web analytics

An outside view on CGT

Written By: - Date published: 7:03 am, July 8th, 2011 - 78 comments
Categories: labour, national, tax - Tags: ,

We tend to get very wrapped up in our own world here in NZ. Same old voices running the same old lines round and round in circles until we’re all dizzy and just a little bit nauseous. Sometimes it’s good to hop off the merry-go-round and seek an outside perspective on the issues of the day.

Case in point the CGT (capital gains tax) debate. Yesterday’s Morning Report interview with Sydney Morning Herald economics correspondent Peter Martin (hat tip Gordon Campbell) is an excellent overview of the topic, and an eye opener of an international perspective. The audio is here, but I’ve transcribed some extracts.

On how odd we are for not having a CGT:

I thought NZ was something of a worldwide orphan … members of both sides of [Australian] politics use NZ as a sort of case study in strangeness because there’s a yawning gap in New Zealand’s tax system, which isn’t there in the UK’s tax system, isn’t there in the US tax system, isn’t there in the Australian tax system.

And yet the New Zealanders showed the way for us in the mid 80’s with their goods and services tax. And yet there’s always been this strange thing missing that New Zealand’s been unable to do, and I must say I thought it would never happen, it would be one of the continuing quaint things about our cousins across the ditch.

On how a CGT allows all income to be treated as income:

… the idea is that if you earn a buck, you’ve earned a buck, it doesn’t matter how you’ve earned it. So if you earn a buck from working hard, labour, you’re taxed on that at your marginal tax rate. If you earn a buck from selling shares at a profit, or buying anything else really and selling it at a profit, speculation I suppose you could call it, you’re taxed on that at your marginal tax rate.

So if your marginal tax rate is low, 15%, that’s what you’re taxed. If your marginal tax rate is 30%, that’s what you’re taxed. …

There is no [separate] capital gains tax in Australia, and there is no [separate] capital gains tax in a lot of other countries. Capital gains are regarded as income.

Far from the nightmare of complexity that the Nats are trying to scare us with, that sounds pretty simple doesn’t it! There’s plenty of other good stuff in that interview on how the lack of a CGT creates damaging distortions in our tax system, and how (despite all dire predictions) the CGT didn’t destroy the property market in Australia. But I want to finish with one final point, that is particularly important, as hysterical Nats try and talk down the amount that a CGT might raise:

Raising isn’t the point. This is misunderstood.

A capital gains tax could be very effective if it raised nothing. What the capital gains tax does ideally is stop people, for tax reasons, changing income into capital gain. So even if the amount that you forecast you would raise from the capital gains tax is low, that isn’t an argument against the capital gains tax. Because if it is low, it’s because what it is doing is encouraging people to make fewer “capital gains” (with quotation marks around them) and make greater income.

It’s more a case of just not having (sort of) a big gap in the tax system people can drive trucks through.

Far from the complexity, avoidance, and low yield that the Nats would have you believe, the picture of CGT that emerges from this interview is one of simplicity, fairness, and closing loopholes. No wonder the Nats hate it.

78 comments on “An outside view on CGT ”

  1. Harris was very clear and succinct.  I hope that his comments are utilised again.

    I bet the Labour leadership is pleased that on day three of that launch that was not the CGT debate is still going strong.  The debate in the various papers is fascinating.  The Herald said yesterday that Goff’s CGT proposal showed courage, and when you can rely on Hooten and Farrar for support you know the Nats have a headache.

    The proposal clearly shows that Labour has a plan and National does not.  And the tax will allow the Government not to sell shares in the power companies to cover the Government’s expenses. 

    • queenstfarmer 1.1

      the tax will allow the Government not to sell shares in the power companies to cover the Government’s expenses

      Agreed with you up to this point. Based on the SWG numbers, the estimate is that a CGT on investment property would bring in around $700m a year, after 15 years. How is that going to cover the Govt’s current expenses, let alone the spending increases promised by Labour?

      • Draco T Bastard 1.1.1

        Did you read this bit?

        Raising isn’t the point. This is misunderstood.

        A capital gains tax could be very effective if it raised nothing.

        If people are presently managing to structure their income as capital gains that income is not taxed. Throw in a CGT and that income becomes taxable even if the actual capital gains disappear. In other words, we may see a increase in tax take indirectly from the CGT as some present tax structures used to minimise tax are forgone.

        • queenstfarmer 1.1.1.1

          I agree. Hence, my questioning the assertion that the CGT would cover Govt expenses.

          • Draco T Bastard 1.1.1.1.1

            The CGT itself may not but it’s total effect probably will.

          • Deadly_NZ 1.1.1.1.2

            At the end of the day who really cares?? Just as long as it evens out the playing field and stops the insane property investment, that stops ‘working’ kiwi’s buying their own houses. And if they cant pay it (CGT) Sell up, then pay the tax, and if you still don’t like it. I hear that Somalia is ripe for property investment sharks, you should go well with the Pirates they’ll make you feel right at home. for a price.

      • mickysavage 1.1.2

        the estimate is that a CGT on investment property would bring in around $700m a year, after 15 years. How is that going to cover the Govt’s current expenses, let alone the spending increases promised by Labour?
         
        Initially I agree it will not cover current expenses.  Putting everything else aside if the Government does not sell the power company shares there is a $6 billion hole in the country’s finances that will need to be replaced with borrowing.
         
        As time goes by this hole can be refilled by the larger than otherwise dividend stream that the Government will receive and also by CGT as payments start.
         
        The interest cost on the extra borrowing will be in the vicinity of $300 million a year which is less than the forecast dividend stream.

        EDIT: I also agree with Draco that the general tax take should increase and this will also help fill in the hole.

  2. Chris 2

    Yes it is a bolder plan by Labour, it will make sure they won’t win the election, but it’s a plan even if it’s in the wrong direction to win an election.

    • Colonial Viper 2.1

      In that case I hope Labour comes up with many more policies which “make sure they won’t win the election” 🙂

  3. aj 3

    A CGT is not going to stop people from striving for capital gains. It just means that the $100,000 windfall gain becomes $85,000, or the $1,000,000 gain becomes $850,000

    That’s no going to be end times for investors in any market that may be caught by a CGT. The arguments against it are just the normal ideological ones that come from those who view any form of taxation as theft.

    • felix 3.1

      “The arguments against it are just the normal ideological ones that come from those who view any form of taxation as theft.”

      This.

      • That’s nonsense. There are always valid arguments, ideological and others, for and against any tax.

        Virtually everyone accepts that tax is essential, so “view any form of taxation as theft” is a poor attempt at labelling abuse.

        • felix 3.1.1.1

          Not from you there aren’t.

        • Draco T Bastard 3.1.1.2

          Most people accept that taxes are necessary. The psychopaths leading National and Act think it’s theft.

        • Deadly_NZ 3.1.1.3

          Really I think that to have a work mate pay a lesser amount of tax just because he has an investment property is obscene. Bring on the CGT.

    • Frank Macskasy 3.2

      Indeed, Aj.

      I recall the same arguments against GST – and that tax hit low-income earners/beneficiaries/superannuitants even worse.

      Yet, here we are twentyfour years later – the world has not ended. (*Looks out window to confirm continuing existence of the universe*)

      • Draco T Bastard 3.2.1

        (*Looks out window to confirm continuing existence of the universe*)

        Testing…

        • Deadly_NZ 3.2.1.1

          Oh shoot the Yes button failed, press………..press……….press…………press…………
          ” We are sorry Universal testing failed”
          “self destruct armed. 15 minutes to detonation”
          “Please enter your 256k encryption code, to disarm”
          “Sorry you took too long”
          b
          y
          e

  4. Australia is the obvious place to look to for the pros and cons of a Capital Gains Tax. And there’s obviously good reasons why many countries use CGT in various forms – as in fact we already do in New Zealand.

    But there’s a lot more to it than one glowing review of one opinion.

    Far from the complexity, avoidance, and low yield…

    A quick squiz at Capital gains tax in Australia suggests it mightn’t be quite as simple as you’re making out.

    Avoidance is an issue with any form of taxation.

    Yield can be low, especially in the first decade of implementation, and can be quite variable, as shown here: Chart of the day, ruining it for everyone edition. It’s noticable how slow and low it can be, and the impact it can have on tax take during a recession.

    • Colonial Viper 4.1

      Why don’t you read the post and listen to the piece before commenting mate, you know the bit where the guy says a CGT could raise no money and still be very effective. Loser.

      • Why don’t you read the post and what I quoted? You know, the bit where they guy says:

        Far from the complexity, avoidance, and low yield that the Nats would have you believe

  5. Longinius Howard 5

    That should be nauseated not nauseous

  6. The Gormless Fool formerly known as Oleolebiscuitbarrell 6

    “A capital gains tax could be very effective if it raised nothing.”

    Yet yesterday:

    “Danyl at DimPost nails it with characteristic economy – “National wants to finance the rebuilding of Christchurch via asset sales; Labour via a tax on property speculation”.”

    If CGT is going to raise no money, how is Labour going to fund its promises?

    • Colonial Viper 6.1

      Christchurch needs to be funded and rebuilt over the next 10 or more years, not in the next 2 years.

      • The Gormless Fool formerly known as Oleolebiscuitbarrell 6.1.1

        That’s brilliantly answered, then.

        If CGT is to be enacted to raise the money that National wants to raise by partial asset sales, but it is acknowledged that a CGT will raise no revenue, is there not a little problemette?

        • felix 6.1.1.1

          Try reading the post Ole. If CG is treated as income then the normal income tax applies.

          • The Gormless Fool formerly known as Oleolebiscuitbarrell 6.1.1.1.1

            Only it is not. In Australia, if you have held the asset for a year it is not taxed as other income. it is taxed at 50% of the rate of income.

            But that wasn’t my point in any event.

            I am inclined to favour the tax as a re-balancing exercise, something the post lauds (“Raising isn’t the point.”) That’s fine. But if it raises no extra money you can’t claim it as the counter-balance to partial asset sales.

            • felix 6.1.1.1.1.1

              If more CGs are classed as income then more income is taxed then more money is raised.

              • higherstandard

                What about the losses ?

                • Daveo

                  Aren’t losses already able to be written off against tax on other income?

                  • The Gormless Fool formerly known as Oleolebiscuitbarrell

                    Not if they are on capital account.

                    • Totally buggered

                      The last time the country was in panic mode over debt we sold our railways telecommunications forestry fishing banks an airline and and god knows what else and began the process of privatizing our power companies ,all of which made huge profits for the advertising industry law firms overseas profits to everywhere else and put alot of people out of work.We got in return Australian companies setting the platform for NZ business not that that was entirely detrimental but it did change us from being able to see the wood for the trees which is to say we didnt have a grip on the detail in this international carve up of the country.
                      Our core resources last time were agriculture fishing forestry and cheap power now it is importing other peoples money for housing and growing an urban economy cos its easier, bugger food its in the too hard basket yeah right .Farming is being forced to rape the water and ecology of the country because we failed to secure our fishing industry and stop the consumption of agricultural land for urban sprawl.
                      Why should we have to allow all the fishing nations in the world the right to our resource without being able to control the value of that resource all the way back to where they come from.Might over right.
                      So when the environment is fucked and the food supply is the price of Japan’s the only people who will be able to live here will be the ones who have made their money else where which is the road we are going down. We cant even manage 4 million people let alone think we could support 15million.
                      Capital gains tax might be a good start in bringing some sense to this country’s finance problems

    • Draco T Bastard 6.2

      Yep, still gormless and still a fool. Taking a sentence out of context is a good way to the lose meaning and thus the argument. And you hadn’t even begun yet.

      • The Gormless Fool formerly known as Oleolebiscuitbarrell 6.2.1

        Still a bastard, I see (handle hilarity never gets old).

        There I was thinking that a large point of the post was that a CGT is valuable for re-balancing, even if it raises no money.

        Man, am I stupid.

        • Draco T Bastard 6.2.1.1

          Two things:
          1.) The CGT will probably raise some money itself. It’s actually highly unlikely to raise none although it’s possible to be low.
          2.) The existence of a CGT will likely cause a shift in present tax structures which will most likely cause an increase in the tax take.

          Both of these points you completely failed to address and yet they were both within the scope of the context of the first sentence you quoted.

          Man, am I stupid.

          Yes, you are.

          • The Gormless Fool formerly known as Oleolebiscuitbarrell 6.2.1.1.1

            Yes. I did fail to address them, didn’t I? But then, I did not then fully appreciate that it fell to me (and apparently, to me alone) to present a point-by-point refutation of every aspect of the post. Nor did I then completely grasp that a failure to do so made me stupid.

            Luckily for you, I do not require such rigour from you, Bastard. If you feel like it, you might address the sole point I raised which was: how can you claim the CGT will make partial asset sales unnecessary while at the same time accepting that it will raise not much revenue?

            And if you choose not to (as you have twice so far) I doubt I will find it necessary to put it down to your lack of intellect (although I have to say, if you cannot find terms of abuse other than those I have already applied to myself I may have to conclude that you are a little derivative).

  7. higherstandard 7

    So when’s the actual policy details coming out ?

    The speculation about what’s in or out of the CGT is getting a bit boring.

  8. queenstfarmer 8

    Good commentary. One point though, remember that in NZ capital gains are regarded as income in a variety of circumstances (at the marginal tax rate), however the gaping hole in this is investment property.

  9. Lanthanide 9

    A (really boring) tax professor from Auckland University I think it was, some university anyway, was on the radio this morning saying that actually the guy yesterday oversimplified and distorted how Australia’s system really worked.

    He said that actually Australia has a ledger separate from your normal income tax at which capital gains are on and on taxed at (and losses are carried forward separate). He didn’t give a precise clarification on what this meant, but I think the gist of it is that if you’re earning $100k salary and your marginal tax rate is say 30%, if you make capital gains of $20k in the year they will go onto the separate CGT scale at $20k and you might pay 15% tax on them, and they are not added to your income tax (so you don’t effectively earn $120k in income and pay 30% marginal on the extra $20k).

    So, given that, I’d be a bit weary to rely on anything specific yesterday’s “economics correspondent” said.

    • Draco T Bastard 9.1

      I’m not. What he said, that income should be taxed no matter how it’s “earned”, makes sense. On top of that, obviously the one Labour is putting forward won’t be the same as the Australian one and is, hopefully, even better after learning lessons from the Australian one.

      • hopefully, even better after learning lessons from the Australian one.

        Yes, hopefully, and that’s an advantage of following rather than leading with new tax systems.

        Labour probably still have a few years to fine tune their version.

    • Lanthanide, the Australian addressed this. He mentioned that the Howard government changed it from the marginal tax rate to the scheme you outlined (and effectively cut it to 15% or thereabouts).

      So – at least on that basis – you shouldn’t ignore his other points. 

  10. marsman 10

    Duncan Garner, Jackboot Joyce’s Mediaworks Poodle, lead a scaremongering bleat-along on the ‘ news’ last night. The sale of farms will be taxed, in headlines. A farmer’s representative was nearly apoplectic trying to give reasons why this would be unfair, he said ‘ a tax on the sale of assets is against the NZ psyche’. (!)

    • Colonial Viper 10.1

      Well it’s again a certain minority interest group’s psyche anyways.

    • queenstfarmer 10.2

      Provided that farms are going to be taxed then it’s hardly scaremongering. But the farmers need to calm down and not spout nonsense (“against the NZ psyche”).

      For a start, I’d suggest it’s in everyone’s interest that the days of do-nothing capital gains for even marginal farms are over (for a decent while, anyway).

      Secondly, any capital gain will be (I expect) offsettable against the massive capital expenditure that farms typically require (or at least, require to warrant a genuine capital gain).

    • dave brown 10.3

      NZ pychopathology more like. I think its this underworld of entrenched settler entitlement that making Labour bring in a Clayton’s CGT at 15%. If the CGT was a the marginal tax rate there might be a bit more booty, but a hell of a lot more fury among the petty bourgeoisie. If capital gains is to be treated as income it should be added to total household income and taxed at marginal rates?

      • Colonial Viper 10.3.1

        The issue is inflation eroding away over time the value of the capital gains from any held asset.

        If you buy $10K of property today and sell it next month for $14K that’s a $4K capital gain right?

        If you buy $10K of property and sell it in 10 years time for $14K you make nothing – adjusted for inflation. To take another bite out of that at the marginal tax rate means you lose value, in terms of inflation adjusted dollars.

        • Ian Boag 10.3.1.1

          Agreed – the inflation thing has to be considered. There’s the other factor that if the purchase of the asset involved debt (as they usually do) the % gain of your asset will be greater than the inflation rate. Gearing and all that.

          Treating half the gain (rather than all of it) as income is a simple and reasonably fair way of dealing with this. Possibly that’s part of why the Australians, Canadians and Americans do it this way.

          While we’re at it, one might note that no country collects tax on unrealised gains and everyone exempts the family home. Can’t see an NZ CGT (if it happens) being different.

          According to the Tax Working Group the Oz CGT collects about $20b/year. Given that we are about 20% of their size then it seems reasonable to think the figure in NZ for a similar tax would be about $4b give or take a bit.

      • Chris 10.3.2

        There has been a bit of a study on this and it was found that making capital gains at marginal tax rates actually reduces the revenue for the government:

        http://www.adamsmith.org/publications/economy/the-effect-of-capital-gains-tax-rises-on-revenues/

        Admittedly this is looking at the effect of tax increases and decreases as opposed to the introduction of the tax but still applies.

      • Colonial Viper 10.3.3

        yeah anytime I read right wing analyses it says that lowering tax rates to zero magically causes tax revenues to shoot up

        Look at how well it works in the USA

        • Chris 10.3.3.1

          What are you talking about?

          I don’t think it should be at zero I agree with a capital gains tax. I was just trying to say it shouldn’t be at the marginal tax rates. Instead of just posting that randomly without any backing, like you the way you have dismissed it, I decided to find some research which backed it up.

          In case you were wondering nowhere in the that study does it advocate removing a capital gains tax as a way to increase revenues.

  11. Frank Macskasy 11

    As I pointed out to Redlogix, in the thread “The housing market implications of capital gains tax”, I’ve owned rental properties as well (still do).

    I could never understand why, when I sold two of them, I could ‘earn’ a tax-free capital gain. The first time my accountant told me this, I thought he was incompetant and actually sought other advice. That advice confirmed my accountant.

    On top of that, I could claim for “depreciation” – even while my property values were going up. (Point of interest: I considered the tax policy of claiming for depreciation on a house that was APPRECIATING in value, to be obscene. I never claimed for it.)

    As an investor, I’ll put my money into property and rent out to a low-income family. I don’t expect to be given a “free ride” in the taxation system and not pay my fair share, should I sell a house and make a gain.

    That is why Labour’s plan for a CGT is timely – actually, way past timely! – and fair. No one else gets tax exemptions for mondey they make – why should property investors? Otherwise, quite simply, we are bludging off hard working kiwis who earn wages and businesspeople who take risks in their ventures.

    So, kudos to Phil Goff.

    And shame on John Key for attempting to perpetuate a social injustice and economic nonsense.

  12. Endymion 12

    “On how a CGT allows all income to be treated as income…

    If you earn a buck from selling shares at a profit, or buying anything else really and selling it at a profit, speculation I suppose you could call it, you’re taxed on that at your marginal tax rate.”

    If the IRD can establish that you earn your living ‘speculating’ on shares, FX, the horses or even pokey machines it already has the option of treating it as ‘earned income’ for taxation. That probably isn’t as well enforced as it could and should be, but all a CGT does is widen the net to bring in so-called ‘mum-and-dad shareholders’.

    Moreover a capital gains tax is, like GST, a tax on inflation.

    • Draco T Bastard 12.1

      If the IRD can establish that you earn your living ‘speculating’ on shares, FX, the horses or even pokey machines it already has the option of treating it as ‘earned income’ for taxation.

      It’s probably not enforced well because the legislation is so fuzzy it makes it easy to dodge. A CGT fixes that.

      Moreover a capital gains tax is, like GST, a tax on inflation.

      Apparently it’s set at 15% and not the full tax rate so as to account for inflation.

  13. SHG 13

    A CGT didn’t kill the Australian property investment market because of the way the investment revenue is offset against the mortgage under the Aussie tax system.

    For example:

    I borrow money to buy a property.

    The repayments cost me $y/month.

    I put some tenants into the property and they pay me $z/month

    If z is less than y – if I’m making less in rent than I’m paying in interest – then the property is negatively-geared and y becomes tax deductible, as does every single expense to do with the property, since on paper I’m losing money by owning the house.

    • Lanthanide 13.1

      Works the same here, except you can only claim mortgage interest, not mortgage principle.

      If you were using a LAQC then you could claim the entire mortgage expense.

      • SHG 13.1.1

        And then you can sell the house, pay off the mortgage, and pocket everything remaining as pure profit, untaxed?

  14. Thinking more about the way this debate is working it is a very neat skewering of John Key himself.  If he objects and complains all that he will be doing is adopting a position where he can be accused of acting out of self interest.  As I/S points out he is essentially favouring those with capital over those who work for a living.
     

    • Jim Nald 14.1

      “skewering” – hehe

      Might we see John Armstrong’s headline for his upcoming piece to read:

      “Labour’s CGT: John Keybab Getting The Heat From His Doners”

    • Lanthanide 14.2

      Wonder if they would fly in a debate in parliament.

      “The prime minister, and other ministers of the cabinet, between them own xx properties. It’s easy to see why they don’t want a CGT introduced into this country”.

  15. tsmithfield 15

    We already have a capital gains tax in NZ. Its called GST. If the price at sale is higher, the GST is higher.

    • Colonial Viper 15.1

      ?

      GST doesn’t apply to shares or established rental properties

    • rd 15.2

      And if the property is sold with the tenants as a going concern the GST is 0 rated.

    • lprent 15.3

      Huh. Perhaps you should look at this as a very short summary.

      It is a sales tax that is applied at the universal rate of 15% on almost everything you buy – notable exceptions are:

      house sales
      house rentals
      privately sold second-hand goods
      financial services such as mortgages, loans and investments
      the sale of a business that is capable of being a going concern.

  16. mikesh 16

    CGT is still problematic. A better approach would be to disallow, for tax purposes, all expenses related to property, on the grounds that they are capital related rather than income related.

  17. Craig Glen Eden 17

    Yup the Nats are worried theirs no doubt about that, this tax is polarizing. This policy (CGT) on top of others Labour has released makes a clear difference between National and Labour. National have no more dead rats to swallow last time they pretended they were light blue and you can trust the nice MR Key he will deliver a brighter future. Facts are he hasn’t, wage gap with Aussie isnt closing,Government debt is up not down, increased people unemployed the whole aspirational brighter future is looking a lot like some bad investment rip off. Labour just has to weight for the Hanover effect and it will be very interesting to see which way the investors chose to spend their vote.

  18. tsmithfield 18

    So that seems to be more a problem with GST law than an argument for a CGT.

  19. tsmithfield 19

    Sorry. My comment above didn’t attach to the correct thread for some reason.

    I would be interested in comments on how a CGT copes with inflation. If an asset increases in value at the rate of inflation there hasn’t actually been a true gain, so should it be taxed?

    • Colonial Viper 19.1

      I’ve learnt that’s probably why the CGT is set significantly under the marginal income tax rate.

  20. tsmithfield 20

    Perhaps. But it still doesn’t completely deal with the inequity of the situation. Capital gains are quite different to trading gains, where the profit usually accrues in close proximity to the purchase. So inflation isn’t such an issue. But with a CGT an asset might be sold 20 years after the purchase. In that case the government is likely making a windfall gain on the basis of inflation.

    • Draco T Bastard 20.1

      You’re just not with it today are you? That’s why it’s set at 15% and not 30%. Personally I’d prefer proper indexing but it seems people are already too scared about it being “complex”.

    • Colonial Viper 20.2

      Yeah an outlier case like that is likely to end up with a higher effective tax rate, once inflation is factored in.

      While properties sold within a few years of acquisition (which form most of investment property transactions I figure) are likely to end up with a lower effective tax rate.

      Remember a family home sold after 20 years occupation and ownership is exempt from the CGT.

Recent Comments

Recent Posts

  • Government provides greater assurance to homeowners
    The Government has provided greater assurance for homeowners with the introduction of a new code of ethics for Licensed Building Practitioners (LBPs), Building and Construction Minister Poto Williams announced today.   The Code of Ethics, which comes into force in October 2022, sets behavioural standards for LBPs to give both ...
    BeehiveBy beehive.govt.nz
    20 mins ago
  • Supporting economic resilience in the Indo-Pacific – Speech to the Asia Forum
    (Check against delivery) Ladies and gentlemen, distinguished guests, kia ora koutou katoa Thank you Farib. It is a great pleasure to be invited to speak at this event. I want to acknowledge the on-going work of the Asia Forum. Over many years – decades, in fact – you have been ...
    BeehiveBy beehive.govt.nz
    4 hours ago
  • RSI ‘state of the nation’ report published
    New Zealand’s FCR cited research ratio is twice the world average Investment in R&D is increasing Case studies underscore how a science based COVID-19 response helped save lives In 2019, Māori and Pacific people represented 5 per cent of PhD graduates. The latest research, science and innovation system report card ...
    BeehiveBy beehive.govt.nz
    4 hours ago
  • Funding to translate science into real life solutions
    The Government is investing in ‘Te Tītoki Mataora’ the MedTech Research Translator, to deliver new medical tools - and meet both the demands of a global pandemic and of a growing and aging population. “COVID-19 has shown that we need to build a more resilient, productive, innovative and economically-sustainable health ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Tokelau champions language and culture
    COVID-19 continues to be a powerful reminder of the importance of language and culture to the wellbeing of our Pacific communities, said the Minister for Pacific Peoples, Aupito William Sio. “Our Tokelau community in Aotearoa has responded strongly to the challenges of the global pandemic by getting vaccinated and supporting ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Festival drug-checking services get a boost
    The Government is financially supporting drug-checking services to help keep young people safe at this summer’s large festivals and events, Health Minister Andrew Little says. “This is not about condoning drug use, but about keeping people safe,” Andrew Little said. “There is clear evidence that having drug-checking services at festivals ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Expanded vaccination order for health and disability, education and prison workers
    A newly-signed Order means most people working in three key sectors will very soon need to be vaccinated against COVID-19 for the sake of themselves, their workmates and their communities, COVID-19 Response Minister Chris Hipkins has confirmed. The extended COVID-19 Public Health Response (Vaccinations) Amendment Order 2021 comes into effect ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • APEC finance ministers focus on inclusive, sustainable COVID recovery
    APEC finance ministers will continue to work together to respond to the effects of COVID-19 and ensure a sustainable and inclusive recovery while capitalising on the opportunity to build a more resilient future. The New Zealand Minister of Finance and Deputy Prime Minister Grant Robertson chaired the virtual APEC Finance ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Improvements to child and maternity facilities at Timaru Hospital on track
    Improvements to child and maternity facilities at Timaru Hospital are well underway, and the next stage of the project will begin next month. Health Minister Andrew Little visited Timaru Hospital today to view progress onsite. “The improvements are part of South Canterbury DHB’s four-year refurbishment project and will create a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt responds to independent review into WorkSafe
    The Government has clear expectations that WorkSafe must action the recommendations of the independent review into the regulator to improve its management of adventure activities following the tragedy at Whakaari White Island, Workplace Relations and Safety Minister Michael Wood says. The Ministry of Business Innovation and Employment (MBIE) today released the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prevention funding to reduce tamariki in care
    A new iwi-led prevention programme will receive funding from Oranga Tamariki to help reduce the number of tamariki and rangatahi coming into state care, Children’s Minister Kelvin Davis has announced. Te Rūnanga o Ngāi Tahu (Te Rūnanga) will receive $25.9m of Oranga Tamariki funding over three years to improve outcomes ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Transforming New Zealand’s mental health legislation
    Public consultation is now open for Aotearoa New Zealand to have a say on the repeal and replacement of the Mental Health (Compulsory Assessment and Treatment) Act 1992. “’He Ara Oranga, the report of the Government Inquiry into Mental Health and Addiction’ made it clear that we needed to replace ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 Protection Framework
    Kia ora koutou katoa Today I’m speaking directly to all New Zealanders to share a plan that will help us stay safe from COVID-19 into the future. A future where we want to continue to protect people’s lives, but also to live our lives – as safely as possible. Our ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Business boost to transition to new COVID framework
    We know that over the last twenty months the approach New Zealand has taken to COVID and Delta has saved lives and livelihoods. Along with one of the lowest mortality rates in the world, we have also had strong economic growth, low unemployment and one of the lower levels of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 funding boost to protect maōri communities
    Tēnā koutou katoa As you have heard from the Prime Minister, the new protection framework will support us to keep people safe especially our vulnerable communities and minimize the impact COVID-19 has on business and our day to day lives. If you want to protect yourself, your whanau and your ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New COVID-19 Protection Framework delivers greater freedoms for vaccinated New Zealanders
    New COVID-19 Protection Framework provides pathway out of lockdown and ability for businesses and events to re-open to vaccinated New Zealanders Simpler framework to minimise cases and hospitalisations without use of widespread lockdowns Auckland to move into the new framework when 90 percent of eligible population in each of the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New fund to accelerate Māori vaccinations
    The Government has established a $120 million fund to accelerate Māori vaccination rates and support communities to prepare for the implementation of the new COVID-19 Protection Framework. The new Māori Communities COVID-19 Fund will directly fund Māori, Iwi, community organisations and providers to deliver local vaccination initiatives for whānau, and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government extends hardship assistance for low income workers
    Income limits for Hardship Support through the Ministry of Social Development have been temporarily lifted so more people can recieve assistance. “Cabinet has agreed to make it easier for low income workers to recieve assistance for items such as food and other emergency costs,” Carmel Sepuloni said. “We know the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • More support for learners with highest needs
    Students most in need of extra help in the classroom are the focus of a new review that gets under way today, Associate Education Minister Jan Tinetti says. About 50,000-80,000 children and young people are expected to benefit from a Ministry of Education review into Highest Need Learners that will ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Parts of Waikato to stay at Alert Level 3 for next six days
    The parts of Waikato that have been in Alert Level 3 will remain at that alert level till Wednesday, COVID-19 Response Minister Chris Hipkins said today. “Based on the latest public health information, maintaining level 3 in those parts of the Waikato continues to be the most prudent course of ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Hon Peeni Henare September 2021 Proactive Diary Release
    ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ passes world-first climate reporting legislation
    New Zealand has become the first country in the world to pass a law that will ensure financial organisations disclose and ultimately act on climate-related risks and opportunities, Commerce and Consumer Affairs Minister Dr David Clark and Climate Change Minister James Shaw today announced today. The Financial Sector (Climate-related Disclosures ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Prime Minister NZ UK FTA opening remarks
    Tēnā koutou katoa. Ngā mihi nui ki a koutou katoa. I am delighted to announce today that following a conversation with Prime Minister Johnson last night, New Zealand and the United Kingdom have Agreed in Principle a historic high-quality, comprehensive and inclusive free trade agreement. I’m joined today by the Minister ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand secures historic free trade deal with the United Kingdom
    A boost of almost $1 billion to New Zealand GDP, unprecedented access for New Zealand exporters to the UK market UK to eliminate all tariffs on New Zealand exports, with over 97% being removed the day the FTA comes into force NZ exporters to save approx. $37.8 million per year ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Quarterly benefit numbers show more people in work
    Benefit figures released today show a year on year fall of 9,807 people receiving a Main Benefit in the September Quarter.  “The Government is working hard to tackle COVID-19 and it is clear our strong response to the initial outbreak has created a resilient labour market which is providing opportunities ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Health reforms bill introduced to Parliament
    Legislation central to fixing the health system has been introduced into Parliament by Health Minister Andrew Little. “Rebuilding the public health system is critical to laying the foundations for a better future for all New Zealanders,” Andrew Little said. “We need a system that works for everybody, no matter who ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NCEA and NZ Scholarship Exams to proceed
    NCEA and New Zealand Scholarship exams will proceed, including in areas where Alert Level 3 has been in place, Education Minister Chris Hipkins said today. “The New Zealand Qualifications Authority, Ministry of Education and Ministry of Health have been working together to ensure exams can be managed in a safe ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Limited change to onsite learning – for senior secondary students – in Level 3 regions
    Onsite learning at schools in Level 3 regions will start from next week for senior secondary school students to prepare for end of year exams, Education Minister Chris Hipkins said today. “Secondary schools in these regions will start onsite learning for years 11 to 13 on Tuesday 26 October,” Chris ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Guaranteed MIQ spots for health workers
    The Government is changing the way managed isolation is co-ordinated for health workers, guaranteeing 300 spots a month for the health and disability sector. “Our world-class workforce is vital in rebuilding the health system and dealing with the COVID-19 pandemic,” Andrew Little said. “Whether it’s bringing doctors or nurses in ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt helps to protect New Zealanders digital identities
    Making it easier for New Zealanders to safely prove who they are digitally and control who has access to that information is one step closer to becoming law, Minister for Digital Economy and Communications, Dr David Clark said. The Digital Identity Services Trust Framework Bill passed its first reading today ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Red tape cut to boost housing supply
    New building intensification rules will mean up to three homes of up to three storeys can be built on most sites without the need for a resource consent New rules will result in at least 48,200 and as many as 105,500 new homes built in next 5-8 years Bringing forward ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Nationwide business partnership grows conservation jobs
    Further Government support for New Zealand’s longest-standing sustainable business organisation will open up opportunities for dozens of workers impacted by COVID-19 to jump start a nature-based career, Conservation Minister Kiri Allan says. Partnering to Plant Aotearoa, led by the Sustainable Business Network (SBN), is a collaboration with iwi, hapū and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand increases climate aid contribution
    Government commits $1.3 billion over four years to support countries most vulnerable to the effects of climate change At least 50 percent of funding will go to the Pacific as it adapts to the impacts of climate change The increase means New Zealand now meets its fair share of global ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Super Māori turnout for Super Saturday
    Māori have put a superb effort into mobilising to get vaccinated over Super Saturday, with thousands rolling up their sleeves to protect themselves, their whānau and communities from COVID-19, Associate Health Minister Peeni Henare says. “It was absolutely outstanding that 21,702 Māori got vaccinated on this one day alone with 10,825 ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Language assists Tagata Niue to thrive
    Despite the uncertain times we face with the challenges of COVID-19, our cultural knowledge, values and language remain constant, helping us progress towards goals in life, said  the Minister for Pacific Peoples Aupito William Sio. This year, the Niuean community in New Zealand decided on the theme, “Kia tupuolaola e ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand Ambassador to France announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Caroline Bilkey as New Zealand’s next Ambassador to France and the OECD. “Aotearoa New Zealand and France have a shared history, and enjoy a strong, collaborative partnership. This includes a strong trade and economic relationship, a shared commitment to support ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt welcomes nurses’ pay settlement
    The Government is welcoming news that a new employment agreement for nurses working in public hospitals has been settled. “I am very pleased that the hard work of the Nurses Organisation and District Health Boards has led to a settlement that both can support,” Health Minister Andrew Little said today. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Judge of the High Court appointed
    Māori Land Court Judge Layne Harvey has been appointed a Judge of the High Court, Attorney‑General David Parker announced today. Justice Harvey graduated with an LLB from the University of Auckland in 1992 and commenced employment as a law clerk with Simpson Grierson in Auckland that same year. In 1997 ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kiwis to have their say on plan to reduce waste
    New Zealanders are invited to have their say on proposals for a new waste strategy and options for new waste legislation. “Reducing waste is one of the issues all New Zealanders – especially younger Kiwis - care deeply about,” Environment Minister David Parker said today “New Zealand is one of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Next steps in action plan for indigenous rights kicks off
    Minister for Māori Development Willie Jackson has today meet with more than 30 national Māori organisations in an online hui, kicking off the process to develop a plan for New Zealand to implement the United Nations Declaration on the Rights of Indigenous Peoples (the Declaration). The previous National Government signed ...
    BeehiveBy beehive.govt.nz
    2 weeks ago