Income splitting – all bad?

Written By: - Date published: 11:41 am, August 25th, 2010 - 26 comments
Categories: tax - Tags: ,

Woe betide those who attribute a single opinion to The Standard, I thought I’d offer a contrasting opinion with Marty.  I had to use his image though – I think the Dr Who look is priceless.

I like Income Splitting as a principle, but, as Marty has pointed out on more than one occasion, it tends to have bad outcomes in practice.  I don’t wish to fund tax cuts for the rich any more than he does.  The thought of Bill English deciding what needs to be cut to fund it terrifies me.

But I do think that the practice can be adjusted to fit the principle.

I like the principle because, in particular, I think it is very valuable having a parent home for the early years of childhood and, in general, it is good for people to be able to afford to do volunteer and community work.  Those not in paid work are often the glue that holds society together.  I don’t like the practice as those on $200k+ can fund their partner’s volunteering on their own shilling (or more likely on their employees’ shilling).

So how can we make the two fit?  The bill is coming (even if it may well not get to law), so we might as well see how it can be best shaped.

I suggest that the income that can be transferred from one tax bill to another be capped at the average income.  Partner earns $100k, and you earn $10k from your part-time job?  You can transfer it to $35k (average income) for you and $75k for them.  That way you’re not getting a better than average deal, and the tax savings are focussed on those earning less.

My other suggestion comes from Policy Progress: tie the increased cost to a tax on incomes over $100k.  Aotearoa’s tax rates for those earning over $100k are the lowest amongst rich countries, there’s plenty of room to move.

(Hat-tip Trevor Mallard for the policy progress link; and whilst we’re there, yes, you were first to break the Heather Roy story.  Enough kudos for you?)

If one needs to reduce the cost further (and I’d suggest that’s only if it’s not funded from an increased $100k+ tax rate), then focus it where it’s really helpful: on those with school age or younger children.

Let the attacks/reasoned debate begin…

26 comments on “Income splitting – all bad? ”

  1. Bright Red 1

    I think there’s real merit in a tax/welfare system that consistantly views either everyone as an individual or says the household is the basic economic unit. If you were to rebuild the system from the bottom up and wanted to think of the household as the basic economic unit, income splitting would be part of that. But, as formulated, it’s just a hand out to the rich that will have to come from cuts to the social wage.

    I agree that if you were to fund income splitting from a higher top tax rate – looks like an extra 2 or 3 cents on income over $100K would raise the $500 mil a year needed – then that would remove much of the objection to income splitting.

    • Lanthanide 1.1

      I believe the average income is $48k, or at least that’s the figure that Key liked to tout re: the “north of $50/week tax cut for the average wage”. Median income is ~$37k.

      I like the idea of capping the transferrals up to the average wage, which would be $48k in my mind. That seems fair enough – a couple on $100k would split to 48 and 52, vs the currently proposed 50/50, and someone on 140k would split to 48 and 92, vs the currently proposed 70/70.

      Also the tax rate over $100k would be nice, but National would never take a back-step there, particularly as many of those earning over that amount tend to be older with grown children so wouldn’t be eligible for the income splitting (although most would probably be using trusts to achieve the same or better result anyway). Labour has said that when they get in they will be looking at a top tax rate to replace the one that the Nat’s just cut, and that it’d be at least 100k, so that’s probably the best we can hope for. Really Labour could do both – new tax rate and income splitting, vs National just income splitting.

      • Bunji 1.1.1

        Sorry, got my stats from the statistics.govt.nz website, not that nice man Mr Key. A little over $35K would have been median income (not wage, that’s a few grand lower, income includes investments etc) to June 2009. Mean income obviously takes into account inequality as those earning $7mill a year skew the whole statistics. But as a floated idea, somewhere around median/mean income would be good anyway.

  2. KJT 2

    I said that a while back. Income splitting would be a good idea if it was kept to a capped amount.
    45% tax on incomes over 150k is the same as OZ and would pay for it to be tax neutral.

    Though a guaranteed minimum income for each individual may be a much better idea. Cut out the plethora of different benefits and simply administer it through IRD.

    I fail to see the point of tax payers paying for child care so that a parent can work for, mostly, minimum wage. Only to be replaced by a paid childcare centre.

  3. lprent 3

    Woe betide those who attribute a single opinion to The Standard…

    Yep, I tend to land on them like a ton of refractory bricks (with a high silica content). I’ve never quite understood that particular bit of stupidity by (usually) the right-leaners. Bearing in mind the number of times that authors do disagree with each other in part or whole it seemed a bit daft. Eventually I came to the conclusion that it was a very good indicator of a troll just trying to denigrate the site, and acted accordingly….

  4. I can’t see why income splitting should be allowed. All it does is shift an extra tax burden on people with a different lifestyle choice (i.e. childless couples and singles with and without children).
    What’s more, current tax laws consider other “family” units as economic units, i.e. you can’t go on a benefit if your partner has an income. Why not tackle that instead? It would affect many more people beneficially.
    As an aside, when your child leaves home at 16 and gets an independent benefit your income split disappears and you certainly have to start paying far more tax?
    And can we make income splitting dependent on keeping your children in school, at a desirable weight, unpregnant and out of jail?

  5. until you can find a way to do income-splitting that doesn’t discriminate against sole parents, and gives equal value to parents who stay at home on the DPB, then it is bad. there is also a gendered aspect to this, in that it’s much more likely that women will be the ones under pressure to give up their careers and stay at home (given the gender pay gap and dearth of women in leadership positions, particuarly in the private sector). the partner who stays at home, if they work part-time, will be under pressure to not take a pay rise. i’m sorry, but this policy is just bad.

    • Lanthanide 5.1

      Under pressure not to take a pay rise? How do you figure that?

      With income splitting, if the person on the lower income gets a pay rise, it is effectively taxed at the marginal rate of the other party. But more money is still more money – would you rather have an additional $10,000 pa that was effectively taxed at 30% instead of 17.5%, or not? Sure, this is a ‘disincentive’ to get to work, that the right likes to go on about people not being incentivised to work because of the high tax rate, but I’m pretty sure there wouldn’t be any undue pressure from the partner in this kind of siutation.

      captcha: avoiding (what, exactly?)

  6. Ari 6

    A fixed tax credit for part-time workers with children or full time parents would make more sense than income splitting, I think. Having it scale in any way with income is just a way to turn it into class warfare, so fixed as opposed to capped should be the way to go.

    If that sounds a bit like WFF to anyone… well, what a coincidence. 😉

    • Herodotus 6.1

      That is why some like myself are supportive of income splitting because WFF does not treat welfare and income as the same
      even though there is an inherent error in the Labour welfare system that disadvantages one form of a family. $100k single income family pays $8.45k more tax than a family with 2 $50k incomes, and both can qualify for the same WFF benefit even though one family has to survive on this $8.45k less than the other. This applies to any 2 income families whereby the 2 earners are on dirrerent tax brackets or having only 1 income. WFF (Welfare) is unfair to many families as the welfare system does not look at disposable incomes until this occurs we require tax system to take this into consideration.
      UROSKIN I can’t see why income splitting should be allowed. All it does is shift an extra tax burden on people with a different lifestyle choice (i.e. childless couples and singles with and without children). Does not any support system by a goverment creat this same issue. This sounds a wee bit of the far right policy of the Libertarianz.

      • Descendant Of Smith 6.1.1

        The sole parent issue to me is simply a red herring. A sole parent doesn’t have two people to feed, house, clothe, put aside for superannuation.

        When commenting on this in an earlier post I did suggest that this should be funded by higher tax rates on higher incomes but their may also be savings as other have alluded to in child care subsidies as well as DPB where it would be more attractive to formally establish a realtionship where one party is not working.

        Those that criticise the nuclear family neglect to opine on the evidence that children need males figures in their lives. I’m the last person to come at this from a religious point of view or a white middle class male point of view and have no intention of doing so. What was quite evident to me in the late 80’s when income splitting was removed and other financial pressures went on families.g. high interest rates, that it was the financial pressure that finnaly stove in people’s relationships.

        This may not be the neatest mechanism for helping one income families but it is a positive way of helping and doesn’t require people to front up and be considered a beneficiary which quite frankly pisses a lot of people off.

        Universality (as with Family Benefit) is much less divisive and does stop people being played off against each other which is something the right love to do. Taking that destructive weapon away is not a bad thing.

        As for having children being a lifestyle choice I want to puke every-time some wanker says that. It’s not any more than not having children is a lifestyle choice.

        What you really mean is that only the rich should have children.

        • Herodotus 6.1.1.1

          Universiality (as with Family Benefit) is much less divisive and does stop people being played off against each other which is something the right love to do. Takking that destructive weapon away is not a bad thing.
          I think that this facit of politics is not limited just to the right.
          No one has commented regarding what direction do we as a society wish to support, and with that what we are willing to subsidies in economic terms with govt policy. We dont seem to want to assist the trad nuclear family of extended familt scenario, but are willing to pay for the ambulance at the bottom with broken families. Should we not have a discussion what is the optimum situation and support that, then those families that are unable to attain that for any reason to support in other means, and how is this and other govt initiatves to be funded regarding tax and what is appropiate for consumation tax, coy tax and at what level does the top PAYE tax structure take effect. Atthe moment the top tax rate still hits families at a level that many believe is stll just a livable wage, otherwise why are we supporting these same families with the likes of WFF?

        • Rosy 6.1.1.2

          Going from two incomes to one due to a chronic illness (no, not lifestyle-related) and not being eligible for invalid’s benefit or ACC to make up the difference means income-splitting would be awesome and recognise the burden on the working partner as well as the need for some sense of worth for the now-at-home partner. Oh, that’s right, no dependent kids so it’s just another thing that the partnered long-term ill/unemployed will miss out on.

          • Descendant Of Smith 6.1.1.2.1

            I’ve never argued that income splitting should only apply to those with children. I think it should apply to all and people becoming unwell and consequently reducing earning capacity is a good example of why it should apply to all couples.

    • Bunji 6.2

      Hmm, you make a good argument Ari. Maybe we should focus on a guaranteed minimum income, altered according to number of dependants. I think some left-wing thinker had some principle of “everyone contribute according to their ability, and take according to their need”?

      Even so, I would prefer it if not everything had to pass through the state. It seems more efficient to just keep the money rather than hand it over to the state to get it back again. It depends on how statist one is willing to be I suppose.

      To stargazer I’d say that the DPB is exactly there to help solo parents. Making sure that is at a good rate to give those parents choices in raising their kids is important. But there is no way the state is going to be able to give them a life-partner to make the task of raising their kids easier; that doesn’t mean we should penalise those who do have that family unit.

      • Descendant Of Smith 6.2.1

        I’ve also posted previously that Labour should hang it’s head in shame for not re-instating the $20-00 per week taken of beneficiaries – but re-instating it for NZS, particularly as NZS already had a higher rate in the first place.

        Re-instating that $20-00 and removing youth rates for benefits would be a good start to lifting those incomes.

      • stargazer 6.2.2

        how is asking them to pay their fair share of taxes “penalising” them? what you’re advocating for is a discriminatory policy that privileges a couple over single parents, and more than that, privileges couples where one partner earns a high income and the other doesn’t. if you want to support parents, have a policy that supports them irrespective of their family structure and gives more income to those who need it more eg WfF.

        • Descendant Of Smith 6.2.2.1

          privileges? all depends on perception doesn’t it.

          A couple on one income has to support more people on that one income than a sole parent on the same income. Making that a little more even is a privilege?

          Maybe for the sole parent we could save money on the dole queue by having them take in an adult and provide for them. That way the sole parent wouldn’t be privileged by not having another adult to support.

          All assistance and taxation is discriminatory in one way or another, as are wages – same job different town different pay rate.

          Obviously the solution to ensure no-one is privileged is to pay everyone the same wage and tax them all the same amount.

  7. no, the solution is not to design policy based on marital status. and i\’ve not heard anyone saying income-splitting should be restricted to families with one income.

    but let’s say we take your point, what if the sole parent has more mouths to feed than the couple, because of more children in the household? using your logic, we should then put a few people from the “dole queue” into the couple’s home, or what? it’s a stupid assumption that a couple on one income has more mouths to feed than a sole-parent on one income.

    • Descendant Of Smith 7.1

      I thought it was obvious I was referring to more adults to support as opposed to children and nor did I indicate that policy was restricted to one income only. I used that example because I have genuine concern for people who are on one income.

      Referencing my earlier posts it’s also clear that it’s not just about feeding – it’s about the long term costs of supporting a partner, who may not be able to work for a range of reasons including raising children with disabilities or through illness , including making provision for retirement for both yourselves and your partner.

      Of course another solution may be to lift the minimum wage to a level where a family can be supported on one income but I suspect that is less likely.

      Nope much better to have the couple separate due to financial pressure, have one work and pay child support and the other on DPB. Much more cost effective.

      Do you not notice that the big increase in DPB occurred through the 80’s when wages reduced, interest rates went up, overtime and penal rates disappeared, income splitting and universal family benefit disappeared, individual contracts came in, clauses in pay conditions such as additional allowances for supporting a family if your wife didn’t work vanished – you know things got so individualistic and un-family friendly that we somehow seem surprised that we reaped what we sowed.

      Make it easier for all families but don’t make them have to apply for a benefit like WFF – leave the benefits for the most needy – people hate applying for stuff in that way.

      • stargazer 7.1.1

        sorry, but i didn’t say that i’d prefer a couple to separate due to financial pressure. i said that people should be getting support for parenting regardless of marital status or personal family situation. people don’t just split because of financial pressure, and there are plenty of single parents who aren’t on the the DPB – 2 in my place of work that has 10 people. what about the sole parents who are under financial pressure? because they aren’t in danger of “splitting”, they don’t deserve an equal tax-break?

        as for more adults to support, i don’t see how a sole-parent with two teenage kids (or say an 8 & 11 year old) should deserve less of a tax break than a couple with a toddler. as for your “long-term costs of supporting a partner” – once the kids have left home the other partner can get a fulltime job right? so what’s life-long about it. and as i understand the policy, the income-splitting stops when the kids reach a certain age.

        make it easier for ALL families who struggle, not just the select few where one earns a high income and the other doesn’t. every family deserves financial stability.

  8. Descendant Of Smith 8

    Fine to have a different point of view I’m not going to labour the point..

    “people don’t just split because of financial pressure”.

    I don’t know if you were around in the 80’s paying 22.5% on your mortgage having originally borrowed at 6% – to 9%, having lost all penal rates and been moved to a lower wage when you had to apply for your job back but I can find you lots of people that separated due to financial pressure.

    I don’t know how we held it all together (probably cause I’m so nice) but there are plenty of people who didn’t.

    Any casual searching of any counseling / marriage guidance / divorce websites will tell you that financial pressure is one of the leading causes of separation.

    • Blondie 8.1

      As a single working parent, I find it offensive that I would be paying higher tax than another wage-earner on exactly the same income if this income-splitting bill goes through.

      I believe firmly that people should be entitled to the rewards of their labour, regardless of marital or relationship status. To be honest I also have concerns with the equity of WFF – but I feel much less resentful that my taxes might go to help poorer families through WFF, than if they subsidise wealthier families through income-splitting. If I’m going to be forced to donate to other families (through taxes), I’d much prefer my taxes go somewhere that there is a genuine need.

      The nonsense that some people spout about single-parent families arising due to financial pressures – are they really so silly as to think that rewarding two-parent families by way of tax cuts, will eliminate marriage break-ups?

      Newsflash: many relationship break ups are due to non-financial matters, such as infidelity, arguments, boredom, sexual dysfunction, violence and abuse, interfering in-laws, mistrust, poor communication, etc, etc. If social engineering is the true objective of this bill (which it appears it is), bribing couples to stay together by way of an income-splitting tax cuts won’t help to address the real issues.

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    Given the crackdown on wasteful government spending, it behooves me to point to a high profile example of spending by the Luxon government that looks like a big, fat waste of time and money. I’m talking about the deployment of NZDF personnel to support the US-led coalition in the Red ...
    WerewolfBy lyndon
    3 days ago
  • The Kākā’s Pick 'n' Mix for Wednesday, July 24

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 7:40 am on Wednesday, July 24 are:Deep Dive: Chipping away at the housing crisis, including my comments RNZ/Newsroom’s The DetailNews: Government softens on asset sales, ...
    The KakaBy Bernard Hickey
    3 days ago
  • LXR Takaanini

    As I reported about the city centre, Auckland’s rail network is also going through a difficult and disruptive period which is rapidly approaching a culmination, this will result in a significant upgrade to the whole network. Hallelujah. Also like the city centre this is an upgrade predicated on the City ...
    Greater AucklandBy Patrick Reynolds
    3 days ago
  • Four kilograms of pain

    Today, a 4 kilogram report will be delivered to Parliament. We know this is what the report of the Royal Commission of Inquiry into Abuse in State and Faith-based Care weighs, because our Prime Minister told us so.Some reporter had blindsided him by asking a question about something done by ...
    More Than A FeildingBy David Slack
    3 days ago
  • The Kākā’s Journal of Record for Wednesday, July 24

    TL;DR: As of 7:00 am on Wednesday, July 24, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:Beehive: Transport Minister Simeon Brown announced plans to use PPPs to fund, build and run a four-lane expressway between Auckland ...
    The KakaBy Bernard Hickey
    3 days ago
  • Luxon gets caught out

    NewstalkZB host Mike Hosking, who can usually be relied on to give Prime Minister Christopher Luxon an easy run, did not do so yesterday when he interviewed him about the HealthNZ deficit. Luxon is trying to use a deficit reported last year by HealthNZ as yet another example of the ...
    PolitikBy Richard Harman
    3 days ago
  • A worrying sign

    Back in January a StatsNZ employee gave a speech at Rātana on behalf of tangata whenua in which he insulted and criticised the government. The speech clearly violated the principle of a neutral public service, and StatsNZ started an investigation. Part of that was getting an external consultant to examine ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Are we fine with 47.9% home-ownership by 2048?

    Renting for life: Shared ownership initiatives are unlikely to slow the slide in home ownership by much. Photo: Lynn Grieveson / The KākāTL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy today are:A Deloitte report for Westpac has projected Aotearoa’s home-ownership rate will ...
    The KakaBy Bernard Hickey
    4 days ago
  • Let's Win This

    You're broken down and tiredOf living life on a merry go roundAnd you can't find the fighterBut I see it in you so we gonna walk it outAnd move mountainsWe gonna walk it outAnd move mountainsAnd I'll rise upI'll rise like the dayI'll rise upI'll rise unafraidI'll rise upAnd I'll ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Waimahara: The Singing Spirit of Water

    There’s been a change in Myers Park. Down the steps from St. Kevin’s Arcade, past the grassy slopes, the children’s playground, the benches and that goat statue, there has been a transformation. The underpass for Mayoral Drive has gone from a barren, grey, concrete tunnel, to a place that thrums ...
    Greater AucklandBy Connor Sharp
    4 days ago
  • A major milestone: Global climate pollution may have just peaked

    This is a re-post from Yale Climate Connections Global society may have finally slammed on the brakes for climate-warming pollution released by human fossil fuel combustion. According to the Carbon Monitor Project, the total global climate pollution released between February and May 2024 declined slightly from the amount released during the same ...
    4 days ago
  • The Kākā’s Pick 'n' Mix for Tuesday, July 23

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 7:00 am on Tuesday, July 23 are:Deep Dive: Penlink: where tolling rhetoric meets reality BusinessDesk-$$$’s Oliver LewisScoop: Te Pūkenga plans for regional polytechs leak out ...
    The KakaBy Bernard Hickey
    4 days ago
  • The Kākā’s Journal of Record for Tuesday, July 23

    TL;DR: As of 6:00 am on Tuesday, July 23, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:Health: Shane Reti announced the Board of Te Whatu Ora- Health New Zealand was being replaced with Commissioner Lester Levy ...
    The KakaBy Bernard Hickey
    4 days ago
  • HealthNZ and Luxon at cross purposes over budget blowout

    Health NZ warned the Government at the end of March that it was running over Budget. But the reasons it gave were very different to those offered by the Prime Minister yesterday. Prime Minister Christopher Luxon blamed the “botched merger” of the 20 District Health Boards (DHBs) to create Health ...
    PolitikBy Richard Harman
    4 days ago
  • 2500-3000 more healthcare staff expected to be fired, as Shane Reti blames Labour for a budget defic...

    Long ReadKey Summary: Although National increased the health budget by $1.4 billion in May, they used an old funding model to project health system costs, and never bothered to update their pre-election numbers. They were told during the Health Select Committees earlier in the year their budget amount was deficient, ...
    Mountain TuiBy Mountain Tui
    4 days ago
  • Might Kamala Harris be about to get a 'stardust' moment like Jacinda Ardern?

    As a momentous, historic weekend in US politics unfolded, analysts and commentators grasped for precedents and comparisons to help explain the significance and power of the choice Joe Biden had made. The 46th president had swept the Democratic party’s primaries but just over 100 days from the election had chosen ...
    PunditBy Tim Watkin
    5 days ago
  • Solutions Interview: Steven Hail on MMT & ecological economics

    TL;DR: I’m casting around for new ideas and ways of thinking about Aotearoa’s political economy to find a few solutions to our cascading and self-reinforcing housing, poverty and climate crises.Associate Professor runs an online masters degree in the economics of sustainability at Torrens University in Australia and is organising ...
    The KakaBy Steven Hail
    5 days ago
  • Reported back

    The Finance and Expenditure Committee has reported back on National's Local Government (Water Services Preliminary Arrangements) Bill. The bill sets up water for privatisation, and was introduced under urgency, then rammed through select committee with no time even for local councils to make a proper submission. Naturally, national's select committee ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Vandrad the Viking, Christopher Coombes, and Literary Archaeology

    Some years ago, I bought a book at Dunedin’s Regent Booksale for $1.50. As one does. Vandrad the Viking (1898), by J. Storer Clouston, is an obscure book these days – I cannot find a proper online review – but soon it was sitting on my shelf, gathering dust alongside ...
    5 days ago
  • Gordon Campbell On The Biden Withdrawal

    History is not on the side of the centre-left, when Democratic presidents fall behind in the polls and choose not to run for re-election. On both previous occasions in the past 75 years (Harry Truman in 1952, Lyndon Johnson in 1968) the Democrats proceeded to then lose the White House ...
    WerewolfBy lyndon
    5 days ago
  • Joe Biden's withdrawal puts the spotlight back on Kamala and the USA's complicated relatio...

    This is a free articleCoverageThis morning, US President Joe Biden announced his withdrawal from the Presidential race. And that is genuinely newsworthy. Thanks for your service, President Biden, and all the best to you and yours.However, the media in New Zealand, particularly the 1News nightly bulletin, has been breathlessly covering ...
    Mountain TuiBy Mountain Tui
    5 days ago
  • Why we have to challenge our national fiscal assumptions

    A homeless person’s camp beside a blocked-off slipped damage walkway in Freeman’s Bay: we are chasing our tail on our worsening and inter-related housing, poverty and climate crises. Photo: Photo: Lynn Grieveson / The KākāTL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy ...
    The KakaBy Bernard Hickey
    5 days ago
  • Existential Crisis and Damaged Brains

    What has happened to it all?Crazy, some'd sayWhere is the life that I recognise?(Gone away)But I won't cry for yesterdayThere's an ordinary worldSomehow I have to findAnd as I try to make my wayTo the ordinary worldYesterday morning began as many others - what to write about today? I began ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • A speed limit is not a target, and yet…

    This is a guest post from longtime supporter Mr Plod, whose previous contributions include a proposal that Hamilton become New Zealand’s capital city, and that we should switch which side of the road we drive on. A recent Newsroom article, “Back to school for the Govt’s new speed limit policy“, ...
    Greater AucklandBy Guest Post
    5 days ago
  • The Kākā’s Pick 'n' Mix for Monday, July 22

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 7:00 am on Monday, July 22 are:Today’s Must Read: Father and son live in a tent, and have done for four years, in a million ...
    The KakaBy Bernard Hickey
    5 days ago
  • The Kākā’s Journal of Record for Monday, July 22

    TL;DR: As of 7:00 am on Monday, July 22, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:US President Joe Biden announced via X this morning he would not stand for a second term.Multinational professional services firm ...
    The KakaBy Bernard Hickey
    5 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #29

    A listing of 32 news and opinion articles we found interesting and shared on social media during the past week: Sun, July 14, 2024 thru Sat, July 20, 2024. Story of the week As reflected by preponderance of coverage, our Story of the Week is Project 2025. Until now traveling ...
    6 days ago
  • I'd like to share what I did this weekend

    This weekend, a friend pointed out someone who said they’d like to read my posts, but didn’t want to pay. And my first reaction was sympathy.I’ve already told folks that if they can’t comfortably subscribe, and would like to read, I’d be happy to offer free subscriptions. I don’t want ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • For the children – Why mere sentiment can be a misleading force in our lives, and lead to unex...

    National: The Party of ‘Law and Order’ IntroductionThis weekend, the Government formally kicked off one of their flagship policy programs: a military style boot camp that New Zealand has experimented with over the past 50 years. Cartoon credit: Guy BodyIt’s very popular with the National Party’s Law and Order image, ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • A friend in uncertain times

    Day one of the solo leg of my long journey home begins with my favourite sound: footfalls in an empty street. 5.00 am and it’s already light and already too warm, almost.If I can make the train that leaves Budapest later this hour I could be in Belgrade by nightfall; ...
    More Than A FeildingBy David Slack
    6 days ago
  • The Chaotic World of Male Diet Influencers

    Hi,We’ll get to the horrific world of male diet influencers (AKA Beefy Boys) shortly, but first you will be glad to know that since I sent out the Webworm explaining why the assassination attempt on Donald Trump was not a false flag operation, I’ve heard from a load of people ...
    David FarrierBy David Farrier
    6 days ago
  • It's Starting To Look A Lot Like… Y2K

    Do you remember Y2K, the threat that hung over humanity in the closing days of the twentieth century? Horror scenarios of planes falling from the sky, electronic payments failing and ATMs refusing to dispense cash. As for your VCR following instructions and recording your favourite show - forget about it.All ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Bernard’s Saturday Soliloquy for the week to July 20

    Climate Change Minister Simon Watts being questioned by The Kākā’s Bernard Hickey.TL;DR: My top six things to note around housing, climate and poverty in Aotearoa’s political economy in the week to July 20 were:1. A strategy that fails Zero Carbon Act & Paris targetsThe National-ACT-NZ First Coalition Government finally unveiled ...
    The KakaBy Bernard Hickey
    1 week ago
  • Pharmac Director, Climate Change Commissioner, Health NZ Directors – The latest to quit this m...

    Summary:As New Zealand loses at least 12 leaders in the public service space of health, climate, and pharmaceuticals, this month alone, directly in response to the Government’s policies and budget choices, what lies ahead may be darker than it appears. Tui examines some of those departures and draws a long ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Flooding Housing Policy

    The Minister of Housing’s ambition is to reduce markedly the ratio of house prices to household incomes. If his strategy works it would transform the housing market, dramatically changing the prospects of housing as an investment.Leaving aside the Minister’s metaphor of ‘flooding the market’ I do not see how the ...
    PunditBy Brian Easton
    1 week ago
  • A Voyage Among the Vandals: Accepted (Again!)

    As previously noted, my historical fantasy piece, set in the fifth-century Mediterranean, was accepted for a Pirate Horror anthology, only for the anthology to later fall through. But in a good bit of news, it turned out that the story could indeed be re-marketed as sword and sorcery. As of ...
    1 week ago
  • The Kākā's Chorus for Friday, July 19

    An employee of tobacco company Philip Morris International demonstrates a heated tobacco device. Photo: Getty ImagesTL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy on Friday, July 19 are:At a time when the Coalition Government is cutting spending on health, infrastructure, education, housing ...
    The KakaBy Bernard Hickey
    1 week ago
  • The Kākā’s Pick 'n' Mix for Friday, July 19

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 8:30 am on Friday, July 19 are:Scoop: NZ First Minister Casey Costello orders 50% cut to excise tax on heated tobacco products. The minister has ...
    The KakaBy Bernard Hickey
    1 week ago
  • Weekly Roundup 19-July-2024

    Kia ora, it’s time for another Friday roundup, in which we pull together some of the links and stories that caught our eye this week. Feel free to add more in the comments! Our header image this week shows a foggy day in Auckland town, captured by Patrick Reynolds. ...
    Greater AucklandBy Greater Auckland
    1 week ago
  • Weekly Climate Wrap: A market-led plan for failure

    TL;DR : Here’s the top six items climate news for Aotearoa this week, as selected by Bernard Hickey and The Kākā’s climate correspondent Cathrine Dyer. A discussion recorded yesterday is in the video above and the audio of that sent onto the podcast feed.The Government released its draft Emissions Reduction ...
    The KakaBy Bernard Hickey
    1 week ago
  • Tobacco First

    Save some money, get rich and old, bring it back to Tobacco Road.Bring that dynamite and a crane, blow it up, start all over again.Roll up. Roll up. Or tailor made, if you prefer...Whether you’re selling ciggies, digging for gold, catching dolphins in your nets, or encouraging folks to flutter ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Trump’s Adopted Son.

    Waiting In The Wings: For truly, if Trump is America’s un-assassinated Caesar, then J.D. Vance is America’s Octavian, the Republic’s youthful undertaker – and its first Emperor.DONALD TRUMP’S SELECTION of James D. Vance as his running-mate bodes ill for the American republic. A fervent supporter of Viktor Orban, the “illiberal” prime ...
    1 week ago
  • The Kākā’s Journal of Record for Friday, July 19

    TL;DR: As of 6:00 am on Friday, July 19, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:The PSA announced the Employment Relations Authority (ERA) had ruled in the PSA’s favour in its case against the Ministry ...
    The KakaBy Bernard Hickey
    1 week ago

  • Joint statement from the Prime Ministers of Canada, Australia and New Zealand

    Australia, Canada and New Zealand today issued the following statement on the need for an urgent ceasefire in Gaza and the risk of expanded conflict between Hizballah and Israel. The situation in Gaza is catastrophic. The human suffering is unacceptable. It cannot continue.  We remain unequivocal in our condemnation of ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • AG reminds institutions of legal obligations

    Attorney-General Judith Collins today reminded all State and faith-based institutions of their legal obligation to preserve records relevant to the safety and wellbeing of those in its care. “The Abuse in Care Inquiry’s report has found cases where records of the most vulnerable people in State and faith‑based institutions were ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • More young people learning about digital safety

    Minister of Internal Affairs Brooke van Velden says the Government’s online safety website for children and young people has reached one million page views.  “It is great to see so many young people and their families accessing the site Keep It Real Online to learn how to stay safe online, and manage ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Speech to the Conference for General Practice 2024

    Tēnā tātou katoa,  Ngā mihi te rangi, ngā mihi te whenua, ngā mihi ki a koutou, kia ora mai koutou. Thank you for the opportunity to be here and the invitation to speak at this 50th anniversary conference. I acknowledge all those who have gone before us and paved the ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Employers and payroll providers ready for tax changes

    New Zealand’s payroll providers have successfully prepared to ensure 3.5 million individuals will, from Wednesday next week, be able to keep more of what they earn each pay, says Finance Minister Nicola Willis and Revenue Minister Simon Watts.  “The Government's tax policy changes are legally effective from Wednesday. Delivering this tax ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Experimental vineyard futureproofs wine industry

    An experimental vineyard which will help futureproof the wine sector has been opened in Blenheim by Associate Regional Development Minister Mark Patterson. The covered vineyard, based at the New Zealand Wine Centre – Te Pokapū Wāina o Aotearoa, enables controlled environmental conditions. “The research that will be produced at the Experimental ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Funding confirmed for regions affected by North Island Weather Events

    The Coalition Government has confirmed the indicative regional breakdown of North Island Weather Event (NIWE) funding for state highway recovery projects funded through Budget 2024, Transport Minister Simeon Brown says. “Regions in the North Island suffered extensive and devastating damage from Cyclone Gabrielle and the 2023 Auckland Anniversary Floods, and ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Indonesian Foreign Minister to visit

    Indonesia’s Foreign Minister, Retno Marsudi, will visit New Zealand next week, Foreign Minister Winston Peters has announced.   “Indonesia is important to New Zealand’s security and economic interests and is our closest South East Asian neighbour,” says Mr Peters, who is currently in Laos to engage with South East Asian partners. ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Strengthening partnership with Ngāti Maniapoto

    He aha te kai a te rangatira? He kōrero, he kōrero, he kōrero. The government has reaffirmed its commitment to supporting the aspirations of Ngāti Maniapoto, Minister for Māori Development Tama Potaka says. “My thanks to Te Nehenehenui Trust – Ngāti Maniapoto for bringing their important kōrero to a ministerial ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Transport Minister thanks outgoing CAA Chair

    Transport Minister Simeon Brown has thanked outgoing Chair of the Civil Aviation Authority, Janice Fredric, for her service to the board.“I have received Ms Fredric’s resignation from the role of Chair of the Civil Aviation Authority,” Mr Brown says.“On behalf of the Government, I want to thank Ms Fredric for ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Test for Customary Marine Title being restored

    The Government is proposing legislation to overturn a Court of Appeal decision and amend the Marine and Coastal Area Act in order to restore Parliament’s test for Customary Marine Title, Treaty Negotiations Minister Paul Goldsmith says.  “Section 58 required an applicant group to prove they have exclusively used and occupied ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Opposition united in bad faith over ECE sector review

    Regulation Minister David Seymour says that opposition parties have united in bad faith, opposing what they claim are ‘dangerous changes’ to the Early Childhood Education sector, despite no changes even being proposed yet.  “Issues with affordability and availability of early childhood education, and the complexity of its regulation, has led ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Kiwis having their say on first regulatory review

    After receiving more than 740 submissions in the first 20 days, Regulation Minister David Seymour is asking the Ministry for Regulation to extend engagement on the early childhood education regulation review by an extra two weeks.  “The level of interest has been very high, and from the conversations I’ve been ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government upgrading Lower North Island commuter rail

    The Coalition Government is investing $802.9 million into the Wairarapa and Manawatū rail lines as part of a funding agreement with the NZ Transport Agency (NZTA), KiwiRail, and the Greater Wellington and Horizons Regional Councils to deliver more reliable services for commuters in the lower North Island, Transport Minister Simeon ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government moves to ensure flood protection for Wairoa

    Local Government Minister Simeon Brown has announced his intention to appoint a Crown Manager to both Hawke’s Bay Regional and Wairoa District Councils to speed up the delivery of flood protection work in Wairoa."Recent severe weather events in Wairoa this year, combined with damage from Cyclone Gabrielle in 2023 have ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM speech to Parliament – Royal Commission of Inquiry’s Report into Abuse in Care

    Mr Speaker, this is a day that many New Zealanders who were abused in State care never thought would come. It’s the day that this Parliament accepts, with deep sorrow and regret, the Report of the Royal Commission of Inquiry into Abuse in Care.  At the heart of this report are the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government acknowledges torture at Lake Alice

    For the first time, the Government is formally acknowledging some children and young people at Lake Alice Psychiatric Hospital experienced torture. The final report of the Royal Commission of Inquiry into Abuse in State and Faith-based Care “Whanaketia – through pain and trauma, from darkness to light,” was tabled in Parliament ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government acknowledges courageous abuse survivors

    The Government has acknowledged the nearly 2,400 courageous survivors who shared their experiences during the Royal Commission of Inquiry into Historical Abuse in State and Faith-Based Care. The final report from the largest and most complex public inquiry ever held in New Zealand, the Royal Commission Inquiry “Whanaketia – through ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Half a million people use tax calculator

    With a week to go before hard-working New Zealanders see personal income tax relief for the first time in fourteen years, 513,000 people have used the Budget tax calculator to see how much they will benefit, says Finance Minister Nicola Willis.  “Tax relief is long overdue. From next Wednesday, personal income ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Paid Parental Leave improvements pass first reading

    Workplace Relations and Safety Minister Brooke van Velden says a bill that has passed its first reading will improve parental leave settings and give non-biological parents more flexibility as primary carer for their child. The Regulatory Systems Amendment Bill (No3), passed its first reading this morning. “It includes a change ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Rebuilding the economy through better regulation

    Two Bills designed to improve regulation and make it easier to do business have passed their first reading in Parliament, says Economic Development Minister Melissa Lee. The Regulatory Systems (Economic Development) Amendment Bill and Regulatory Systems (Immigration and Workforce) Amendment Bill make key changes to legislation administered by the Ministry ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • ‘Open banking’ and ‘open electricity’ on the way

    New legislation paves the way for greater competition in sectors such as banking and electricity, Commerce and Consumer Affairs Minister Andrew Bayly says. “Competitive markets boost productivity, create employment opportunities and lift living standards. To support competition, we need good quality regulation but, unfortunately, a recent OECD report ranked New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Charity lotteries to be permitted to operate online

    Minister of Internal Affairs Brooke van Velden says lotteries for charitable purposes, such as those run by the Heart Foundation, Coastguard NZ, and local hospices, will soon be allowed to operate online permanently. “Under current laws, these fundraising lotteries are only allowed to operate online until October 2024, after which ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Accelerating Northland Expressway

    The Coalition Government is accelerating work on the new four-lane expressway between Auckland and Whangārei as part of its Roads of National Significance programme, with an accelerated delivery model to deliver this project faster and more efficiently, Transport Minister Simeon Brown says. “For too long, the lack of resilient transport connections ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Sir Don to travel to Viet Nam as special envoy

    Sir Don McKinnon will travel to Viet Nam this week as a Special Envoy of the Government, Foreign Minister Winston Peters has announced.    “It is important that the Government give due recognition to the significant contributions that General Secretary Nguyen Phu Trong made to New Zealand-Viet Nam relations,” Mr ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Grant Illingworth KC appointed as transitional Commissioner to Royal Commission

    Minister of Internal Affairs Brooke van Velden says newly appointed Commissioner, Grant Illingworth KC, will help deliver the report for the first phase of the Royal Commission of Inquiry into COVID-19 Lessons, due on 28 November 2024.  “I am pleased to announce that Mr Illingworth will commence his appointment as ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ to advance relationships with ASEAN partners

    Foreign Minister Winston Peters travels to Laos this week to participate in a series of Association of Southeast Asian Nations (ASEAN)-led Ministerial meetings in Vientiane.    “ASEAN plays an important role in supporting a peaceful, stable and prosperous Indo-Pacific,” Mr Peters says.   “This will be our third visit to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Backing mental health services on the West Coast

    Construction of a new mental health facility at Te Nikau Grey Hospital in Greymouth is today one step closer, Mental Health Minister Matt Doocey says. “This $27 million facility shows this Government is delivering on its promise to boost mental health care and improve front line services,” Mr Doocey says. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ support for sustainable Pacific fisheries

    New Zealand is committing nearly $50 million to a package supporting sustainable Pacific fisheries development over the next four years, Foreign Minister Winston Peters and Oceans and Fisheries Minister Shane Jones announced today. “This support consisting of a range of initiatives demonstrates New Zealand’s commitment to assisting our Pacific partners ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Students’ needs at centre of new charter school adjustments

    Associate Education Minister David Seymour says proposed changes to the Education and Training Amendment Bill will ensure charter schools have more flexibility to negotiate employment agreements and are equipped with the right teaching resources. “Cabinet has agreed to progress an amendment which means unions will not be able to initiate ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Commissioner replaces Health NZ Board

    In response to serious concerns around oversight, overspend and a significant deterioration in financial outlook, the Board of Health New Zealand will be replaced with a Commissioner, Health Minister Dr Shane Reti announced today.  “The previous government’s botched health reforms have created significant financial challenges at Health NZ that, without ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister to speak at Australian Space Forum

    Minister for Space and Science, Innovation and Technology Judith Collins will travel to Adelaide tomorrow for space and science engagements, including speaking at the Australian Space Forum.  While there she will also have meetings and visits with a focus on space, biotechnology and innovation.  “New Zealand has a thriving space ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Climate Change Minister to attend climate action meeting in China

    Climate Change Minister Simon Watts will travel to China on Saturday to attend the Ministerial on Climate Action meeting held in Wuhan.  “Attending the Ministerial on Climate Action is an opportunity to advocate for New Zealand climate priorities and engage with our key partners on climate action,” Mr Watts says. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Oceans and Fisheries Minister to Solomons

    Oceans and Fisheries Minister Shane Jones is travelling to the Solomon Islands tomorrow for meetings with his counterparts from around the Pacific supporting collective management of the region’s fisheries. The 23rd Pacific Islands Forum Fisheries Committee and the 5th Regional Fisheries Ministers’ Meeting in Honiara from 23 to 26 July ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government launches Military Style Academy Pilot

    The Government today launched the Military Style Academy Pilot at Te Au rere a te Tonga Youth Justice residence in Palmerston North, an important part of the Government’s plan to crackdown on youth crime and getting youth offenders back on track, Minister for Children, Karen Chhour said today. “On the ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Nine priority bridge replacements to get underway

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