweets.
          It was part of their GST story – I think they even led on it; it was certainly top one or two story.

          • Tracey 2.1.1.1.1

            Thanks for that ER.

            Anyone know if TV1 ran it and how?

            • Crashcart 2.1.1.1.1.1

              TV 1 did note that he had got the number wrong adn by how much but it was a quick tack on at the end of the article.

              • Tracey

                thanks. do you know if tv1 made an item of leadership conteners for greens not knowing economic stuff?

                • Crashcart

                  Sorry I was away for part of that and am spotty in watching the news at best (kids bed time and all) so I missed anythign about it. Doesn’t mean it wasn’t there.

  3. miravox 3

    He’s been out of the numbers game to long. Must be mortifying for him.

    Time to give up this PM gig and back to the money trading for a refresher.

    • Tracey 3.1

      shows you how important numbers really are to making money in currency trading 😉

      • McFlock 3.1.1

        I’m sure even in the 1980s it was a case of “computer says buy”

        • Murray Rawshark 3.1.1.1

          From memory, it was in the 80s that people began developing econometrics and econophysics to analyse the mass of data from the stock market. Much of what later happened was based on computer simulations of unrealistic models. Some people made huge amounts of money for a short time, but it went badly wrong. This could explain the rubbish right wingers spout about climate modelling.

          A maybe interesting anecdote is that Eugene Stanley, who first used the term econophysics, almost got himself robbed while drunkenly dancing with young women in the street in Salvador, Brazil. My wife intervened and saved the day.

  4. peterh 4

    I think it was tv1 news, also, it was a double wammy as I tunes are paid by I tune cards that have already had gst paid when brought, what has fishi got to say about this joke of the week, bet you don’t hear from him

    • Hayden 4.1

      And according to Apple’s Terms and Conditions GST is already applied, assuming they deem it “payable”, presumably.

      Services Transactions may be subject to GST. If GST is payable, the amount deducted from your credit card, iTunes Card, iTunes Store Gift Certificate, or Allowance Account balance (as the case may be) at the time of purchase will include applicable GST. All sales and rentals of products are final.

      • Lanthanide 4.1.1

        So do the songs actually cost $1.29, or is it $1.29 + GST?

        If the $1.29 includes GST, then the GST component is actually 16c and Brook Sabin is also wrong.

        • Tracey 4.1.1.1

          but isn’t an economic whizz bringing to bear all his economic magicalness to the PM-ship.

        • Hayden 4.1.1.2

          I would assume (I don’t use it) that they are $1.29 including GST. In that case though, Brook Sabin is correct in as much as the GST on $1.29 is about 19c, although he doesn’t appear (and nor do many in the media) to know that Apple already charge GST (if indeed they do). It would be interesting if someone got around to asking Apple about this, although they appear to have been unwittingly dragged into it by the PM.

          I would like to see Key arguing that he was only out by a factor of 8 rather than nearly 10 though.

          Maybe he could do a srylands and claim it’s the sales tax “where I live”. What’s the sales tax rate in Hawaii?

          • Lanthanide 4.1.1.2.1

            No, for something that is $1.29 including GST, the GST component is 16.8c, not 19c.

            $1.29 / 1.15 = $1.12
            $1.29 – $1.12 = 17c

            Without rounding it’s 16.8c, not 16c as I said above. Still, closer than Brook Sabin.

          • ghostwhowalksnz 4.1.1.2.2

            The gst is not paid when you do a completly online transaction.

            Download the itunes app, set it up for in app purchase on your credit card, as its technically buying through an offshore intermediary ( and below the $400 limit) no gst.

        • Hanswurst 4.1.1.3

          Sabin is right, no matter what the actual case is. Key referred to a song costing $1.29, and there being no reason why GST should not apply to that. From Key’s statement, “that” is the song that costs $1.29, and therefore applying GST to “that” means $1.29 + GST. If he had intended it to mean $1.29 including GST, he would have had to have worded it differently. You can’t blame Sabin for calling Key out on exactly what he said.

        • Murray Simmonds 4.1.1.4

          Lanthanide:

          Since when did offshore companies start charging GST?

          Or do you, in your usual myopic way, believe that itunes is a NZ-based company?

          Perhaps your game, really, is simply to mislead?

          In which case you are definitely in the right party for that!

          • Lanthanide 4.1.1.4.1

            I love it when people accuse me of being a rightie.

            Perhaps you should try and read the comment I replied to, which is #4.1 by Hayden. Then read my comment.

            When you have the context for what I said, you might understand it.

      • ghostwhowalksnz 4.1.2

        If its done by a pre purchase card its likely to include gst, if its an in app purchase by your credit card you are technically buying it offshore so they escape gst

    • Tracey 4.2

      Good point indeed. Bad example all round. I bought my last i-tunes card from warehouse so deffo paid GST

      • alwyn 4.2.1

        If Hayden’s comment at 4.1 is correct then you haven’t paid any GST at all when you buy the card. You have merely transferred money from you bank account, or wallet or whatever into a form of money that you can spend to buy tunes.
        If they have to charge GST on the goods you finally buy they will debit your card with the amount of the GST due.
        It is just like taking cash out of your bank account. You don’t pay any GST on the value of the money you withdraw.. You only pay it if you spend the money on something on which GST is payable.

        • Tracey 4.2.1.1

          You sure? I buy an itunes card at Warehouse, Warehouse doesn’t have to pay GST on our transaction? I didn’t know that. So how does Warehouse make money selling it to me? Apple pays them a commission?

          • Lanthanide 4.2.1.1.1

            Easy way to work it out. Most receipts will show the amount of GST charged on the purchase. Work out if the GST is been charged on the card or not.

            If you buy a $10 card and get $10 credit in iTunes, and $1.30 of it was GST, then anything you buy with the $10 credit would have effectively paid GST.

            • alwyn 4.2.1.1.1.1

              Tracey.
              According to the Apple ITunes agreement the card itself is valued at 0.1 cents. I suppose they are going to pay the GST on that value.

              “The Gift Certificate/iTunes Card/Code cash value is 1/10 of one cent.”

              If the things that you buy are liable for GST then they are going to bill it to your account at the time you purchase the service. That is when you choose a tune. Note that they don’t distinguish between an iTune card and your credit card.

              “Services Transactions may be subject to GST. If GST is payable, the amount deducted from your credit card, iTunes Card, iTunes Store Gift Certificate, or Allowance Account balance (as the case may be) at the time of purchase will include applicable GST.”

              I imagine that the way The Warehouse makes money is that Apple supply them with $1,000 of face value of the cards for say $900. Then they can make a profit by selling at the face value. Note I only say “I imagine”. I don’t actually know what they do.
              Did you know that the Post Office sell stamps to dealers at a discount and you can, or could, get the dealers to sell them to you at a discount of say 10% from face value?

              Lanthanide comments that a receipt will list the GST. They used to, almost universally but for many consumer things they no longer do so. A petrol station’s receipt will list it but a supermarket bill, at least from New World, doesn’t.

              • Lanthanide

                Countdown receipt in front of me has the GST total listed. Mitre 10 mega receipt doesn’t. Can’t find my last Warehouse receipt, but when I was there 9 years ago they explicitly listed next to each item whether it had 15% GST charged or not; not sure if they still do that.

                • alwyn

                  I am being picky, and very much tongue in cheek, but I hope you complained to The Warehouse. Nine years ago the rate was 12.5%.
                  I found a Mitre 10 receipt which does not list GST. I am surprised they don’t have a common point-of-sale system.

    • ghostwhowalksnz 4.3

      Its only talking about online only, buying a card is so 1990s.

      Its normally done by a credit card in the setup to become an ‘in app’ purchase

  5. peterh 5

    Cards are inclusive of gst sometimes they are discounted, so they are not always $1 29 each song so the tax take would be less than 2 cents each song, honest John was not on song with this

  6. Craig Glen Eden 6

    It should be remembered this PMs figures are done on the back of a napkin. Who needs financial accuracy when you can spin bullshit knowing full well he is never really held to account for anything he does say’s or is responsible for. This is the PM who his team have spent years creating the Im just like the average Kiwi bloke persona and they have done that so he can make shit up and pass it off as I was just being casual bro!.

  7. her 7

    So illegal downloading will be tax evasion.

    • ghostwhowalksnz 7.1

      if no money changes hands there is no gst payable!

      • Lanthanide 7.1.1

        If things are sold at less than their true retail value for the purpose of minimising GST, it is tax evasion.

        Difficult to see how how it would really work for ‘illegal’ downloads though: stealing something from a shop is shop-lifting, not tax evasion.

        • freedom 7.1.1.1

          I forget, how many zeros have to be involved before it becomes what the PM calls “legitimate tax avoidance” 😉

  8. shorts 8

    I’m sure iTunes doesn’t charge NZ’ers GST – Australians yes… because iTunes is registered and operating in Australia so subject to their GST regime, not ours

    Saying that this whole GST thing is becoming a annual news item… stirs up stories and then dies as IRD and Customs inform their masters (again) that their systems can’t cope with the proposals… offshore sellers such as Amazon say F off NZ, we’re not doing your bidding, we’d rather deny all sales to your country than bother with your tax issues etc (we are not that big nor imprtant – as many sellers won’t even ship here) blah blah blah

  9. Chch_Chiquita 9

    What I don’t understand is how is it going to be enforced. Shouldn’t a company be registered in NZ in order to pay the GST it is collecting, if it is indeed collecting? And if the cards are indeed GST inclusive then isn’t charging GST on the purchase of the songs a double up?

    • ghostwhowalksnz 9.1

      No. For items that arrive like that the buyer is responsible for paying GST.
      At the higher end of the scale, eg for imported used cars, the GST is payable based on the cost overseas plus shipping and is paid by the importer before its released to tthem.

      I dont know about the cards, but its generally talking about online only transactions

      • Chch_Chiquita 9.1.1

        I know the rules about GST when importing goods that physically arrive here, but pure online transactions are not subject to GST and I don’t see how you can force Apple, Google etc to charge it.
        To me it sounds like another idea not thought through and the systems to enforce it will be so expansive it will not be worth it.

        • alwyn 9.1.1.1

          The “so expansive it will not be worth it” is the reason that things up to $400 were exempt.

          Could Apple do it? I think that they do it for items sold in The United States where the states charge sales tax at different rates, so I don’t see why they couldn’t do it here.
          Why would it apply to Google? I wasn’t aware they sold goods in this way.

          I wouldn’t personally care about paying it. The only things I buy from overseas via the Internet are books and DVDs. I do it because the shops in New Zealand don’t stock them and won’t order them.

          • infused 9.1.1.1.1

            You’d just use a VPN or change your country to the US then… cheaper. It’s already done through Steam to take advantage of regional pricing.

            People aren’t stupid these days.

            • alwyn 9.1.1.1.1.1

              Yes, of course.
              I was really only reflecting my own experience which, as I noted, was only buying goods that are actually delivered by snail-mail.
              The subject is of course much wider and as Key was talking about is the purely electronic delivery that Apple does.

  10. adam 10

    Here me thinking Key was being honest for once in his career. Of course the rich never pay the full amount of G.S.T – for them, less than 2% – sounds about right.

  11. David 11

    Epic fail for sure, however what about the fact that the stated reason for applying GST to these exempt on-line purchases is to level the playing field for our domestic retailers. This will mean the cheer leaders of the FREE market are happy to make it less free and assist our poor retailers when it increases their revenue intake. How is any market free when inflation and interest rates are artifically controlled anyway?

  12. ianmac 12

    By the way did you notice that Mr Key in mocking the Green candidates lack of knowledge of those other stats, had to read the stats in case he made a mistake. And my guess is that if you asked any MP for the figures very few would have them at the ready.
    And Key’s error in GST is just relevant because of his mocking of the Greens. Irony?

  13. alwyn 13

    I would think that the majority of the MPs, or at least those in their second or later terms, would know the inflation rate and the OCR exactly. Both of them have been discussed at interminable length in Parliament lately.
    The unemployment rate and the GDP growth are a little bit harder but to be as far out as Hague was is ridiculous. He gave 0.25% when it is 2.9%. That is letting his political bias blind him.
    Shaw’s estimate of 5% is the only one of their guesses that is even remotely acceptable from an MP who hopes to lead the third biggest party in Parliament. I’ll bet Norman was holding his head while he cried at their stupidity.

    • Hayden 13.1

      Would you also think the PM (in his third term, as it happens) would know the rate of GST? And how to apply it (at least roughly)?

      • alwyn 13.1.1

        I’m sure he knows the rate. He simply made an error in a simple calculation. His error is just like the one Meteria made in Parliament, except that she made the mistake by missing out some words in the question she was asking. Key made fun of her there at the time, just as people here, and probably in Parliament, will make fun of him about the GST.
        The Green Party candidates were given plenty of time for their answers and Hughes was even offered a second chance. They simply didn’t know. It wasn’t that they made a simple slip.

        • Murray Rawshark 13.1.1.1

          They simply didn’t know. It wasn’t that they lied and obfuscated like FJK does with every question he’s asked. FIFY.

          • alwyn 13.1.1.1.1

            If it was simply a case of “They didn’t know” they should say that and then shut up. Only Hague came even close to that but then he gave a wildly silly figure that merely illustrated his political prejudice. The rest merely illustrated the truth of that old saw that “It is better to remain silent and be thought a fool than to speak out and remove all doubt”.

            Hughes of course confidently gave a silly number. I thought he was equally funny a minute or so later when he happily spouted some rubbish about the Reserve Banks available “Macro-Prudential” tools. I wonder in which comic he had read that bit of jargon? It is a shame he clearly doesn’t know what he is talking about.

            • Murray Rawshark 13.1.1.1.1.1

              The big difference is that they accepted they didn’t know. Key would have bullshitted and said that the published figures were not the actual ones, or that Treasury worked them out differently, or something equally ludicrous. Then he would have told us how comfortable he was and said that ordary Nuzildas didn’t worry about whether he told the truth or not. In your case, he’d be right.

  14. David H 14

    But don’t forget that Billy boy still hasn’t got to his much Vaunted surplus yet, so they need all of the Grab Snatch & Take they can get.

    And now the price of Milk Solids has dropped approx 10%. So there’s another dent in Billy boy’s books.

  15. Kevin Welsh 15

    At least we now know that when asked for his ‘2 cents worth’ on any topic, he knows SFA.

  16. infused 16

    Well you all stuck up for Metiria when she fucked up her calculations, so what’s the problem?

    • weka 16.1

      Do you,

      1. really believe that Turei thinks 90% of NZ children don’t have lunch at school?

      or

      2. think your misleading slur has any meaning here?

      Either way, you’re an idiot.

      • infused 16.1.1

        Well obviously she did. She read it out.

        Do you think I give a shit about your insult? Try harder idiot.

        • weka 16.1.1.1

          No, she didn’t. Why are you lying? And why do you believe that Turei thinks 90% of NZ children don’t have lunch at school? That’s just stupid.

          I have no idea whether you give a shit about being insulted, but let’s see how long you put up with having your stupidity laid out for people to see.

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    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    2 days ago
  • Bring out your Dad
    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    2 days ago
  • The bewildering world of Chris Luxon – Guns for all, not no lunch for kids
    .“$10 and a target that bleeds” - Bleeding Targets for Under $10!.Thanks for reading Frankly Speaking ! Subscribe for free to receive new posts and support my work.This government appears hell-bent on either scrapping life-saving legislation or reintroducing things that - frustrated critics insist - will be dangerous and likely ...
    Frankly SpeakingBy Frank Macskasy
    3 days ago
  • Expert Opinion: Ageing Boomers, Laurie & Les, Talk Politics.
    “It hardly strikes me as fair to criticise a government for doing exactly what it said it was going to do. For actually keeping its promises.”THUNDER WAS PLAYING TAG with lightning flashes amongst the distant peaks. Its rolling cadences interrupted by the here-I-come-here-I-go Doppler effect of the occasional passing car. ...
    3 days ago
  • Manufacturing The Truth.
    Subversive & Disruptive Technologies: Just as happened with that other great regulator of the masses, the Medieval Church, the advent of a new and hard-to-control technology â€“ the Internet –  is weakening the ties that bind. Then, and now, those who enjoy a monopoly on the dissemination of lies, cannot and will ...
    3 days ago
  • A Powerful Sensation of DĂŠjĂ  Vu.
    Been Here Before: To find the precedents for what this Coalition Government is proposing, it is necessary to return to the “glory days” of Muldoonism.THE COALITION GOVERNMENT has celebrated its first 100 days in office by checking-off the last of its listed commitments. It remains, however, an angry government. It ...
    3 days ago
  • Can you guess where world attention is focussed (according to Greenpeace)? It’s focussed on an EPA...
    Bob Edlin writes –  And what is the world watching today…? The email newsletter from Associated Press which landed in our mailbox early this morning advised: In the news today: The father of a school shooter has been found guilty of involuntary manslaughter; prosecutors in Trump’s hush-money case ...
    Point of OrderBy Bob Edlin
    3 days ago
  • Further integrity problems for the Greens in suspending MP Darleen Tana
    Bryce Edwards writes – Is another Green MP on their way out? And are the Greens severely tarnished by another integrity scandal? For the second time in three months, the Green Party has secretly suspended an MP over integrity issues. Mystery is surrounding the party’s decision to ...
    Point of OrderBy poonzteam5443
    3 days ago
  • Jacqui Van Der Kaay: Greens’ transparency missing in action
    For the last few years, the Green Party has been the party that has managed to avoid the plague of multiple scandals that have beleaguered other political parties. It appears that their luck has run out with a second scandal which, unfortunately for them, coincided with Golraz Ghahraman, the focus ...
    Democracy ProjectBy bryce.edwards
    3 days ago
  • Bernard’s Dawn Chorus with six newsey things at 6:46am for Saturday, March 16
    TL;DR: The six newsey things that stood out to me as of 6:46am on Saturday, March 16.Andy Foster has accidentally allowed a Labour/Green amendment to cut road user chargers for plug-in hybrid vehicles, which the Government might accept; NZ Herald Thomas Coughlan Simeon Brown has rejected a plea from Westport ...
    The KakaBy Bernard Hickey
    3 days ago
  • How Did FTX Crash?
    What seemed a booming success a couple of years ago has collapsed into fraud convictions.I looked at the crash of FTX (short for ‘Futures Exchange’) in November 2022 to see whether it would impact on the financial system as a whole. Fortunately there was barely a ripple, probably because it ...
    PunditBy Brian Easton
    4 days ago
  • Elections in Russia and Ukraine
    Anybody following the situation in Ukraine and Russia would probably have been amused by a recent Tweet on X NATO seems to be putting in an awful lot of effort to influence what is, at least according to them, a sham election in an autocracy.When do the Ukrainians go to ...
    4 days ago
  • Bernard’s six stack of substacks at 6pm on March 15
    TL;DR: Shaun Baker on Wynyard Quarter's transformation. Magdalene Taylor on the problem with smart phones. How private equity are now all over reinsurance. Dylan Cleaver on rugby and CTE. Emily Atkin on ‘Big Meat’ looking like ‘Big Oil’.Bernard’s six-stack of substacks at 6pm on March 15Photo by Jeppe Hove Jensen ...
    The KakaBy Bernard Hickey
    4 days ago
  • Buzz from the Beehive Finance Minister Nicola Willis had plenty to say when addressing the Auckland Business Chamber on the economic growth that (she tells us) is flagging more than we thought. But the government intends to put new life into it:  We want our country to be a ...
    Point of OrderBy Bob Edlin
    4 days ago
  • National’s clean car tax advances
    The Transport and Infrastructure Committee has reported back on the Road User Charges (Light Electric RUC Vehicles) Amendment Bill, basicly rubberstamping it. While there was widespread support among submitters for the principle that EV and PHEV drivers should pay their fair share for the roads, they also overwhelmingly disagreed with ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Government funding bailouts
    Peter Dunne writes – This week’s government bailout – the fifth in the last eighteen months – of the financially troubled Ruapehu Alpine Lifts company would have pleased many in the central North Island ski industry. The government’s stated rationale for the $7 million funding was that it ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Two offenders, different treatments.
    See if you can spot the difference. An Iranian born female MP from a progressive party is accused of serial shoplifting. Her name is leaked to the media, which goes into a pack frenzy even before the Police launch an … Continue reading ...
    KiwipoliticoBy Pablo
    4 days ago
  • Treaty references omitted
    Ele Ludemann writes  – The government is omitting general Treaty references from legislation : The growth of Treaty of Waitangi clauses in legislation caused so much worry that a special oversight group was set up by the last Government in a bid to get greater coherence in the public service on Treaty ...
    Point of OrderBy poonzteam5443
    4 days ago
  • The Ghahraman Conflict
    What was that judge thinking? Peter Williams writes –  That Golriz Ghahraman and District Court Judge Maria Pecotic were once lawyer colleagues is incontrovertible. There is published evidence that they took at least one case to the Court of Appeal together. There was a report on ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 15
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Climate Scorpion – the sting is in the tail. Introducing planetary solvency. A paper via the University of Exeter’s Institute and Faculty of Actuaries.Local scoop: Kāinga Ora starts pulling out of its Auckland projects and selling land RNZ ...
    The KakaBy Bernard Hickey
    4 days ago
  • The day Wellington up-zoned its future
    Wellington’s massively upzoned District Plan adds the opportunity for tens of thousands of new homes not just in the central city (such as these Webb St new builds) but also close to the CBD and public transport links. Photo: Lynn Grieveson / The KākāTL;DR: Wellington gave itself the chance of ...
    The KakaBy Bernard Hickey
    4 days ago
  • Weekly Roundup 15-March-2024
    It’s Friday and we’re halfway through March Madness. Here’s some of the things that caught our attention this week. This Week in Greater Auckland On Monday Matt asked how we can get better event trains and an option for grade separating Morningside Dr. On Tuesday Matt looked into ...
    Greater AucklandBy Greater Auckland
    4 days ago
  • That Word.
    Something you might not know about me is that I’m quite a stubborn person. No, really. I don’t much care for criticism I think’s unfair or that I disagree with. Few of us do I suppose.Back when I was a drinker I’d sometimes respond defensively, even angrily. There are things ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • The Hoon around the week to March 15
    Photo: Lynn Grieveson / The KākāTL;DR: The five things that mattered in Aotearoa’s political economy that we wrote and spoke about via The Kākā and elsewhere for paying subscribers in the last week included:PM Christopher Luxon said the reversal of interest deductibility for landlords was done to help renters, who ...
    The KakaBy Bernard Hickey
    5 days ago
  • Labour’s policy gap
    It was not so much the Labour Party but really the Chris Hipkins party yesterday at Labour’s caucus retreat in Martinborough. The former Prime Minister was more or less consistent on wealth tax, which he was at best equivocal about, and social insurance, which he was not willing to revisit. ...
    PolitikBy Richard Harman
    5 days ago
  • Skeptical Science New Research for Week #11 2024
    Open access notables A Glimpse into the Future: The 2023 Ocean Temperature and Sea Ice Extremes in the Context of Longer-Term Climate Change, Kuhlbrodt et al., Bulletin of the American Meteorological Society: In the year 2023, we have seen extraordinary extrema in high sea surface temperature (SST) in the North Atlantic and in ...
    5 days ago
  • Melissa remains mute on media matters but has something to say (at a sporting event) about economic ...
     Buzz from the Beehive   The text reproduced above appears on a page which records all the media statements and speeches posted on the government’s official website by Melissa Lee as Minister of Media and Communications and/or by Jenny Marcroft, her Parliamentary Under-secretary.  It can be quickly analysed ...
    Point of OrderBy Bob Edlin
    5 days ago
  • The return of Muldoon
    For forty years, Robert Muldoon has been a dirty word in our politics. His style of government was so repulsive and authoritarian that the backlash to it helped set and entrench our constitutional norms. His pig-headedness over forcing through Think Big eventually gave us the RMA, with its participation and ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Will the rental tax cut improve life for renters or landlords?
    Bryce Edwards writes –  Is the new government reducing tax on rental properties to benefit landlords or to cut the cost of rents? That’s the big question this week, after Associate Finance Minister David Seymour announced on Sunday that the Government would be reversing the Labour Government’s removal ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Geoffrey Miller: What Saudi Arabia’s rapid changes mean for New Zealand
    Saudi Arabia is rarely far from the international spotlight. The war in Gaza has brought new scrutiny to Saudi plans to normalise relations with Israel, while the fifth anniversary of the controversial killing of Jamal Khashoggi was marked shortly before the war began on October 7. And as the home ...
    Democracy ProjectBy Geoffrey Miller
    5 days ago
  • Racism’s double standards
    Questions need to be asked on both sides of the world Peter Williams writes –   The NRL Judiciary hands down an eight week suspension to Sydney Roosters forward Spencer Leniu , an Auckland-born Samoan, after he calls Ezra Mam, Sydney-orn but of Aboriginal and Torres Strait ...
    Point of OrderBy poonzteam5443
    5 days ago
  • It’s not a tax break
    Ele Ludemann writes – Contrary to what many headlines and news stories are saying, residential landlords are not getting a tax break. The government is simply restoring to them the tax deductibility of interest they had until the previous government removed it. There is no logical reason ...
    Point of OrderBy poonzteam5443
    5 days ago
  • The Plastic Pig Collective and Chris' Imaginary Friends.
    I can't remember when it was goodMoments of happiness in bloomMaybe I just misunderstoodAll of the love we left behindWatching our flashbacks intertwineMemories I will never findIn spite of whatever you becomeForget that reckless thing turned onI think our lives have just begunI think our lives have just begunDoes anyone ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Who is responsible for young offenders?
    Michael Bassett writes – At first reading, a front-page story in the New Zealand Herald on 13 March was bizarre. A group of severely intellectually limited teenagers, with little understanding of the law, have been pleading to the Justice Select Committee not to pass a bill dealing with ram ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Gordon Campbell on National’s fantasy trip to La La Landlord Land
    How much political capital is Christopher Luxon willing to burn through in order to deliver his $2.9 billion gift to landlords? Evidently, Luxon is: (a) unable to cost the policy accurately. As Anna Burns-Francis pointed out to him on Breakfast TV, the original ”rock solid” $2.1 billion cost he was ...
    5 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 14
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Jonathon Porritt calling bullshit in his own blog post on mainstream climate science as ‘The New Denialism’.Local scoop: The Wellington City Council’s list of proposed changes to the IHP recommendations to be debated later today was leaked this ...
    The KakaBy Bernard Hickey
    5 days ago
  • No, Prime Minister, rents don’t rise or fall with landlords’ costs
    TL;DR: Prime Minister Christopher Luxon said yesterday tenants should be grateful for the reinstatement of interest deductibility because landlords would pass on their lower tax costs in the form of lower rents. That would be true if landlords were regulated monopolies such as Transpower or Auckland Airport1, but they’re not, ...
    The KakaBy Bernard Hickey
    5 days ago
  • Cartoons: ‘At least I didn’t make things awkward’
    This is a re-post from Yale Climate Connections by Tom Toro Tom Toro is a cartoonist and author. He has published over 200 cartoons in The New Yorker since 2010. His cartoons appear in Playboy, the Paris Review, the New York Times, American Bystander, and elsewhere. Related: What 10 EV lovers ...
    5 days ago
  • Solving traffic congestion with Richard Prebble
    The business section of the NZ Herald is full of opinion. Among the more opinionated of all is the ex-Minister of Transport, ex-Minister of Railways, ex MP for Auckland Central (1975-93, Labour), Wellington Central (1996-99, ACT, then list-2005), ex-leader of the ACT Party, uncle to actor Antonia, the veritable granddaddy ...
    Greater AucklandBy Patrick Reynolds
    5 days ago
  • I Think I'm Done Flying Boeing
    Hi,Just quickly — I’m blown away by the stories you’ve shared with me over the last week since I put out the ‘Gary’ podcast, where I told you about the time my friend’s flatmate killed the neighbour.And you keep telling me stories — in the comments section, and in my ...
    David FarrierBy David Farrier
    5 days ago
  • Invoking Aristotle: Of Rings of Power, Stones, and Ships
    The first season of Rings of Power was not awful. It was thoroughly underwhelming, yes, and left a lingering sense of disappointment, but it was more expensive mediocrity than catastrophe. I wrote at length about the series as it came out (see the Review section of the blog, and go ...
    6 days ago
  • Van Velden brings free-market approach to changing labour laws – but her colleagues stick to distr...
    Buzz from the Beehive Workplace Relations and Safety Minister Brooke van Velden told Auckland Business Chamber members they were the first audience to hear her priorities as a minister in a government committed to cutting red tape and regulations. She brandished her liberalising credentials, saying Flexible labour markets are the ...
    Point of OrderBy Bob Edlin
    6 days ago
  • Why Newshub failed
    Chris Trotter writes – TO UNDERSTAND WHY NEWSHUB FAILED, it is necessary to understand how TVNZ changed. Up until 1989, the state broadcaster had been funded by a broadcasting licence fee, collected from every citizen in possession of a television set, supplemented by a relatively modest (compared ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Māori Party on the warpath against landlords and seabed miners – let’s see if mystical creature...
    Bob Edlin writes  –  The Māori Party has been busy issuing a mix of warnings and threats as its expresses its opposition to interest deductibility for landlords and the plans of seabed miners. It remains to be seen whether they  follow the example of indigenous litigants in Australia, ...
    Point of OrderBy Bob Edlin
    6 days ago
  • There’s a name for this
    Every year, in the Budget, Parliament forks out money to government agencies to do certain things. And every year, as part of the annual review cycle, those agencies are meant to report on whether they have done the things Parliament gave them that money for. Agencies which consistently fail to ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Echoes of 1968 in 2024?  Pocock on the repetitive problems of the New Left
    Mike Grimshaw writes – Recent events in American universities point to an underlying crisis of coherent thinking, an issue that increasingly affects the progressive left across the Western world. This of course is nothing new as anyone who can either remember or has read of the late ...
    Point of OrderBy poonzteam5443
    6 days ago

  • Positive progress for social worker workforce
    New Zealand’s social workers are qualified, experienced, and more representative of the communities they serve, Social Development and Employment Minister Louise Upston says. “I want to acknowledge and applaud New Zealand’s social workers for the hard work they do, providing invaluable support for our most vulnerable. “To coincide with World ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Minister confirms reduced RUC rate for PHEVs
    Cabinet has agreed to a reduced road user charge (RUC) rate for plug-in hybrid electric vehicles (PHEVs), Transport Minister Simeon Brown says. Owners of PHEVs will be eligible for a reduced rate of $38 per 1,000km once all light electric vehicles (EVs) move into the RUC system from 1 April.  ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • Trade access to overseas markets creates jobs
    Minister of Agriculture and Trade, Todd McClay, says that today’s opening of Riverland Foods manufacturing plant in Christchurch is a great example of how trade access to overseas markets creates jobs in New Zealand.  Speaking at the official opening of this state-of-the-art pet food factory the Minister noted that exports ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • NZ and Chinese Foreign Ministers hold official talks
    Minister of Foreign Affairs Winston Peters met with Chinese Foreign Minister Wang Yi in Wellington today. “It was a pleasure to host Foreign Minister Wang Yi during his first official visit to New Zealand since 2017. Our discussions were wide-ranging and enabled engagement on many facets of New Zealand’s relationship with China, including trade, ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Kāinga Ora instructed to end Sustaining Tenancies
    Kāinga Ora – Homes & Communities has been instructed to end the Sustaining Tenancies Framework and take stronger measures against persistent antisocial behaviour by tenants, says Housing Minister Chris Bishop. “Earlier today Finance Minister Nicola Willis and I sent an interim Letter of Expectations to the Board of Kāinga Ora. ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Speech to Auckland Business Chamber: Growth is the answer
    Tēna koutou katoa. Greetings everyone. Thank you to the Auckland Chamber of Commerce and the Honourable Simon Bridges for hosting this address today. I acknowledge the business leaders in this room, the leaders and governors, the employers, the entrepreneurs, the investors, and the wealth creators. The coalition Government shares your ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Singapore rounds out regional trip
    Minister Winston Peters completed the final leg of his visit to South and South East Asia in Singapore today, where he focused on enhancing one of New Zealand’s indispensable strategic partnerships.      “Singapore is our most important defence partner in South East Asia, our fourth-largest trading partner and a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister van Velden represents New Zealand at International Democracy Summit
    Minister of Internal Affairs and Workplace Relations and Safety, Hon. Brooke van Velden, will travel to the Republic of Korea to represent New Zealand at the Third Summit for Democracy on 18 March. The summit, hosted by the Republic of Korea, was first convened by the United States in 2021, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Insurance Council of NZ Speech, 7 March 2024, Auckland
    ICNZ Speech 7 March 2024, Auckland  Acknowledgements and opening  Mōrena, ngā mihi nui. Ko Andrew Bayly aho, Nor Whanganui aho.  Good morning, it’s a privilege to be here to open the ICNZ annual conference, thank you to Mark for the Mihi Whakatau  My thanks to Tim Grafton for inviting me ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Five-year anniversary of Christchurch terror attacks
    Prime Minister Christopher Luxon and Lead Coordination Minister Judith Collins have expressed their deepest sympathy on the five-year anniversary of the Christchurch terror attacks. “March 15, 2019, was a day when families, communities and the country came together both in sorrow and solidarity,” Mr Luxon says.  “Today we pay our respects to the 51 shuhada ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech for Financial Advice NZ Conference 5 March 2024
    Speech for Financial Advice NZ Conference 5 March 2024  Acknowledgements and opening  Morena, Nga Mihi Nui.  Ko Andrew Bayly aho, Nor Whanganui aho. Thanks Nate for your Mihi Whakatau  Good morning. It’s a pleasure to formally open your conference this morning. What a lovely day in Wellington, What a great ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Early visit to Indonesia strengthens ties
    Foreign Minister Winston Peters held discussions in Jakarta today about the future of relations between New Zealand and South East Asia’s most populous country.   “We are in Jakarta so early in our new government’s term to reflect the huge importance we place on our relationship with Indonesia and South ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • China Foreign Minister to visit
    Deputy Prime Minister and Minister of Foreign Affairs Winston Peters has announced that the Foreign Minister of China, Wang Yi, will visit New Zealand next week.  “We look forward to re-engaging with Foreign Minister Wang Yi and discussing the full breadth of the bilateral relationship, which is one of New Zealand’s ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister opens new Auckland Rail Operations Centre
    Transport Minister Simeon Brown has today opened the new Auckland Rail Operations Centre, which will bring together KiwiRail, Auckland Transport, and Auckland One Rail to improve service reliability for Aucklanders. “The recent train disruptions in Auckland have highlighted how important it is KiwiRail and Auckland’s rail agencies work together to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Celebrating 10 years of Crankworx Rotorua
    The Government is proud to support the 10th edition of Crankworx Rotorua as the Crankworx World Tour returns to Rotorua from 16-24 March 2024, says Minister for Economic Development Melissa Lee.  “Over the past 10 years as Crankworx Rotorua has grown, so too have the economic and social benefits that ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government delivering on tax commitments
    Legislation implementing coalition Government tax commitments and addressing long-standing tax anomalies will be progressed in Parliament next week, Finance Minister Nicola Willis says. The legislation is contained in an Amendment Paper to the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill issued today.  “The Amendment Paper represents ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Significant Natural Areas requirement to be suspended
    Associate Environment Minister Andrew Hoggard has today announced that the Government has agreed to suspend the requirement for councils to comply with the Significant Natural Areas (SNA) provisions of the National Policy Statement for Indigenous Biodiversity for three years, while it replaces the Resource Management Act (RMA).“As it stands, SNAs ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government classifies drought conditions in Top of the South as medium-scale adverse event
    Agriculture Minister Todd McClay has classified the drought conditions in the Marlborough, Tasman, and Nelson districts as a medium-scale adverse event, acknowledging the challenging conditions facing farmers and growers in the district. “Parts of Marlborough, Tasman, and Nelson districts are in the grip of an intense dry spell. I know ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government partnership to tackle $332m facial eczema problem
    The Government is helping farmers eradicate the significant impact of facial eczema (FE) in pastoral animals, Agriculture Minister Todd McClay announced.  “A $20 million partnership jointly funded by Beef + Lamb NZ, the Government, and the primary sector will save farmers an estimated NZD$332 million per year, and aims to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ, India chart path to enhanced relationship
    Foreign Minister Winston Peters has completed a successful visit to India, saying it was an important step in taking the relationship between the two countries to the next level.   “We have laid a strong foundation for the Coalition Government’s priority of enhancing New Zealand-India relations to generate significant future benefit for both countries,” says Mr Peters, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Ruapehu Alpine Lifts bailout the last, say Ministers
    Cabinet has agreed to provide $7 million to ensure the 2024 ski season can go ahead on the Whakapapa ski field in the central North Island but has told the operator Ruapehu Alpine Lifts it is the last financial support it will receive from taxpayers. Cabinet also agreed to provide ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action to drive better cancer services
    Health Minister Dr Shane Reti says the launch of a new mobile breast screening unit in Counties Manukau reinforces the coalition Government’s commitment to drive better cancer services for all New Zealanders. Speaking at the launch of the new mobile clinic, Dr Reti says it’s a great example of taking ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action to drive better cancer services
    Health Minister Dr Shane Reti says the launch of a new mobile breast screening unit in Counties Manukau reinforces the coalition Government’s commitment to drive better cancer services for all New Zealanders. Speaking at the launch of the new mobile clinic, Dr Reti says it’s a great example of taking ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
    Unlocking economic growth and land for housing are critical elements of the Government’s plan for our transport network, and planned upgrades to State Highway 29 (SH29) near Tauriko will deliver strongly on those priorities, Transport Minister Simeon Brown says. “The SH29 upgrades near Tauriko will improve safety at the intersections ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
    Unlocking economic growth and land for housing are critical elements of the Government’s plan for our transport network, and planned upgrades to State Highway 29 (SH29) near Tauriko will deliver strongly on those priorities, Transport Minister Simeon Brown says. “The SH29 upgrades near Tauriko will improve safety at the intersections ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Fresh produce price drop welcome
    Lower fruit and vegetable prices are welcome news for New Zealanders who have been doing it tough at the supermarket, Finance Minister Nicola Willis says. Stats NZ reported today the price of fruit and vegetables has dropped 9.3 percent in the 12 months to February 2024.  “Lower fruit and vege ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Statement to the 68th United Nations Commission on the Status of Women
    Tēnā koutou katoa and greetings to you all.  Chair, I am honoured to address the sixty-eighth session of the Commission on the Status of Women. I acknowledge the many crises impacting the rights of women and girls. Heightened global tensions, war, climate related and humanitarian disasters, and price inflation all ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to the 68th United Nations Commission on the Status of Women (CSW68)
    Tēnā koutou katoa and greetings to you all.  Chair, I am honoured to address the 68th session of the Commission on the Status of Women. I acknowledge the many crises impacting the rights of women and girls. Heightened global tensions, war, climate related and humanitarian disasters, and price inflation all ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government backs rural led catchment projects
    The coalition Government is supporting farmers to enhance land management practices by investing $3.3 million in locally led catchment groups, Agriculture Minister Todd McClay announced. “Farmers and growers deliver significant prosperity for New Zealand and it’s vital their ongoing efforts to improve land management practices and water quality are supported,” ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to Auckland Business Chamber
    Good evening everyone and thank you for that lovely introduction.   Thank you also to the Honourable Simon Bridges for the invitation to address your members. Since being sworn in, this coalition Government has hit the ground running with our 100-day plan, delivering the changes that New Zealanders expect of us. ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Commission’s advice on ETS settings tabled
    Recommendations from the Climate Change Commission for New Zealand on the Emissions Trading Scheme (ETS) auction and unit limit settings for the next five years have been tabled in Parliament, Climate Change Minister Simon Watts says. “The Commission provides advice on the ETS annually. This is the third time the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government lowering building costs
    The coalition Government is beginning its fight to lower building costs and reduce red tape by exempting minor building work from paying the building levy, says Building and Construction Minister Chris Penk. “Currently, any building project worth $20,444 including GST or more is subject to the building levy which is ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Trustee tax change welcomed
    Proposed changes to tax legislation to prevent the over-taxation of low-earning trusts are welcome, Finance Minister Nicola Willis says. The changes have been recommended by Parliament’s Finance and Expenditure Committee following consideration of submissions on the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill. “One of the ...
    BeehiveBy beehive.govt.nz
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  • Minister’s Ramadan message
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