web analytics

GST hike = tax cut for rich only

Written By: - Date published: 11:49 pm, March 14th, 2010 - 50 comments
Categories: gst, tax - Tags: , , ,

John Key on the coming tax money go round:

“it will make the bulk of New Zealanders either better off or a lot better off, and on a straight GST income tax no one will be worse off”

The tax changes leaked to the Sunday-Star Times:

  • GST up to 15%
  • $0-$14,000 bracket from12.5% to 10%
  • $14,000-$48,000 bracket from 21% to 19%
  • $70,000+ bracket from 38% to 33%
  • Some kind of tax tightening for landlords (expected to be partially passed on in rents)

Using these numbers, the IRD’s table of income distribution, and tables in the Tax Working Group’s report that shows how much of their income people pay on GST at different incomes, I’ve worked out the net reduction (or increase) in tax at different income levels:

While it’s good that the poor haven’t been ignored entirely (and I think the campaign by the Left can claim that victory) they’re getting the barest of compensation, a few cents a week assuming typical GST bills. Even up to $47,000, more than what 2.6 million taxpayers earn, the net tax cut is just $3 a week.

Higher income workers, from about $57,000 to $83,000 fare even worse – their increased GST bill outweighs their income tax cut because there’s no reduction to the 33% rate and they end up worse off.

So, are “bulk of New Zealanders either better off or a lot better off, and on a straight GST income tax [none] worse off”? No. 10% get a net tax increase and 80% of taxpayers get a net reduction of piddling size that will be overwhelmed for many by rent hikes.

Remember these numbers don’t (can’t) account for rent increases due to the changes in property tax. I support discouraging over-investment in housing but there needs to be compensation for renters, and less than $3 a week at best simply won’t cut it.

The real money, as was always National’s intention, goes to the rich. The total net tax cut for the 22,000 wealthiest taxpayers is over $200 million – more than the total for the poorest 2.5 million. Put it another way, for every dollar net tax cut the typical Kiwi gets the elite will get over $100. And they’re not likely to have to use that money (and more) to cover higher rent.

This is all nothing but a complicated way of taking money out of the pockets of working Kiwis and putting it in the pockets of the wealthy. No-one thinks that these tax changes will increase growth but they will increase inequality.

The whole idea of increasing GST should be scrapped and the housing tax reforms used to compensate low income New Zealanders first. But I don’t see that happening. The whole point of the exercise for National is to further enrich the wealthy at the cost of everyone else.

50 comments on “GST hike = tax cut for rich only ”

  1. Jim Nald 1

    With the GST trojan horse, National sets up NZ to enter the new decade with a huge wealth transfer to the rich 🙁

    • Lanthanide 1.1

      I said at the time of the last budget when they “postponed” the proposed taxcuts that actually what they were planning was tax reform, not tax changes.

      And what-do-ya-know, National’s tax cut response to Labour’s (that already favoured the wealthy wtih 39%->37% top rate reduction) clearly wasn’t what their constituency wanted, so they used this sham of the then-current plans being ‘postponed’, so they could be conveniently forgotten about and replaced with something that, if they’d originally proposed, they wouldn’t have been elected for (not when compared to Labour’s much more realistic plans).

      Hopefully NZ will wake up and kick them out at the first possible chance for this duplicitous PR scheme.

  2. Bored 2

    This is what your common Joe aspired to at the last election, and according to the polls still favours. Consequently my sense of outrage is somewhat muted, its the price to be paid by the common man for voting in this bunch of scumbags.

    Marty, on another note, “elite”…..being rich is one thing, they are not however the “elite”, it gives them a status thoroughly undeserved, please desist..

    • prism 2.1

      Oh to have that undeserving status, I must buy a Lotto ticket it’s my only chance of joining the elite, can’t do it any other way.

    • Clarke 2.2

      This is what your common Joe aspired to at the last election, and according to the polls still favours.

      There does seem to be solid and incontrovertible evidence that turkeys do actually vote for Christmas.

  3. tc 3

    Muldoon would be proud and envious of the msm doting and fawning over them into the bargain.

  4. Jenny 4

    “This is all nothing but a complicated way of taking money out of the pockets of working Kiwis and putting it in the pockets of the wealthy.”

    Marty, couldn’t agree more. Indeed GST since it’s introduction by Sir Roger Douglas was designed that way, and just as this subsequent increase in GST will, as you say “increase inequality” so did it’s inception.

    I see that you think that “The whole idea of increasing GST should be scrapped”. I and probably a lot of others would go further in thinking that GST should be scrapped altogether, and replaces with something like a FTT. Of course I realise that the Labour Party is deeply wedded to continuing GST.

    But how about this idea:

    http://unityaotearoa.blogspot.com/2010/03/hey-labour-mps-why-not-support-gst-off.html

  5. Good graph Marty. Crumbs for the poor and cake for the rich, again.

  6. Nice analysis Marty, but something doesn’t quite add up in the original SST article.

    I suspect, looking at the NZIER graph, that the SST neglected to spell out that the $48,000-$70,000 bracket would also fall under this option, to 30%. (I guess we’ll find out for sure when the NZIER report comes out this week whether that is what they did their modelling on.)

    • Marty G 6.1

      bugger, that’s just in the physical version is it?

      That would get rid of that negative patch but increase the cost a lot, and the bulk of the money would still be going to the wealthy.

      • Bright Red 6.1.1

        Nah, you’re right mate. There’s nothing in the physical version about cutting the 33% rate.

        The graphic is a real hash, claiming that you’ll get the same net tax cut at any point over income ranges – $100K and $145K for example. Clearly wrong to anyone who thinks about it even for a moment.

  7. The graphic is from NZIER, which doesn’t mean it’s automatically right but suggests there’s probably some sort of logic to it. My read of it is that the figures are supposed to be the average across each of the income bands they’ve given. Not sure that’s the clearest way to communicate this information but it does make at least some sort of sense.

    If you take (crudely) the mid-points of each income band and throw in the 30% rate, then the tax cut figures do seem to add up. (But Bright Red IS correct – the ‘Source’ doesn’t say anything about 30% – hmm . . . )

  8. Lanthanide 8

    “While it’s good that the poor haven’t been ignored entirely (and I think the campaign by the Left can claim that victory) ”

    No, because on the day of National’s speech, Key was on Campbell Live and said “tax cuts across the board”, so this was the plan all along.

    You’ve made multiple posts where he made comments afterwards that implied tax cuts wouldn’t be given to those on the lowest incomes (and each time I asked you to give a source for this, but you never did – some other poster tangentially answered that for me), but the fact stands that on national television on the day of the speech he said that tax cuts would be “across the board”, when directly asked by Campbell. I know Key flip-flops on a lot of things, but that’s not the sort of statement you turn back on lightly.

  9. Sookie 9

    I don’t get the lack of a cut to the 33% rate. Most middle income people, ergo a good chunk of National voters, get clobbered by the 48K to 70K rate. Surely it would be politically stupid to make these people pay more in tax through the GST hike? There are not enough rich pricks (thanks Cullen) to vote National in by themselves. There must be plans for some kind of cut to that rate, surely?

  10. TightyRighty 10

    the line you have imposed on the graph could equally be the same line if the graph measuered tax burden, and the line represented the impact of said burden if tax was raised. with a marginal tax system this is what you get. proportionality. this is hard to understand i know, but those who pay progressively more tax, get progressivley better off from tax reductions, because they pay more tax anyway. in a nutshell, if you don’t pay much tax, then you don’t stand to gain much. if you pay lots of tax, then you gain significantly more. the only real way to help the very lowest decile, is to increase welfare transfers. which helps nobody really.

    • lprent 10.1

      There is a much simpler way. Just cut the tax rate on the lowest tax bracket.

      It benefits every taxpayer without the ratchet effect you describe in the upper brackets. More importantly it reduces the direct tax burden on those who are least able to afford GST increases.

      • Lanthanide 10.1.1

        Or, alternatively, if you want to throw a little extra cash to those in the upper brackets (to encourage them to stay in NZ, or “invest in NZ” or whatever today’s slogan is), you can move the brackets upwards without changing their rate. This allows you to control exactly how much the people at the top gets and ensures that no one is taking tax cuts worth hundreds of dollars a week when the ‘average’ NZer is getting maybe $5-10 if they’re lucky.

        Everyone understands that cutting the rates will help those with the most money, but to imply that there is no other choice is simply disingenuous (or ignorant), TightyRighty.

        • Bright Red 10.1.1.1

          yeah, you should move brackets if you’re going to do anything, I think. The cost is set (doesn’t increase with inflation) and the cut is not open-ended.

        • TightyRighty 10.1.1.2

          i didn’t imply that, but take from what i said what you will. putting words in other peoples mouths is more disingenuous.

      • TightyRighty 10.1.2

        i’m actually more in favour of a tax free band, but i know what you are saying. it won’t however fix the distortions at the top end of the scale. moving the brackets as mentioned below will help that further, though the marginal tax system is the real problem. a flat tax system is the fairest way of fixing the current distortions. and if government could make do with less, then it is acheivable.

        • Pascal's bookie 10.1.2.1

          and if government could make do with less

          It’s not the government TR. It’s the people. They won’t vote for politicians that promise to make big enough cuts to services. They like those services.

          That’s why ‘tax cutting’ politicians campaign on ‘efficiency’ and ‘cutting the fat’. The fact that there is precious little fat to cut, and that there are no major efficiency gains to be made, mean that tax cutting pollies either don’t make substantial cuts (but rather just shift the burden downwards) or run up big deficits.

          • gitmo 10.1.2.1.1

            I dunno about the assertion that there’s precious little fat to cut.

            If you look at the growth in public spending increased quite dramatically (40-65 billion 2003-09) – even though there are some areas of public spending that have been maintained at a a very low level of growth during the same time period, certainly some of that spending has been prudent rainy day stuff – kiwisaver and cullen fund. But there has also been what I consider some crazy stuff that will come back to bite us and the politicians in the future such as WFF,ACC and lack of copayments by the public in health being too generous in my opinion and then there’s the anecdotal stuff that all of us dealing with the public sector and QANGOs have seen over the last couple of decades.

            • Pascal's bookie 10.1.2.1.1.1

              If the fat was there then it would of easily been found in the line by line reviews, trumpeted to high heaven, and cut to pay for meaningful tax cuts north of fifty dollars a week.

              The other things you mention, WFF etc, are policy choices. They are not ‘fat’ in the sense of spending you can eliminate without affecting services.

              In a sense, you’re exactly who the ‘trim the fat’ rhetoric is aimed at. You just interpret all your personal policy dislikes as ‘fat’ and assume that’s what they are talking about. If a government wanted to save money by eliminating that type of ‘fat’ though, they could just cmapign on eliminating the policy. But then they wouldn’t win because, as I said, too many people like those policies.

              • gitmo

                Too many people like getting things for free that we cannot afford…… yes I agree with you there. Both National and Labour have made a rod for their own backs over a few decades creating a population that has no notion of the cost of what is provided to them and an unwillingness to have a lessening of public support/control over their lives.

                This has lead to rather timid government unwilling to make the slow incremental changes where they probably need to.

              • Pascal's bookie

                But that’s not what I said.

              • Pascal's bookie

                (missed the edit window in reply to your new and improved comment)

                People like the services yes, and they won’t vote for cutting them. Left wing governments that support those services are put in the position of having to explain how they are going to pay for them. You get things like 99, where Labour campaigned on raising income tax to pay for things.

                Right wing governments hate taxes, and promise to cut them, but find that campaigning on cutting services gets them nowhere, so they tell lies, and make up silly stories about Laffer curves and what not.

                At the end of the day, they either cut taxes and services, (and get thrown out of office), cut taxes without cutting services, (and run huge deficits) or don’t cut taxes, (but shift the burden downwards to reward their mates).

              • TightyRighty

                could you please explain how cutting wff will result in service reductions? i know you say it is a policy choice, but i seem to remember labour never campaigned on introducing it. once that choice has been made, then of course it is electorally difficult for national to scrap. even if it was scrapped in favour of only reducing the tax burden for those people in the applicable tax bands, labour and the left would find a way to make it seem like it’s “benny bashing”.

                this is despite the fact that wff is a discriminatory tax and spend policy. it discriminates against the homosexual portion of society, the single portion of society, and the couples who choose not to have children for whatever reason, and couples who can’t due to health reasons. these people are taxed to provide benefits for those who choose, or or don’t choose to breed. the intro to the movie idiocracy shows the long term benefits of this.

              • Pascal's bookie

                It’s a service reduction because it’s cutting a ‘service’ provided by the govt.

                I’m defining service here as bassically anything the govnt does as a policy. It’s to differentiate between cutting taxes by having the government actually do less stuff, and having them cut taxes by doing the same stuff but more effeciantly.

                The latter story is the one right wing parties tell because, apparently too many people like the services more than they hate the taxes.

                Your peronal objections to the policy don’t change this. If the argument could be won on those grounds, then presumably it would be. But as it happens, people would seem to rather pay the tax than cut the sevices when the options are honestly put to them.

              • Lanthanide

                “it discriminates against the homosexual portion of society”

                I don’t know why you chose to separate out homosexual people from ‘singles’ or ‘the couples that choose not to have children for whatever reason’. Many gay people do have children.

              • TightyRighty

                what service though pascal? giving money to people based on their family status? that’s government largesse (vote-buying, pork barrel politics). it’s not a provided service like education, health, roads etc. so how would cutting it reduce services?

                defining policy as services is a long bow to draw. the governments review of mining land could reduce the tax burden on individuals, while maintaining the same level of services. is this a service? no, it’s policy, and on this site an unliked one. i don’t think i have phrased what i mean that well, but mondayitis has just hit.

                lanthanide, there are gay people with children, but i don’t think they are “many”. i’m pointing out that they are a section of society discriminated against by wff.

              • gitmo

                Taking the health system as an example we have a single purchaser of non hospital pharmaceuticals and like them or hate them spending growth has been very well constrained compared to most of our trading partners, but we have numerous DHBs and well over a hundred purchasing personnel within our hospitals where budgets are in tatters and spending is growth (some justifiably) is growing quite fast.

              • Pascal's bookie

                Good example.

                There are lots of costs in health. Correct me if I’m wrong but most (or at least a very large chunk) of the growth has been in wages. It’s also highly political, in that people care about it a lot, and care not only about how much service they get, but how it’s delivered.

                It’s easy for a govt to point at it and say “Ooh lookie lots of costs, and growth in costs, therefore there must be fat which we can cut to give you a tax cut”.

                I’m not denying that, as per your bugbear, there is a lot of duplicated services and what not that could possibly be eliminated to get some savings. But it’s not that simple.

                Firstly, most of the growth in costs comes from wages, new types of treatments, and new technologies. The savings that can be made through eliminating duplicated backroom (or frontroom) services aren’t really big enough to get you the sort of cash needed to pay for meaningful tax cuts.

                Secondly, a lot of the ‘inefficiency’ and what not associated with duplicated services is an unavoidable by product of how people like their healthcare to be delivered. People like their local hospitals, and like there to be as much local control of it as they can get. That means a higher cost to the whole system. It may not make sense, you and I might personally prefer the teeny tax cut we could get from centralising things, but that’s our bad luck. We either have to win the argument about centralisation, or stop promising the teeny tax cut.

                Some right wingers though, just pretend that tax cuts can eventuate without cost to the way people clearly want their government to operate (pun alert!), which is fundamentally dishonest. that’s what all this ‘trim the fat’ nonsense is about.

                Bullshitting the public that there really is a free lunch.

          • Pascal's bookie 10.1.2.1.2

            I think what I mean is fairly clear from the first comment TR.

            You can quibble away if you like, but it doesn’t change the fact that to cut taxes by any great deal, a government will need to cut spending.

            That spending is on things, so they will need to cut back on things they provide (or do, like income transfers). This is apparently not very easy to do if you want to retain political power, even though it allows you to cut taxes.

            ergo…. people prefer to have the government doing those things over tax cuts.

            • TightyRighty 10.1.2.1.2.1

              only people who stand to benefit from said things. if you bribe the voter, it’s very hard to get you’re bribe back. thats all it is. i see no one has still managed to adequately explain how a discriminatory tax package like wff can be seen as a progressive thing. and remember before bleating to long and loud about how this tax package makes people worse off, wff has made anyone who doesn’t qualify for wff worse off, as that is a tax cut they could have had themselves. it cuts both ways.

              • Pascal's bookie

                Obviously not everyone agrees about what things the government should do TR. But we have a system of government to decide who gets to say what gets done, and that system, at the moment, has the dynamic as I’ve described it.

                If you know of a better way of deciding what policies to follow, feel free to share it, but at the mo’ your response is just bleating about democracy.

                Tax cuts are also ‘bribes’, but people seem on aggregate to prefer the other ‘bribe’. Hence rightwing bs about ‘trimming the fat to provide a free lunch’.

        • lprent 10.1.2.2

          Fix the major distortions by pushing their tax rates into conformance – upwards.

          If you want a flat tax – make it a higher flat tax. Then you don’t have to cut services. Frankly people who think that there is a lot of fat (ie sufficient to massively reduce the expenditure a lot) in the provision of government services are dreaming. Pretty much everything is there for a reason. So to be able to radically reduce the size of government expenditure you have to reduce the services.

          I’d suggest that you start by looking at cutting the provision of superannuation and see how far you get. It is the biggest single cost in the system, and one of the ones that is growing the fastest with an aging population. The bill in that would have to be substantially reduced to achieve what you’re talking about.

          Of course you have this interesting retroactive problem of people having planned for decades on receiving superannuation. National based their super system on people providing provision of taxes to fund their parents super. Of course we could simply maintain taxes on the young to fund the current super system, while forcing them to provide for their own super. But somehow I don’t think that will work politically.

          Quite simply what you’re describing are bullshit pipedreams

  11. prism 11

    Looking at the tax steps – why would the 10% one stop at $14,000. People who earn as little as this are on really low wages. So take the 10% to $25,000 (always remembering that there is also GST to come off the PAYE taxed income). The consumer tax should push down the amount that lower income taxpayers are charged for PAYE.
    Next could be $25 – 50,000 at 20% – why not have tax in 5’s or decades, easy to calculate and straightforward.
    Then $50,000 – $100,000 at 25%
    $100,000-$300,000 at 33%
    over $300,000 at 40% – if there is anyone receiving this in salary.
    The re-arrangement of personal finance to trusts etc might result in lesser amounts but should still incur 33%. Getting a good amount of tax from the wealthy is the important thing, not whether they reallocate some to save a few percentage points.
    And finally each year allow for inflation. Let’s have some intelligence and certainty in tax and stop it becoming an election issue when it becomes so out of kilter because of lack of indexing. The tax percentages would remain the same the income steps each year would change allowing for inflation, to the nearest decade figure.

    • Lanthanide 11.1

      “The re-arrangement of personal finance to trusts etc might result in lesser amounts but should still incur 33%.”

      Except the current re-arrangement is to take someone on a salary greater than $70k and put them under $70k so they pay 33%. On the scale you’ve outlined, $70k will pay 25%, not 33%.

      Edit: Brainwave after I posted this: the tax-avoidance rate is based on the trust rate, which is currently 33%, so you are correct.

      • prism 11.1.1

        If I was right it was by accident Lanthanide. I have not been following all the moves exactly, just threw in what seemed like a reasonable homemade working tax vehicle (without going through extensive design stages, wind tunnel effects etc).

        The main thing that I think would help is to have the brackets inflation-adjusted I thing actually bienially (every 2 years) would be better and this would stop bracket creep into higher tax rates. It seems to me like kindergarten maths but then perhaps I am too simple to understand the awful complexities involved in this.

  12. felix 12

    Woohoo!! Told you my mate Mr Key would be able to deliver a “north of $50 a week” tax cut. And you all said he wouldn’t. So who’s looking stupid now eh?

    I mean sure, you need to bring in $180,000 a year to get it but just get off your arse and be a bit more ambitious whydontcha? Either up-skill or learn how to trade currency and you’ll be claiming your “north of $50 a week” in no time.

    And when I say “in no time” of course I mean “in quite some time”. Or “at no time” depending who’s asking. What time is it in Australia? Stop confusing me. North of $50 a week!!! YEAAAH!!!

  13. Herodotus 13

    So, are “bulk of New Zealanders either better off or a lot better off, and on a straight GST income tax [none] worse off’? No. 10% get a net tax increase and 80% of taxpayers get a net reduction of piddling size that will be overwhelmed for many by rent hikes.
    You should refer to red Alert and Trev M
    blog.http://blog.labour.org.nz/index.php/2010/03/11/a-big-group-that-will-be-worse-off-following-the-tax-cuts/
    You like him are play politics with this comment. You are mixing 2 policies and like him (I take it for me ) accept the assumption that Govt subsidise land owners and are willing for this to happen and that tax treatment for rentals will be kept?
    If that is the case for me then there will be no real review of the tax system and especially in this area, as you are scared of land owners. If so then how can anything bold happen. You are willing to let the rich take away money from PAYE earners?

  14. SPC 14

    Bill English on the budget this year.

    http://www.stuff.co.nz/national/politics/3439334/Public-sector-on-noti ce-for-Budget

    Notable for the first suggestion that there may be incentives to encourage/reward saving included
    to balance out the GST increase discouragement to spending. Which is sensible and so it’s about time this was included …. but what does he actually mean?

    The concept of a shift from consumption to saving would normally involve an increase in consumption tax (with compensation to those who cannot afford to save) and cuts to tax on investments for those who could afford to save.

    Thus not a cut in the top rate, but a reduction in tax on investment income (perhaps by reducing interest income by half – the inflation component – before it was taxed) and otherwise small business loan insurance (so banks will lend beyond the household property of the business owner) and R and D tax incentives.

    I suspect however the government is of a certain ideological bent called trickle down where those on higher incomes get reduced taxes on the presumption that they will invest the money in ways
    beneficial to the wider economy – in the real world we will note the school zone and beachfront property bidding war will heat up.

  15. SPC 15

    Reward the strong, punish the weak, and call it setting the right market incentives for the strong to flourish and the weak to perish.

    http://www.stuff.co.nz/dominion-post/opinion/3438769/No-justification-for-cutting-the-pulse-of-the-nation?comment_msg=posted#post_comment

  16. ropata 16

    WFF = allowing working couples to mortgage themselves to the hilt and get the rest of society to pay for their asset accumulation

  17. godard 17

    …And then keep in mind that whatever tax cut you do get will have to be spent on all of the social services that get cut in the next 12 months.

Links to post

Recent Comments

Recent Posts

  • Face to face meeting delivers significant progress on NZ-UK FTA
    New Zealand and the UK have committed to accelerating their free trade agreement negotiations with the aim of reaching an agreement in principle this August, Trade Minister Damien O’Connor announced. “We’ve held constructive and productive discussions towards the conclusion of a high-quality and comprehensive FTA that will support sustainable and inclusive trade, and ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Government taking action to protect albatross
    New population figures for the critically endangered Antipodean albatross showing a 5 percent decline per year highlights the importance of reducing all threats to these very special birds, Acting Minister of Conservation Dr Ayesha Verrall says. The latest population modelling, carried out by Dragonfly Data Science, shows the Antipodean albatross ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Adoption laws under review
    New Zealand’s 66-year-old adoption laws are being reviewed, with public engagement beginning today.  Justice Minister Kris Faafoi said the Government is seeking views on options for change to our adoption laws and system. “The Adoption Act has remained largely the same since 1955. We need our adoption laws to reflect ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Wider roll-out of cameras on boats to support sustainability and protect marine life
    Up to 300 inshore commercial fishing vessels will be fitted with on-board cameras by 2024 as part of the Government’s commitment to protect the natural marine environment for future generations.  Minister for Oceans and Fisheries David Parker today announced the funding is now in place for the wider roll out ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Plan for vaccine rollout for general population announced
    New Zealanders over 60 will be offered a vaccination from July 28 and those over 55 from August 11, Prime Minister Jacinda Ardern announced today. The rollout of the vaccine to the general population will be done in age groups as is the approach commonly used overseas, with those over ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Zealand introduces Belarus travel bans
    New Zealand has imposed travel bans on selected individuals associated with the Lukashenko regime, following ongoing concerns about election fraud and human rights abuses after the 2020 Belarus elections, Foreign Affairs Minister Nanaia Mahuta has announced. The ban covers more than fifty individuals, including the President and key members of ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • NZ economy grows driven by households, construction and business investment
    The Government’s efforts to secure the recovery have been reflected in the robust rebound of GDP figures released today which show the economy remains resilient despite the ongoing impact of the COVID-19 pandemic, Grant Robertson said. GDP increased 1.6 percent in the first three months of 2021. The Treasury had ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Milestone 250th tower continues to improve rural connectivity
    The Government has welcomed the completion of the 250th 4G mobile tower, as part of its push for better rural connectivity. Waikato’s Wiltsdown, which is roughly 80 kilometres south of Hamilton, is home to the new tower, deployed by the Rural Connectivity Group to enable improved service to 70 homes ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Quarantine Free Travel pause with Victoria to lift on Tuesday
    Following a further public health assessment of the COVID-19 outbreak in greater Melbourne, New Zealand’s Quarantine Free Travel pause with Victoria has been extended to 11.59pm on Tuesday 22 June, COVID-19 Response Minister Chris Hipkins says. It has been determined that the risk to public health in New Zealand continues ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Prime Minister mourns passing of Dr Sir Ian Hassall
    Prime Minister Jacinda Ardern is mourning the passing of Dr Sir Ian Hassall, New Zealand’s first Children’s Commissioner and lifelong champion for children and children’s health. As a paediatrician Sir Ian contributed to a major world-first cot death study that has been directly credited with reducing cot deaths in New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • APEC structural reform meeting a success
    APEC ministers have agreed working together will be crucial to ensure economies recover from the impact of COVID-19. Minister of Commerce and Consumer Affairs David Clark, chaired the virtual APEC Structural Reform Ministerial Meeting today which revolved around the overarching theme of promoting balanced, inclusive, sustainable, innovative and secure growth ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Digital hub to boost investment in forestry
    A new website has been launched at Fieldays to support the forestry sector find the information it needs to plant, grow and manage trees, and to encourage investment across the wider industry. Forestry Minister Stuart Nash says the new Canopy website is tailored for farmers, iwi and other forestry interests, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government continues support for rangatahi to get into employment, education and training
    Over 230 rangatahi are set to benefit from further funding through four new He Poutama Rangatahi programmes, Minister for Social Development and Employment Carmel Sepuloni announced today. “We’re continuing to secure our economic recovery from COVID by investing in opportunities for rangatahi to get into meaningful employment, education or training ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NCEA subjects up for consultation
    The education sector, students, their parents, whānau and communities are invited to share their thoughts on a list of proposed NCEA subjects released today, Education Minister Chris Hipkins says. This is a significant part of the Government’s NCEA Change Programme that commenced in 2020 and will be largely implemented by ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Major investment in plantain forage programme aims to improve freshwater quality
    The Government is backing a major programme investigating plantain’s potential to help farmers protect waterways and improve freshwater quality, Acting Agriculture Minister Meka Whaitiri announced at Fieldays today. The Sustainable Food and Fibre Futures (SFFF) fund is contributing $8.98 million to the $22.23 million seven-year programme, which aims to deliver ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • America’s Cup decision
    The Minister responsible for the America’s Cup has confirmed the joint Crown-Auckland Council offer to host the next regatta has been declined by the Board of Team New Zealand. “The exclusive period of negotiation between the Crown, Auckland Council, and Team New Zealand ends tomorrow, 17 June,” said Stuart Nash. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Food and fibres sector making significant strides towards New Zealand’s economic recovery
    The Government is backing the food and fibres sector to lead New Zealand's economic recovery from COVID-19 with targeted investments as part of its Fit for a Better World roadmap, Forestry Minister Stuart Nash said. “To drive New Zealand’s recovery, we launched the Fit for a Better World – Accelerating ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to He Whenua Taurikura – New Zealand’s annual hui on countering terrorism and violent...
    Check against delivery Can I begin by acknowledging the 51 shuhada, their families and the Muslim community. It is because of the atrocious violent act that was done to them which has led ultimately to this, the start of a dialogue and a conversation about how we as a nation ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Cost of Government Southern Response proactive package released
    The Government has announced the proactive package for some Southern Response policyholders could cost $313 million if all those eligible apply. In December, the Minister Responsible for the Earthquake Commission, David Clark announced a proactive package for SRES claimants who settled their claims before October 2014. It trailed the judgment ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New support to reduce emissions from public building and construction projects
    Government agencies are getting new support to reduce carbon emissions generated by construction of new buildings, with the release of practical guidance to shape decisions on public projects. The Ministers for Building and Construction and for Economic Development say a new Procurement Guide will help government agencies, private sector suppliers, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • He Whenua Taurikura: New Zealand’s first Hui on Countering Terrorism and Violent Extremism
    The Prime Minister has opened New Zealand’s first hui on Countering Terrorism and Violent Extremism, which is being held in Christchurch over the next two days. The hui delivers on one of the recommendations from the report of the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to inaugural Countering Terrorism Hui
    E aku nui, e aku rahi, Te whaka-kanohi mai o rātou mā, Ru-ruku-tia i runga i te ngākau whakapono, Ru-ruku-tia i runga i te ngākau aroha, Waitaha, Ngāti Mamoe, Ngai Tahu, nāu rā te reo pohiri. Tena tātou katoa. Ki te kotahi te kakaho ka whati, ki te kapuia, e ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Campaign shines a light on elder abuse
    A new campaign is shining a spotlight on elder abuse, and urging people to protect older New Zealanders. Launched on World Elder Abuse Awareness Day, the Office for Seniors’ campaign encourages friends, whānau and neighbours to look for the signs of abuse, which is often hidden in plain sight. “Research suggests ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Farewelling sports administrator and philanthropist Sir Eion Edgar
    Sport and Recreation Minister Grant Robertson today expressed his sorrow at the passing of Sir Eion Edgar – a leading sports administrator and celebrated philanthropist who has made a significant impact both within and beyond the sport sector. “Sir Eion’s energy, drive and generosity has been truly immense. He leaves ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government to apologise for Dawn Raids
    The Government will make a formal apology for the wrongs committed during the Dawn Raids of the 1970’s. Between 1974 and 1976, a series of rigorous immigration enforcement policies were carried out that resulted in targeted raids on the homes of Pacific families. The raids to find, convict and deport overstayers ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Humanitarian support for Bangladesh and Myanmar
    Foreign Affairs Minister Nanaia Mahuta today announced that New Zealand is providing NZ $8.25 million in humanitarian assistance to support refugees and their host populations in Bangladesh and to support humanitarian need of internally displaced and conflict affected people in Myanmar.  “Nearly four years after 900,000 Rohingya crossed the border ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Poroporoaki: Dame Georgina Kamiria Kirby
    E Te Kōkō Tangiwai, Te Tuhi Mareikura, Te Kākākura Pokai kua riro i a matou. He toka tū moana ākinga ā tai, ākinga ā hau, ākinga ā ngaru tūātea.  Haere atu rā ki te mūrau a te tini, ki te wenerau a te mano.  E tae koe ki ngā rire ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Feedback sought on future of housing and urban development
    New Zealanders are encouraged to have their say on a long-term vision for housing and urban development to guide future work, the Housing Minister Megan Woods has announced. Consultation starts today on a Government Policy Statement on Housing and Urban Development (GPS-HUD), which will support the long-term direction of Aotearoa ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Clean car package to drive down emissions
    New rebates for electric and plug-in hybrid vehicles start July 1 with up to $8,625 for new vehicles and $3,450 for used. Electric vehicle chargers now available every 75km along most state highways to give Kiwis confidence. Low Emission Transport Fund will have nearly four times the funding by 2023 ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Progress towards simpler process for changing sex on birth certificates
    The Government is taking the next step to support transgender, non-binary and intersex New Zealanders, by progressing the Births, Deaths, Marriages and Relationships Registration Bill, Minister of Internal Affairs, Jan Tinetti announced today. “This Government understands that self-identification is a significant issue for transgender, non-binary and intersex New Zealanders, and ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Crown speeds up engagement with takutai moana applicants
    The Crown is taking a new approach to takutai moana applications to give all applicants an opportunity to engage with the Crown and better support the Māori-Crown relationship, Treaty of Waitangi Negotiations Minister Andrew Little says. Following discussions with applicant groups, the Crown has reviewed the existing takutai moana application ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Alcohol and Other Drug Treatment (AODT) Court opens
    The Minister of Justice, Kris Faafoi, and the Minister for Courts, Aupito William Sio, have welcomed the opening of a new Alcohol and Other Drug Treatment (AODT) Court in Hamilton. The AODT Court (Te Whare Whakapiki Wairua) addresses situations where substance abuse and offending are intertwined. “New Zealanders have told ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • EU and UK FTAs top of list for first ministerial trip since COVID-19
    Trade and Export Growth Minister Damien O’Connor today announced details of his planned visit to the United Kingdom and European Union next week, where he will hold trade and agriculture discussions to further New Zealand’s economic recovery from COVID-19. The visit will add political weight to ongoing negotiations with both the EU ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Arihia Bennett to chair Royal Commission Ministerial Advisory Group
    Te Rūnanga o Ngāi Tahu chief executive Arihia Bennett MNZM has been appointed chair of the newly appointed Ministerial Advisory Group on the Government’s Response to the Royal Commission of Inquiry into the terrorist attack on Christchurch mosques. “Twenty-eight people from diverse backgrounds across Aotearoa have been selected for the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to the New Zealand Medical Association General Practitioners' Conference, Rotorua
    Ki ngā pou maha o te whare hauora o Aotearoa, kei te mihiTo the pillars of our health system I acknowledge/thank you Ki te ope hapai hauora o roto o tēnei rūma, kei te mihi To our health force here in the room today, I acknowledge/thank you He taura tangata, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Karangahape Road upgrades are streets ahead
    The upgrades to Karangahape Road makes the iconic street more pedestrian and cycle-friendly, attractive and environmentally sustainable, Transport Minister Michael Wood and Auckland Mayor Phil Goff said at the formal celebration of the completion of the Karangahape Road Enhancements project. The project included widening footpaths supporting a better outdoor dining ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to APEC business event
    E ngā tumu herenga waka, ākina ā ngaru, ākina ā tai ka whakatere ngā waka ki te whakapapa pounamu, otirā, ki Tamaki o ngā waka Tena koutou katoa… To the great leaders assembled, who guided your waka through turbulent times, challenging waters and you continue to navigate your respective waka ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pause on Quarantine Free Travel with Victoria extended
    Following an assessment of the COVID-19 outbreak in greater Melbourne, New Zealand’s Quarantine Free Travel pause with Victoria will continue for a further seven days, COVID-19 Response Minister Chris Hipkins says. There are now 93 cases associated with the outbreak in greater Melbourne, spread over four clusters. Contact tracing efforts ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supplier Diversity Aotearoa Summit: Navigate 2021
    *** Check with delivery *** A mihi to all who have contributed to making today a success – starting with you! As you have explored and navigated government procurement today you will hopefully have reflected on the journey of our people so far – and how you can make a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pukemiro School to close
    Pukemiro Primary School near Huntly will close following years of declining roll numbers, Education Minister Chris Hipkins announced today. “I’ve consulted with the School Commissioner, and this decision acknowledges the fact that the few remaining students from last term are now settled at other nearby schools. “I want to thank ...
    BeehiveBy beehive.govt.nz
    1 week ago