Let’s Talk About Tax
Written By:
- Date published:
4:08 pm, September 2nd, 2024 - 44 comments
Categories: uncategorized -
Tags:
Yes, Labour can restore its woeful tax position.
In 2019, at the height of her popularity and despite her campaigning on it for over three years, Labour’s Jacinda Ardern ruled out the capital gains tax that her own tax advisory group had just recommended.
This 2018 tax advisory group report still has the most coherent set of principles for leading towards reform and fully worth the read again (Michael Cullen Rest In Peace). The core term of reference for that group’s work was whether the tax system operates fairly – in relation to taxpayers, income, assets and wealth. Further well-agreed principles of taxation it applied were revenue integrity, fiscal adequacy, compliance and administration costs, coherence and predictability and certainty.
We need to add three more values beside fairness.
Second value: trust. This means that the money the state takes from me will be spent well. Our public services didn’t get this way in a year. They got this way despite the Labour-Greens government generating greater public spending and greater public debt than we’ve seen in our lifetimes, yet mostly our public services went backwards, and National making them even worse. We should not be expected to give more of our money up until government proves it will improve public services. Otherwise, stop taking my money.
Labour in March also voted against taking GST off food in March 2024, despite it being their policy, and rolled over the Maori Party legislative proposal. Public trust in Labour about tax is not possible with Hipkins leading Labour.
Third value: reliability that builds confidence. When Luxon promised tax cuts and cuts to public services in the 2023 election, that’s what he has delivered. That builds reliability and credibility in the citizen you are taking the income from. Chris Hipkins, on the other hand, in July 2023 completely ruled out a wealth tax or a capital gains tax. “I’m confirming today that under a government I lead there will be no wealth or capital gains tax after the election. End of story,” but by March 2024 was completely re-thinking tax, maybe.
Chris Hipkins is the same leader who in the last month before the October 2023 election jettisoned multiple policies that the Labour-led government had spent 6 full years working to make happen.
Trust is the basic social contract for taxing New Zealanders
Public service charges as a substitute for direct incomes taxes are still reliable. Notably the fully hypothecated (ie purpose-dedicated taxes) aren’t touched much. ACC is now a bedrock institution for both National and Labour, because it delivers a clear relationship between taxes upon income earners, and the funds to bring people from injury to work again. Petrol and diesel taxes and road tolls are similarly easy to comprehend because they are spent on transport stuff. Same for Police income from the Proceeds of Crime Act, because Police get extra income on policing with income from confiscating assets that are criminally acquired or can’t be proven to be legitimately bought. People trust in the social contract of tax when they see its income doing what it should.
Fourth value: Reliability
People and families and companies and charities all need certainty so that they can plan their futures, and the levels and kinds of taxes are an important part of life planning. Where possible, Labour and National should agree on enduring tax policy positions and tax-substitute institutions like ACC and NZSuper. If you want the good people to stay not leave, take more of tax policy off the political table so that we are a reliable country to invest our lives and businesses in.
My Suggestions
1. Expand Hypothecation
To regain public trust in tax my small suggestion for funding health is: increase ACC levies by 20% so that ACC actively pays for larger specific parts of the health system. Government spends about $5.56 billion on hospitals, specialist services and public health per year. ACC already makes a surplus of about $900 million a year. ACC should grow to be the health version of NZSuperfund: a dedicated massive fund from both charges and investments that takes a proportional load off the taxpayer, and provides a solid income stream aiming for 25% of the total cost of health services. By the end of this century NZSuperfund will be so large it will be worth 30% of our GDP compared to about 14% now, supplying about 11% of state liability for superannuation. ACC could be built to do the same.
2. Reduce Reliance on Unemployment Benefit, through Employment Insurance
Our consistently punitive public view of social welfare outside of over-65 welfare isn’t giong away as a political reality, and this can be addressed with a dedicated fund that decreases the proportion of tax we pay for unemployment and sickness benefits. The previous Labour government put a lot of work into developing legislation for ACC to be given the power to implement worker employment insurance. It would have paid those who lose their jobs – both for health and disability issues and also for redundancies and layoff – giving up to 80% of their wages/salary for up to six months. It was supported across the Ministers for Finance, MBIE, MSD, IRD, and ACC, and also by all the unions and by Business NZ. It was to be run by ACC and funded by compulsory levies. The scheme was prepared to go live in December 2023, until Hipkins killed it off in his pre-election policy bonfire.
3. The First $10,000 of Income Tax Free
A suggestion that both Greens and the Maori Party support is to make the first $10,000 of income tax-free. This would generate a $1050 per year benefit to taxpayers. Because this tax relief goes to everyone earning income, the indicative fiscal cost of $3,787 billion is very high. I want to see a common Labour-Greens-Maori party policy platform on this for the 2026 election.
4. 45% Tax on Incomes $190,001 and over
Very simple reason: it’s the same top tax level as our core skills competitor Australia.
It would also help offset the $3.7 billion the state would lose making the first $10,000 tax free.
It would need a further proviso that no income splitting is allowed: a couple jointly earning 2 x $190,000 or $380,000 should pay the full whack. What Labour’s Robertson did do was implement a new top personal income tax rate of 39% for income earned over $180,000. Tax rates on other types of taxpayers, including companies and trusts, remain unchanged at 28% and 33% respectively. While Robertson’s motivation for this reform was to raise extra revenue in a way that is progressive and does as little as possible to increase taxes on low to middle income earners, by not raising tax rates on trusts to the same level it provided an incentive for higher income earners to structure their wealth towards trusts. Tasman tax equality removes a reason for skilled people to jump.
5. Charity and R&D to 0%, not Wealth Tax
A Labour-National agreement to not implement a wealth tax would make it much easier to change the government. It takes most of tax policy away from National as its perennial effective political weapon. We’re a young country with low natural resources and low innovation, which has generated very few multimillionaires. We need them to stay here and keep growing. Also, a wealth tax doesn’t generate much income for the state. It’s a political grudge that achieves nothing except making some feel good. In our history what we’ve seen is capital flight to havens outside of our jurisdictional reach, and just endless litigation substituting for shaming. In 1990 there were 12 OECD countries which had a wealth tax, but only Norway, Spain, and Switzerland now still have them.
I would substitute with a 0% tax on charitable giving in NZ, and 0% tax on specific forms of Research and Development costs for NZ domiciled companies. This would strongly encourage the wealthy to offload their stuff into productive areas without forcing them to, and also strongly discourage simple inheritance transfers, and also promote innovation and diffusion in our medium and large companies.
I sure hope anything on tax coming out of Labour is simple to explain, good for us as a country and our politics, as well as fair, trustworthy, and reliable. And to be credible: not fronted by Chris Hipkins.
CommentsOpinions
Recent Comments
FeedsPartyGovtMedia
- De moralibus orcorum: Sargon of Akkad, Rings of Power, Evil, and George R.R. Martin
I have noted before that The Rings of Power has attracted its unfortunate share of culture war obsessives. Essentially, for a certain type of individual, railing on about the Wokery of Modern Media is a means of making themselves a online livelihood. Clicks and views and advertising revenue, and all ...5 hours ago - 2024 SkS Weekly Climate Change & Global Warming News Roundup #37
A listing of 31 news and opinion articles we found interesting and shared on social media during the past week: Sun, September 8, 2024 thru Sat, September 14, 2024. Story of the week From time to time we like to make our Story of the Week all about us— and ...6 hours ago - Salvation For Us All
Yesterday, I ruminated about the effects of being a political follower.And, within politics, David Seymour was smart enough on Friday to divert attention from “race blind” policies [what about gender blind I thought - thinking of maternity wards] and cutting school lunches by throwing meat to the media. Teachers were ...20 hours ago - A warm embrace
Far, far away from here lives our King. Some of his subjects can be quite the forelock tuggers, but plenty of us are not like that, and why don't I wheel out my favourite old story once more about Kiwi soldiers in the North African desert?Field Marshal Montgomery takes offence ...21 hours ago - Literal clowns are running the place, we must put a timeout on this stupidity… right Aotearoa?
These people are inept on every level. They’re inept to the detriment of our internal politics, cohesion and increasingly our international reputation. And they are reveling in the fact they are getting away with it. We cannot even have “respectful debate” with a government that clearly rejects the very ...1 day ago - Fact brief – Does manmade CO2 have any detectable fingerprint?
Skeptical Science is partnering with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. This fact brief was written by Sue Bin Park from the Gigafact team in collaboration with John Mason. You can submit claims you think need checking via the tipline. Does manmade CO2 have any ...1 day ago
- Judge Not.
1 day ago - Managed Democracy: Letting The People Decide, But Only When They Can Be Relied Upon To Give the Righ...
Uh-uh! Not So Fast, Citizens! The power to initiate systemic change remains where it has always been in New Zealand’s representative democracy – in Parliament. To order a binding referendum, the House of Representatives must first to be persuaded that, on the question proposed, sharing its decision-making power with the people ...1 day ago
- Looking For Labour’s Vital Signs.
Flatlining: With no evidence of a genuine policy disruptor at work in Labour’s ranks, New Zealand’s wealthiest citizens can sleep easy.PRESIDENT JOE BIDEN has walked a picket-line. Presidential candidate Kamala Harris has threatened “price-gauging” grocery retailers with price control. The Democratic Party’s 2024 platform situates it well to the left of Sir ...2 days ago
- Forty Years Of Remembering To Forget.
The Beginning of the End: Rogernomics became the short-hand descriptor for all the radical changes that swept away New Zealand’s social-democratic economy and society between 1984 and 1990. In the bitterest of ironies, those changes were introduced by the very same party which had entrenched New Zealand social-democracy 50 years earlier. ...2 days ago
- Kōrero Mai – Speak to Me.
Good morning all you lovely people. 🙂I woke up this morning, and it felt a bit like the last day of school. You might recall from earlier in the week that I’m heading home to Rotorua to see an old friend who doesn’t have much time. A sad journey, but ...2 days ago - Winning ways
2 days ago - 48 seconds on a plan that would reverberate for a million years
Despite fears that Trump presidency would be disastrous for progress on climate change, the topic barely rated a mention in the Presidential debate. Photo: Getty ImagesLong stories short, here’s the top six news items of note in climate news for Aotearoa-NZ this week, and a discussion above between Bernard Hickey ...2 days ago - Using blunt instruments and magical thinking to ignore evidence of harm
The abrupt cancellations and suspensions of Government spending also caused private sector hiring, spending, and investment to freeze up for the first six months of the year. Photo: Lynn Grieveson / The KākāThis week we learned:The new National/ACT/NZ First Coalition Government ignored advice from Treasury that it didn’t have to ...2 days ago - Is This A Dagger Which I See Before Me: A Review and Analysis of The Rings of Power Episode 5 (Seaso...
Another week of The Rings of Power, season two, and another confirmation that things are definitely coming together for the show. The fifth Episode of season one represented the nadir of the series. Now? Amid the firmer footing of 2024, Episode Five represents further a further step towards excellent Tolkien ...2 days ago - In Open Seas; A Book
The background to In Open Seas: How the New Zealand Labour Government Went Wrong:2017-2023Not in Narrow Seas: The Economic History of Aotearoa New Zealand, published in 2020, proved more successful than either I or the publisher (VUP, now Te Herenga Waka University Press) expected. I had expected that it would ...2 days ago - The Hoon around the week to Sept 13
The podcast above of the weekly ‘Hoon’ webinar for paying subscribers on Thursday night features co-hosts and talking about the week’s news with:The Kākā’s climate correspondent on the latest climate science on rising temperatures and the climate implications of the US Presidential elections; and special guests Janet ...2 days ago
- Do or do not. There is no try
1. Upon receiving evidence that school lunches were doing a marvellous job of improving outcomes for students, David Seymour did what?a. Declared we need much more of this sort of good news and poured extra resources and funding into them b. Emailed Atlas network to ask what to do next c. Cut ...2 days ago - Dangerous ground
The Waitangi Tribunal has reported back on National's proposed changes to gut the Marine and Coastal Area Act and steal the foreshore and seabed for its greedy fishing-industry donors, and declared it to be another huge violation of ti Tiriti: The Waitangi Tribunal has found government changes to the ...3 days ago - Climate Change: National wants to cheat on Paris
In 2016, the then-National government signed the Paris Agreement, committing Aotearoa to a 30 (later 50) percent reduction in emissions by 2030. When questioned about how they intended to meet that target with their complete absence of effective climate policy, they made a lot of noise about how it was ...3 days ago
- Treasury warned Govt lower debt limits meant less ‘productivity-enhancing investment’
3 days ago - Is the Media Complicit?
This is a long read. Open to all.SYNOPSIS: Traditional media is at a cross roads. There is a need for those in the media landscape, as it stands, to earn enough to stay afloat, but also come across as balanced and neutral to keep its audiences.In America, NYT’s liberal leaning ...3 days ago - Black Friday
It's Black Friday, the end of the weekYou take my hand and hold it gently up against your cheekIt's all in my head, it's all in my mindI see the darkness where you see the lightSong by Tom OdellFriday the 13th, don’t be afraid.No, really, don’t. Everything has felt a ...3 days ago - Weekly Roundup 13-September-2024
Ooh, Friday the thirteenth. Spooky! Is that why certain zombie ideas have been stalking the landscape this week, like the Mayor’s brainwave for a motorway bridge from Kauri Point to Point Chev? Read on and find out. This roundup, like all our coverage, is brought to you by the Greater ...3 days ago - Skeptical Science New Research for Week #37 2024
Open access notables Early knowledge but delays in climate actions: An ecocide case against both transnational oil corporations and national governments, Hauser et al., Environmental Science & Policy: Cast within the wide context of investigating the collusion at play between powerful political-economic actors and decision-makers as monopolists and debates about ‘the modern ...3 days ago
- What it is
I liked what Kieran McAnulty had to say about the Treaty Principles bill this morning so much I've written it down and copied it out for you. He was saying that rather than let this piece of ordure spend six months in Select Committee, the Prime Minister could stop making such ...3 days ago - A government-funded hate campaign
Cabinet discussed National's constitutionally and historically illiterate "Treaty Principles Bill" this week, and decided to push on with it. The bill will apparently receive a full six month select committee process - unlike practically every other policy this government has pushed, and despite the fact that if the government is ...4 days ago
- How Substack works to take (some) craziness out of America’s elections
I spoke with Substack co-founder yesterday, just before the Trump-Harris debate, about how Substack is doing its thing during the US elections. He talks in particular about how Substack’s focus on paid subscriptions rather than ads has made political debate on the platform calmer, simpler, deeper and more satisfying ...4 days ago
- Kamala Harris Did Something Unthinkable
4 days ago - Kamala Harris Did Something Unthinkable
4 days ago
- Kamala Harris Did Something Unthinkable
4 days ago
- David Seymour is such a loser
For paid subscribersNot content with siphoning off $230,000,000 of taxpayers money for his hobby projects - and telling everyone his passion is education and early childcare - an intersection painfully coincidental to the interests of wealthy private families like Sean Plunkett’s1 backers, the Wright Family, Seymour is back in the ...4 days ago - Cross-party consensus: there’s no pipeline without good faith
There’s been a lot of talk recently about a cross-party agreement to develop a pipeline for infrastructure, including transport. Last month, outgoing CRL boss Sean Sweeney talked about the importance of securing an enduring infrastructure programme. He outlined the high costs of the relentless political flip-flopping of priorities, which drives ...4 days ago
- Voters love this climate policy they’ve never heard of
This is a re-post from Yale Climate Connections by Karin Kirk The Inflation Reduction Act is the Biden administration’s signature climate law and the largest U.S. government investment in reducing climate pollution to date. Among climate advocates, the policy is well-known and celebrated, but beyond that, only a minority of Americans ...4 days ago
- ACC wants to administer inflation at more than double the RBNZ’s target rate
ACC levies are set to rise at more than double the inflation rate targeted by the RBNZ. Photo: Lynn GrievesonKia ora. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Thursday, September 12:The state-owned monopoly for accident insurance wants ...4 days ago - Harris vs Trump
4 days ago - Treaty Bill “a political stunt”
Prime Minister Christopher Luxon appears to have given ACT Leader David Seymour more than he has been admitting in the proposals to go forward with a Treaty Principles Bill.All along, Luxon has maintained that the Government is proceeding with the Bill to honour the coalition agreement.But that is quite specific.It ...4 days ago
- An average 219 NZers migrated each day in July
Kia ora. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Wednesday, September 11:Annual migration of New Zealanders rose to a record-high 80,963 in the year to the end of July, which is more than double its pre-Covid levels.Two ...4 days ago - What you’re wanting to win more than anything is The Narrative
Hubris is sitting down on election day 2016 to watch that pig Trump get his ass handed to him, and watching the New York Times needle hover for a while over Hillary and then move across to Trump where it remains all night to your gathering horror and dismay. You're ...4 days ago - National’s automated lie machine
The government has a problem: lots of people want information from it all the time. Information about benefits, about superannuation, ACC coverage and healthcare, taxes, jury service, immigration - and that's just the routine stuff. Responding to all of those queries takes a lot of time and costs a lot ...5 days ago
- Christopher Luxon: A Man of “Faith” and “Compassion” Speaks on the Treaty Pr...
Synopsis: Today - we explore two different realities. One where National lost. And another - which is the one we are living with here. Note: the footnote on increased fees/taxes may be of interest to some readers.Article open.Subscribe nowIt’s an alternate timeline.Yesterday as news broke that the central North Island ...5 days ago - Member’s Day
Today is a Member's Day. First up is the third reading of Dan Bidois' Fair Trading (Gift Card Expiry) Amendment Bill, which will be followed by the committee stage of Deborah Russell's Family Proceedings (Dissolution for Family Violence) Amendment Bill. This will be followed by the second readings of Katie ...5 days ago
- Northern Expressway Boondoggle
Transport Minister Simeon Brown has been soaring high with his hubris of getting on and building motorways but some uncomfortable realities are starting to creep in. Back in July he announced that the government was pushing on with a Northland Expressway using an “accelerated delivery strategy” The Coalition Government is ...5 days ago
- Never Enough
However much I'm falling downNever enoughHowever much I'm falling outNever, never enough!Whatever smile I smile the mostNever enoughHowever I smile I smile the mostSongwriters: Robert James Smith / Simon Gallup / Boris Williams / Porl ThompsonToday in Nick’s Kōrero:A death in the Emergency Department at Rotorua Hospital.A sad homecoming and ...5 days ago - Question Two of The Kākā Project of 2026 for 2050 (TKP 26/50)
Kia ora.Last month I proposed restarting The Kākā Project work done before the 2023 election as The Kākā Project of 2026 for 2050 (TKP 26/50), aiming to be up and running before the 2025 Local Government elections, and then in a finalised form by the 2026 General Elections.A couple of ...5 days ago
- Why is God Obsessed with Spanking?
Hi,If you’ve read Webworm for a while, you’ll be aware that I’ve spent a lot of time writing about horrific, corrupt megachurches and the shitty men who lead them.And in all of this writing, I think some people have this idea that I hate Christians or Christianity. As I explain ...5 days ago - Inside the public service
In 2023, there were 63,117 full-time public servants earning, on average, $97,200 a year each. All up, that is a cost to the Government of $6.1 billion a year. It’s little wonder, then, that the public service has become a political whipping boy castigated by the Prime Minister and members ...5 days ago
- New Models Show Stronger Atlantic Hurricanes, and More of Them
This is a re-post from This is Not Cool Here’s an example of some of the best kind of climate reporting, especially in that it relates to impacts that will directly affect the audience. WFLA in Tampa conducted a study in collaboration with the Department of Energy, analyzing trends in ...5 days ago
- Where ever do they find these people?
A riddle wrapped in a mystery inside an enigma, is how Winston Churchill described the Soviet Union in 1939. How might the great man have described the 2024 government of New Zealand, do we think? I can't imagine he would have thought them all that mysterious or enigmatic. I think ...5 days ago - Motorway madness
How mad is National's obsession with roads? One of their pet projects - a truck highway to Whangārei - is going to eat 10% of our total infrastructure budget for the next 25 years: Official advice from the Infrastructure Commission shows the government could be set to spend 10 ...6 days ago
- Our transport planning system is fundamentally broken
Ever since Wayne Brown became mayor (nearly two years ago now) he’s been wanting to progress an “integrated transport plan” with the government – which sounded a lot like the previous Auckland Transport Alignment Project (ATAP) with just a different name. It seems like a fair bit of work progressed ...6 days ago
- Thou Shalt Not Steal
And they taught usWhoa-oh, black woman, thou shalt not stealI said, hey, yeah, black man, thou shalt not stealWe're gonna civilise your black barbaric livesAnd we teach you how to kneelBut your history couldn't hide the genocideThe hypocrisy to us was realFor your Jesus said you're supposed to giveThe oppressed ...6 days ago - How mismanagement, not wind and solar energy, causes blackouts
This is a re-post from Yale Climate Connections In February 2021, several severe storms swept across the United States, culminating with one that the Weather Channel unofficially named Winter Storm Uri. In Texas, Uri knocked out power to over 4.5 million homes and 10 million people. Hundreds of Texans died as a ...6 days ago
- The ‘Infra Boys’ Highway to Budget Hell
Chris Bishop has enthusiastically dubbed himself and Simeon Brown “the Infra Boys”, but they need to take note of the sums around their roading dreams. Photo: Lynn GrievesonMōrena. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Tuesday, September ...6 days ago - Media Link: “AVFA” on the politics of desperation.
In this podcast Selwyn Manning and I talk about what appears to be a particular type of end-game in the long transition to systemic realignment in international affairs, in which the move to a new multipolar order with different characteristics … Continue reading ...6 days ago - The cost of flying blind
Just over two years ago, when worries about immediate mass-death from covid had waned, and people started to talk about covid becoming "endemic", I asked various government agencies what work they'd done on the costs of that - and particularly, on the cost of Long Covid. The answer was that ...6 days ago
- Seymour vs The Clergy
For paid subscribers“Aotearoa is not as malleable as they think,” Lynette wrote last week on Homage to Simeon Brown:In my heart/mind, that phrase ricocheted over the next days, translating out to “We are not so malleable.”It gave me comfort. I always felt that we were given an advantage in New ...7 days ago - Unstoppable Minister McKee
All smiles, I know what it takes to fool this townI'll do it 'til the sun goes downAnd all through the nighttimeOh, yeahOh, yeah, I'll tell you what you wanna hearLeave my sunglasses on while I shed a tearIt's never the right timeYeah, yeahSong by SiaLast night there was a ...7 days ago - Could outdoor dining revitalise Queen Street?
This is a guest post by Ben van Bruggen of The Urban Room,.An earlier version of this post appeared on LinkedIn. All images are by Ben. Have you noticed that there’s almost nowhere on Queen Street that invites you to stop, sit outside and enjoy a coffee, let alone ...7 days ago
- Hipkins challenges long-held Labour view Government must stay below 30% of GDP
Hipkins says when considering tax settings and the size of government, the big question mark is over what happens with the balance between the size of the working-age population and the growing number of Kiwis over the age of 65. Photo: Lynn Grieveson / The KākāMōrena. Long stories short; here’s ...7 days ago - Your invite to Webworm Chat (a bit like Reddit)
Hi,One of the things I love the most about Webworm is, well, you. The community that’s gathered around this lil’ newsletter isn’t something I ever expected when I started writing it four years ago — now the comments section is one of my favourite places on the internet. The comments ...7 days ago - Seymour’s Treaty bill making Nats nervous
A delay in reappointing a top civil servant may indicate a growing nervousness within the National Party about the potential consequences of David Seymour’s Treaty Principles Bill. Dave Samuels is waiting for reappointment as the Chief Executive of Te Puni Kokiri, but POLITIK understands that what should have been a ...7 days ago
- 2024 SkS Weekly Climate Change & Global Warming News Roundup #36
A listing of 34 news and opinion articles we found interesting and shared on social media during the past week: Sun, September 1, 2024 thru Sat, September 7, 2024. Story of the week Our Story of the Week is about how peopele are not born stupid but can be fooled ...1 week ago
- Time for a Change
You act as thoughYou are a blind manWho's crying, crying 'boutAll the virgins that are dyingIn your habitual dreams, you knowSeems you need more sleepBut like a parrot in a flaming treeI know it's pretty hard to seeI'm beginning to wonderIf it's time for a changeSong: Phil JuddThe next line ...1 week ago - Security Politics in Peripheral Democracies: Excerpt Six.
The “double shocks” in post Cold War international affairs. The end of the Cold War fundamentally altered the global geostrategic context. In particular, the end of the nuclear “balance of terror” between the USA and USSR, coupled with the relaxation … Continue reading ...1 week ago
- Buried deep
Here's a bike on Manchester St, Feilding. I took this photo on Friday night after a very nice dinner at the very nice Vietnamese restaurant, Saigon, on Manchester Street.I thought to myself, Manchester Street? Bicycle? This could be the very spot.To recap from an earlier edition: on a February night ...1 week ago - Security Politics in Peripheral Democracies, Excerpt Five.
Military politics as a distinct “partial regime.” Notwithstanding their peripheral status, national defense offers the raison d’être of the combat function, which their relative vulnerability makes apparent, so military forces in small peripheral democracies must be very conscious of events … Continue reading ...1 week ago
- Leadership for Dummies
If you’re going somewhere, do you maybe take a bit of an interest in the place? Read up a bit on the history, current events, places to see - that sort of thing? Presumably, if you’re taking a trip somewhere, it’s for a reason. But what if you’re going somewhere ...1 week ago - Home again
1 week ago - Dead even tie for hottest August ever
Long stories short, here’s the top six news items of note in climate news for Aotearoa-NZ this week, and a discussion above between Bernard Hickey and The Kākā’s climate correspondent Cathrine Dyer:The month of August was 1.49˚C warmer than pre-industrial levels, tying with 2023 for the warmest August ever, according ...1 week ago
- The Hoon around the week to Sept 7
The podcast above of the weekly ‘Hoon’ webinar for paying subscribers on Thursday night features co-hosts and talking about the week’s news with:The Kākā’s climate correspondent on the latest climate science on rising temperatures and the debate about how to responde to climate disinformation; and special guest ...1 week ago
- Have We an Infrastructure Deficit?
An Infrastructure New Zealand report says we are keeping up with infrastructure better than we might have thought from the grumbling. But the challenge of providing for the future remains.I was astonished to learn that the quantity of our infrastructure has been keeping up with economic growth. Your paper almost ...1 week ago - Councils reject racism
Last month, National passed a racist law requiring local councils to remove their Māori wards, or hold a referendum on them at the 2025 local body election. The final councils voted today, and the verdict is in: an overwhelming rejection. Only two councils out of 45 supported National's racist agenda ...1 week ago
- Homage to Simeon Brown
1 week ago
- Government of deceit
When National cut health spending and imposed a commissioner on Te Whatu Ora, they claimed that it was necessary because the organisation was bloated and inefficient, with "14 layers of management between the CEO and the patient". But it turns out they were simply lying: Health Minister Shane Reti’s ...1 week ago
- Release: Māori business not a priority for this Govt
Scrapping the Progressive Procurement programme designed to support and grow Māori businesses is a missed opportunity. ...12 hours ago - Release: March 15 inquiry grants cut by Government
Justice Minister Paul Goldsmith has cut grants helping overseas family of victims to attend the next phase of the Coronial Inquiry into the 15 March 2019 Christchurch Masjidain Attack. ...13 hours ago
- Minister of Injustice seeks to Entrench largest land confiscation in History
The Waitangi Tribunal has released an Urgent Report on the Government’s proposed amendments to the Takutai Moana Act 2011. The report calls out Paul Goldsmith’s proposal for what it is: a “gross breach of the Treaty” and an “illegitimate exercise of kāwanatanga”. The Tribunal is recommending the Crown step down ...2 days ago
- Takutai Moana changes another assault on Te Tiriti
The Government must abandon its Marine and Coastal Area (Takutai Moana) Act interventions after the Waitangi Tribunal found it was committing gross breaches of the Treaty. ...2 days ago - Greens call on Govt to leave Te Reo in schools alone
As Te Wiki o te Reo Māori approaches, the Government is considering deprioritising teaching Te Reo Māori in our schools. ...3 days ago
- Govt cannot ignore racism
The Government’s directive to the public service to ignore race is nothing more than a dog whistle and distraction from the structural racism we need to address. ...3 days ago
- Release: Lemauga Lydia Sosene to take medical leave
Labour’s Mangere MP Lemauga Lydia Sosene has been diagnosed with breast cancer and will shortly take medical leave. ...3 days ago
- Potential intelligence sharing with Israel must be investigated
Concerns have been raised that our spy arrangements may mean that intelligence is being shared between Aotearoa and Israel. An urgent inquiry must be launched in response to this. ...3 days ago
- Release: Charter schools undermine our education system
The Government is taking a wrecking ball to our public education system by reinstating charter schools. ...4 days ago
- Youngest MP to travel to Canada to accept Politician of the Year Award
Aotearoa’s Youngest Member of Parliament, and Te Pāti Māori MP, Hana-Rawhiti Maipi-Clarke, will travel to Montreal to accept the One Young World Politician of the Year Award next week. The One Young World Politician of the Year Award was created in 2018 to recognise the most promising young politicians between ...4 days ago
- Greens celebrate huge step forward for ADHD community
The Greens welcome today’s long-coming announcement by Pharmac of consultation to remove the special authority renewal criteria for methylphenidate, dexamfetamine and modafinil and to fund lisdexamfetamine. ...4 days ago
- Release: Millions to be spent dividing NZ for no reason
The National Party is wasting millions of dollars allowing David Seymour’s Treaty Principals Bill to be drafted and go to Select Committee. ...4 days ago
- Release: New Zealanders departing our shores at a record rate
The Migration figures released by Stats NZ today show National is continuing to drive Kiwis away from New Zealand in record numbers. ...4 days ago
- Te Tai Tokerau MP Slams Govt Overreach in Scrapping Māori Wards
Mema Paremata for Te Tai Tokerau, Mariameno Kapa-Kingi, has reflected on the decisions made by the councils of the North amidst the government’s push to remove Māori Wards and weaken mana whenua representation. “Actions taken by the Kaipara District Council to remove Māori Wards are the embodiment of the eradication ...4 days ago
- Govt already seeking advice on Treaty referendum
On one hand, the Prime Minister has assured Aotearoa that his party will not support the Treaty Principles Bill beyond first reading, but on the other, his Government has already sought advice on holding a referendum on our founding document. ...4 days ago
- Release: Aged care will be worse off if redesign rushed
New Zealanders needing aged care support and the people who care for them will be worse off if the Government pushes through a flawed and rushed redesign of dementia and aged care. ...4 days ago
- Release: Govt fails hundreds of workers as mills close
Labour is devastated at news hundreds of workers are set to lose their jobs following the closure of Winstone Pulp mills. ...5 days ago
- Job losses from mill closures consequence of Govt inaction
Hundreds of jobs lost as a result of pulp mill closures in the Ruapehu District are a consequence of government inaction in addressing the shortfalls of our electricity network. ...5 days ago
- Ngarewa-Packer devastated for Ruapehu following WPI closure
Te Pāti Māori Co-Leader and MP for Te Tai Hauāuru is devastated for the Ruapehu community following today’s decision to close two Winstone Pulp mills. “My heart goes out to all the workers, their whānau, and the wider Ruapehu community affected by the closure of Winstone Pulp International,” said Ngarewa-Packer. ...6 days ago
- Release: Cabinet should stop the Treaty Principles Bill
National Party Ministers have a majority in Cabinet and can stop David Seymour’s Treaty Principles Bill, which even the Prime Minister has described as “divisive and unhelpful.” ...7 days ago
- Release: Staff gagged to keep fast track list secret
The National Government is so determined to hide the list of potential projects that will avoid environmental scrutiny it has gagged Ministry for the Environment staff from talking about it. ...7 days ago
- Release: Labour challenges Te Whatu Ora gag orders
Labour has complained to the Te Kawa Mataaho Public Service Commission about the high number of non-disclosure agreements that have effectively gagged staff at Te Whatu Ora Health NZ from talking about anything relating to their work. ...7 days ago
- Greens call on Treaty Principles Bill to be abandoned after letter from Christian leaders
The Green Party is once again urging the Prime Minister to abandon the Treaty Principles Bill as a letter from more than 400 Christian leaders calls for the proposed legislation to be dropped. ...7 days ago
- Sign the petition: Keep military-style firearms off our streets
Help us tell the Government that reintroducing military-style firearms should not be up for debate. ...1 week ago
- Vast majority of councils support Māori wards
Councils across the country have now decided where they stand regarding Māori wards, with a resounding majority in favour of keeping them in what is a significant setback for the Government. ...1 week ago
- Release: Government on the wrong side of Māori wards
The National-led government has been given a clear message from the local government sector, as almost all councils reject the Government’s bid to treat Māori wards different to other wards. ...1 week ago
- Release: Labour congratulates Kuīni Ngā Wai hono i te po Paki
The Labour Party congratulates Kuīni Ngā Wai hono i te po Paki on being crowned as the eighth Te Ariki Nui – head of Te Kiingitanga. ...2 weeks ago
- Green Party welcomes new Maaori Kuiini
The Green Party welcomes the coronation of the new Maaori Kuiini, Te Arikinui Nga Wai Hono i te Po, today in Turangawaewae. ...2 weeks ago
- ECE teachers deserve better than this Government
The Green Party is unsurprised but disappointed by today’s announcement from the Government that will see our Early Childhood Centre teachers undermined and pay parity pushed further out of reach. ...2 weeks ago
- Urgent intervention needed on supermarkets
The Green Party is calling on the Government to intervene in the supermarket duopoly dominating our supply of groceries following today’s report from the Commerce Commission. ...2 weeks ago
- Release: Rainbow youth neglected in mental health funding
Labour backs the call from The Rainbow Support Collective members for mental health funding specifically earmarked for grassroots and peer led community organisations to be set up in a way that they are able to access. ...2 weeks ago
- Release: Transport in NZ has to be more than just roads
As expected, the National Land Transport Programme lacks ambition for our cities and our country’s rail network and puts the majority of investment into roads. ...2 weeks ago
- Speech: Barbara Edmonds Building Nations 2024
Tēnā koutou katoa, Thank you for your warm welcome and for having my colleagues and I here today. Earlier you heard from the Labour Leader, Chris Hipkins, on our vision for the future of infrastructure. I want to build on his comments and provide further detail on some key elements ...2 weeks ago
- Govt transport plan deepens fossil fuel fix
The Green Party says the Government’s new National Land Transport Programme marks another missed opportunity to take meaningful action to fight the climate crisis. ...2 weeks ago
- Greens call for public to back Wrybill in BOTY and beyond
The Green Party is calling on the public to support the Ngutu Pare Wrybill not just in this year’s Bird of the Year competition but also in pushing back against policies that could lead to the destruction of its habitat and accelerate its extinction. ...2 weeks ago
- Building consents data bad news for construction
News that the annual number of building consents granted for new homes fell by more than 20 percent for the year ended July 2024, is bad news for the construction industry. ...2 weeks ago
- Te Pāti Māori Pay Tribute to Kiingi Tūheitia Pōtatau Te Wherowhero VII
Papā te whatitiri, hikohiko te uira, i kanapu ki te rangi, i whētuki i raro rā, rū ana te whenua e. Uea te pou o tōku whare kia tū tangata he kapua whakairi nāku nā runga o Taupiri. Ko taku kiri ka tōkia ki te anu mātao. E te iwi ...2 weeks ago
- Release: Gaps still to be addressed in callouts response
The Government must guarantee New Zealanders will not be at risk after making changes to the way mental health callouts are handled. ...2 weeks ago
- Poroporoaki: Kiingi Tuheitia passing
Haere e te Kīngi o te kotahitangi Haere ki o nui, ki o rahi I te pō ...2 weeks ago
- Green Party pays respects to Kiingi Tuuheitia
The Green Party is paying tribute to the Māori King, Kiingi Tuuheitia Pootatau Te Wherowhero XVII, after he passed away earlier this morning. ...2 weeks ago
- Serious assaults down 22% in Auckland CBD
Cross-government action to tackle crime and antisocial behaviour in Auckland is getting traction, says Police Minister Mark Mitchell. “Our central cities should be great places to live and work, but in recent years they have become hot spots for crime and anti-social behaviour. In Auckland, businesses and residents suffered as ...9 hours ago - Draft critical minerals list released for consultation
A draft list of minerals deemed essential to New Zealand’s economy and strengthening its mineral resilience has been released for consultation, Resources Minister Shane Jones says. The draft Critical Minerals List identifies 35 minerals essential to economic functions, are in demand internationally, and face high risk of supply disruption domestically ...12 hours ago
- Government eliminates $190 million in trade barriers to boost the economy
The Government has successfully removed trade barriers affecting nearly $190 million worth of exports to help grow the economy, Minister for Trade and Agriculture Todd McClay today announced. “In the past year, we have resolved 14 Non Tariff Barriers (NTBs), returning significant value to kiwi exporters. These efforts directly boost our ...18 hours ago
- Reo Māori the ‘beating heart’ of Aotearoa New Zealand
From private business to the Paris Olympics, reo Māori is growing with the success of New Zealanders, says Minister for Māori Development Tama Potaka. “I’m joining New Zealanders across the country in celebrating this year’s Te Wiki o te Reo Māori – Māori Language Week, which has a big range ...2 days ago
- Need and value at forefront of public service delivery
New Cabinet policy directives will ensure public agencies prioritise public services on the basis of need and award Government contracts on the basis of public value, Minister for the Public Service Nicola Willis says. “Cabinet Office has today issued a circular to central government organisations setting out the Government’s expectations ...3 days ago
- Minister to attend Police Ministers Council Meeting
Police Minister Mark Mitchell will join with Australian Police Ministers and Commissioners at the Police Ministers Council meeting (PMC) today in Melbourne. “The council is an opportunity to come together to discuss a range of issues, gain valuable insights on areas of common interest, and different approaches towards law enforcement ...3 days ago
- New Bill to crack down on youth vaping
The coalition Government has introduced legislation to tackle youth vaping, Associate Health Minister Casey Costello announced today. “The Smokefree Environments and Regulated Products Amendment Bill (No 2) is aimed at preventing youth vaping. “While vaping has contributed to a significant fall in our smoking rates, the rise in youth vaping ...3 days ago
- Interest in agricultural and horticultural products regulatory review welcomed
Regulation Minister David Seymour, Environment Minister Penny Simmonds, and Food Safety Minister Andrew Hoggard have welcomed interest in the agricultural and horticultural products regulatory review. The review by the Ministry for Regulation is looking at how to speed up the process to get farmers and growers access to the safe, ...3 days ago
- Bill to allow online charity lotteries passes first reading
Minister of Internal Affairs Brooke van Velden says the Government is moving at pace to ensure lotteries for charitable purposes are allowed to operate online permanently. Charities fundraising online, such as those run by the Heart Foundation, Coastguard NZ, Auckland Rescue Helicopter Trust and local hospices will continue to do ...3 days ago
- Tax exempt threshold changes to benefit startups
Technology companies are among the startups which will benefit from increases to current thresholds of exempt employee share schemes, Science, Innovation and Technology Minister Judith Collins and Revenue Minister Simon Watts say. Tax exempt thresholds for the schemes are increasing as part of the Taxation (Annual Rates for 2024-25, Emergency ...3 days ago
- Getting the healthcare you need, when you need it
The path to faster cancer treatment, an increase in immunisation rates, shorter stays in emergency departments and quick assessment and treatments when you are sick has been laid out today. Health Minister Dr Shane Reti has revealed details of how the ambitious health targets the Government has set will be ...4 days ago
- Targeted supports to accelerate reading
The coalition Government is delivering targeted and structured literacy supports to accelerate learning for struggling readers. From Term 1 2025, $33 million of funding for Reading Recovery and Early Literacy Support will be reprioritised to interventions which align with structured approaches to teaching. “Structured literacy will change the way children ...4 days ago
- Survivors invited to Abuse in Care national apology
With two months until the national apology to survivors of abuse in care, expressions of interest have opened for survivors wanting to attend. “The Prime Minister will deliver a national apology on Tuesday 12 November in Parliament. It will be a very significant day for survivors, their families, whānau and ...4 days ago
- Rangatahi inspire at Ngā Manu Kōrero final
Ehara taku toa i te toa takitahi, engari he toa takitini kē - My success is not mine alone but is the from the strength of the many. Aotearoa New Zealand’s top young speakers are an inspiration for all New Zealanders to learn more about the depth and beauty conveyed ...4 days ago
- Driving structured literacy in schools
The coalition Government is driving confidence in reading and writing in the first years of schooling. “From the first time children step into the classroom, we’re equipping them and teachers with the tools they need to be brilliant in literacy. “From 1 October, schools and kura with Years 0-3 will receive ...4 days ago
- Labour’s misleading information is disappointing
Labour’s misinformation about firearms law is dangerous and disappointing, Associate Justice Minister Nicole McKee says. “Labour and Ginny Andersen have repeatedly said over the past few days that the previous Labour Government completely banned semi-automatic firearms in 2019 and that the Coalition Government is planning to ‘reintroduce’ them. ...4 days ago
- Govt takes action on mpox response, widens access to vaccine
The Government is taking immediate action on a number of steps around New Zealand’s response to mpox, including improving access to vaccine availability so people who need it can do so more easily, Health Minister Dr Shane Reti and Associate Health Minister David Seymour announced today. “Mpox is obviously a ...5 days ago
- Next steps agreed for Treaty Principles Bill
Associate Justice Minister David Seymour says Cabinet has agreed to the next steps for the Treaty Principles Bill. “The Treaty Principles Bill provides an opportunity for Parliament, rather than the courts, to define the principles of the Treaty, including establishing that every person is equal before the law,” says Mr Seymour. “Parliament ...5 days ago
- Government unlocking potential of AI
Science, Innovation and Technology Minister Judith Collins today announced a programme to drive Artificial Intelligence (AI) uptake among New Zealand businesses. “The AI Activator will unlock the potential of AI for New Zealand businesses through a range of support, including access to AI research experts, technical assistance, AI tools and resources, ...5 days ago
- Government releases Wairoa flood review findings
The independent rapid review into the Wairoa flooding event on 26 June 2024 has been released, Environment Minister Penny Simmonds, Local Government Minister Simeon Brown and Emergency Management and Recovery Minister Mark Mitchell announced today. “We welcome the review’s findings and recommendations to strengthen Wairoa's resilience against future events,” Ms ...5 days ago
- Promoting faster payment times for government
The Government is sending a clear message to central government agencies that they must prioritise paying invoices in a timely manner, Small Business and Manufacturing Minister Andrew Bayly says. Data released today promotes transparency by publishing the payment times of each central government agency. This data will be published quarterly ...5 days ago
- Acknowledgement to Kīngi Tuheitia speech
E te māngai o te Whare Pāremata, kua riro māku te whakaputa i te waka ki waho moana. E te Pirimia tēnā koe.Mr Speaker, it is my privilege to take this adjournment kōrero forward. Prime Minister – thank you for your leadership. Taupiri te maunga Waikato te awa Te Wherowhero ...5 days ago
- Interim fix to GST adjustment rules to support businesses
Inland Revenue can begin processing GST returns for businesses affected by a historic legislative drafting error, Revenue Minister Simon Watts says. “Inland Revenue has become aware of a legislative drafting error in the GST adjustment rules after changes were made in 2023 which were meant to simplify the process. This ...6 days ago
- Strong uptake for cervical screening self-test
More than 80 per cent of New Zealand women being tested have opted for a world-leading self-test for cervical screening since it became available a year ago. Minister of Health Dr Shane Reti and Associate Minister Casey Costello, in her responsibility for Women’s Health, say it’s fantastic to have such ...6 days ago
- Ministry for Regulation’s first Strategic Intentions document sets ambitious direction
Regulation Minister David Seymour welcomes the Ministry for Regulation’s first Strategic Intentions document, which sets out how the Ministry will carry out its work and deliver on its purpose. “I have set up the Ministry for Regulation with three tasks. One, to cut existing red tape with sector reviews. Two, ...6 days ago
- Māori Education Advisory Group established
The Education Minister has established a Māori Education Ministerial Advisory Group made up of experienced practitioners to help improve outcomes for Māori learners. “This group will provide independent advice on all matters related to Māori education in both English medium and Māori medium settings. It will focus on the most impactful ways we can lift ...6 days ago
- Government welcomes findings of NZ Superannuation Fund review
The Government has welcomed the findings of the recent statutory review into the Guardians of New Zealand Superannuation and the New Zealand Superannuation Fund, Minister of Finance Nicola Willis says. The 5-yearly review, conducted on behalf of Treasury and tabled in Parliament today, found the Guardians of New Zealand Superannuation ...6 days ago
- First of five new Hercules aircraft takes flight
Defence Minister Judith Collins today welcomed the first of five new C-130J-30 Hercules to arrive in New Zealand at a ceremony at the Royal New Zealand Air Force’s Base Auckland, Whenuapai. “This is an historic day for our New Zealand Defence Force (NZDF) and our nation. The new Hercules fleet ...6 days ago
- Have your say on suicide prevention
Today, September 10 is World Suicide Prevention Day, a time to reflect on New Zealand’s confronting suicide statistics, Mental Health Minister Matt Doocey says. “Every death by suicide is a tragedy – a tragedy that affects far too many of our families and communities in New Zealand. We must do ...6 days ago
- Action to grow the rural health workforce
Scholarships awarded to 27 health care students is another positive step forward to boost the future rural health workforce, Associate Health Minister Matt Doocey says. “All New Zealanders deserve timely access to quality health care and this Government is committed to improving health outcomes, particularly for the one in five ...7 days ago
- Pharmac delivering more for Kiwis following major funding boost
Associate Health Minister with responsibility for Pharmac David Seymour has welcomed the increased availability of medicines for Kiwis resulting from the Government’s increased investment in Pharmac. “Pharmac operates independently, but it must work within the budget constraints set by the Government,” says Mr Seymour. “When our Government assumed office, New ...7 days ago
- Sport Minister congratulates NZ’s Paralympians
Sport & Recreation Minister Chris Bishop has congratulated New Zealand's Paralympic Team at the conclusion of the Paralympic Games in Paris. “The NZ Paralympic Team's success in Paris included fantastic performances, personal best times, New Zealand records and Oceania records all being smashed - and of course, many Kiwis on ...7 days ago
- Government progresses response to Abuse in Care recommendations
A Crown Response Office is being established within the Public Service Commission to drive the Government’s response to the Royal Commission into Abuse in Care. “The creation of an Office within a central Government agency was a key recommendation by the Royal Commission’s final report. “It will have the mandate ...1 week ago
- Passport wait times back on-track
Minister of Internal Affairs Brooke van Velden says passport processing has returned to normal, and the Department of Internal Affairs [Department] is now advising customers to allow up to two weeks to receive their passport. “I am pleased that passport processing is back at target service levels and the Department ...1 week ago
- New appointments to the FMA board
Commerce and Consumer Affairs Minister has today announced three new appointments and one reappointment to the Financial Markets Authority (FMA) board. Tracey Berry, Nicholas Hegan and Mariette van Ryn have been appointed for a five-year term ending in August 2029, while Chris Swasbrook, who has served as a board member ...1 week ago
- District Court judges appointed
Attorney-General Hon Judith Collins today announced the appointment of two new District Court judges. The appointees, who will take up their roles at the Manukau Court and the Auckland Court in the Accident Compensation Appeal Jurisdiction, are: Jacqui Clark Judge Clark was admitted to the bar in 1988 after graduating ...1 week ago
- Government makes it faster and easier to invest in New Zealand
Associate Minister of Finance David Seymour is encouraged by significant improvements to overseas investment decision timeframes, and the enhanced interest from investors as the Government continues to reform overseas investment. “There were about as many foreign direct investment applications in July and August as there was across the six months ...1 week ago
- New Zealand to join Operation Olympic Defender
New Zealand has accepted an invitation to join US-led multi-national space initiative Operation Olympic Defender, Defence Minister Judith Collins announced today. Operation Olympic Defender is designed to coordinate the space capabilities of member nations, enhance the resilience of space-based systems, deter hostile actions in space and reduce the spread of ...2 weeks ago
- Government commits to ‘stamping out’ foot and mouth disease
Biosecurity Minister Andrew Hoggard says that a new economic impact analysis report reinforces this government’s commitment to ‘stamp out’ any New Zealand foot and mouth disease incursion. “The new analysis, produced by the New Zealand Institute of Economic Research, shows an incursion of the disease in New Zealand would have ...2 weeks ago
- Improving access to finance for Kiwis
5 September 2024 The Government is progressing further reforms to financial services to make it easier for Kiwis to access finance when they need it, Commerce and Consumer Affairs Minister Andrew Bayly says. “Financial services are foundational for economic success and are woven throughout our lives. Without access to finance our ...2 weeks ago
- Order In Council Rarely Appropriate For Firearms Law
COLFO strongly encourages Governments to use the full legislative process, including public consultation with vulnerable communities, for significant changes, to create enduring firearms laws that increase public safety. ...46 mins ago - NZCTU Slams Govt For Failing Mill Workers
NZCTU criticises the Government for neglecting to save 300 jobs in Ruapehu after Winstone Pulp International's mill closures, highlighting regional economic impacts and the need for proactive support. ...54 mins ago
- Closure Of Winstone Pulp International Shows Need For Urgent Change In Electricity Market
Octopus Energy's COO warns that New Zealand's prolonged high electricity prices necessitate urgent regulatory changes for increased market competition and improved investment. ...54 mins ago
- Global Indigenous Leaders Condemn New Zealand Government Treatment Of Māori
Global Indigenous leaders and environmentalists condemn New Zealand's Treaty Principles Bill as a significant affront to Māori rights and democratic processes, urging government respect for Te Tiriti o Waitangi. ...54 mins ago
- Wadestown Residents Reject Wadestown Connections Proposal
Wadestown residents firmly oppose Wellington City Council's proposed cycle lanes and parking management changes, demanding a comprehensive re-evaluation that prioritises community input. ...55 mins ago
- BSA Report Bangs Drum For Censorship By Claiming Freedom Of Expression Causes ‘harm’, From Self-...
The BSA's report on harmful speech raises concerns about subjectivity and potential censorship of controversial views, according to Free Speech Union’s Chief Executive Jonathan Ayling. ...58 mins ago
- IRD Betrays Taxpayers By Leaking Personal Information
Concerns arise over IRD allegedly sharing sensitive taxpayer data with tech giants, prompting calls for accountability and privacy protection from the New Zealand Taxpayers' Union. ...1 hour ago
- 400 Christian Leaders Call On MPs To Vote Down The Treaty Principles Bill
Over 440 Christian leaders oppose the coalition's Treaty Principles Bill, asserting it undermines Te Tiriti o Waitangi's recognition of Māori rights and relationships with the Crown. ...1 hour ago
- NZTA Commitment To Accessibility Questioned Following Block Of E-scooter Remote Piloting
Disability advocacy groups criticise NZTA’s decision to block Ario’s remote e-scooter reparking technology, arguing it undermines accessibility and safety in urban environments. ...1 hour ago
- MUNZ Back Struggle Of Australian Unions Against Anti-Union, Anti-worker Laws
The Maritime Union of New Zealand is federated with the Maritime Union of Australia, and the MUA and the wider CFMEU have our full support in their struggle. ...1 hour ago
- Metlink Spends More Than $1.3 Million On Seven Toilets
At an average cost of over $185,000 per toilet, it makes you wonder – are the seats made of gold? ...1 hour ago
- Aotearoa’s Moral Crossroads – The True Cost Of Live Animal Exports
Defending Aotearoa's Moral Victory - The Fight to Preserve Our Live Export Ban ...1 hour ago
- Two Prominent Free Speech Advocates To Tour New Zealand With Free Speech Union Before End Of The Yea...
We’re thrilled to announce that Distinguished Prof. Nigel Biggar (Oxford University) and Dr. Peter Boghossian (Portland State University) will both tour New Zealand with the Free Speech Union before the end of the year, says Nathan Seiuli, the Free Speech ...1 hour ago
- Confirmed Candidates For 2024 TECT Trustee Election
Nominations for the 2024 trustee election for the TECT Community Trust closed at 12 noon, Wednesday 4 September. The following 9 nominations were received for the 3 vacancies on the Trust: ...1 hour ago
- Footage Released By Greenpeace Reveals Damage In The Deep Ocean From Industrial Fishing
The compelling evidence emphasises how this precious ecosystem has been decimated by years of bottom trawling, which involves dragging heavy weighted fishing gear across the sea floor, destroying fragile communities that take thousands of years ...1 hour ago
- 20 dead – PNG women, girls flee tribal fighting in Porgera mine valley
By Miriam Zarriga in Port Moresby Women, girls, the elderly, and young boys have rushed to pack any vehicle they could as they escaped heavy tribal fighting that has erupted in Papua New Guinea’s Porgera Valley. The sound of gunfire erupts in the peaceful valley, shouts of war follow the ...3 hours ago - Wellington City Council Taking Ratepayers For A Ride With $563k Bike Rack
“These latest figures on the costs of Wellington City Council’s latest bike rack have truly humbled the Taxpayer’s Union. Imagine a Council so incompetent it can make its previous $84k bike rack blowout look almost reasonable in comparison. ...4 hours ago
- Save The Children Opposes Proposed Changes To Schools’ Legislated Objectives
Save the Children is extremely concerned the Government’s proposal to narrow the focus of schools’ legislated education objectives to prioritise achievement and remove references to children’s rights will have a detrimental impact on children ...4 hours ago
- South Taranaki Proves Luxon Right
The New Zealand Taxpayers Union can reveal through the Local Government Official Information and Meetings Act that South Taranaki District Council’s new cultural centre (Te Ramanui O Ruaputahanga) has blown out from a starting point of $8 million ...4 hours ago
- Disturbing Data In Latest “Assisted Dying” Report
The latest review of assisted suicide / euthanasia was quietly released last month by the Ministry of Health – but it should sound significant and loud warning bells about the law, especially at a time when proponents want it to be liberalised even ...4 hours ago
- Government Cuts To Pay Parity Don’t Help Children
All teachers deserve to be paid fairly. We have a shortage of qualified early childhood staff in Aotearoa and are already losing teachers overseas. Reducing pay and conditions for relief teachers won’t make that problem any better. ...4 hours ago
- Common Sense (finally) Prevails With Pause On Freshwater Farm Plan Rollout
Federated Farmers says pressing pause on the rollout of freshwater farm plans until improvements can be made is a practical and pragmatic step from the Government. ...4 hours ago
- Disabled People Invisible In Too Many Government Announcements
Too many government announcements affecting disabled people don’t even mention disabled people, leaving the community googling for answers, and feeling forgotten or invisible. ...4 hours ago
- Canterbury Bridge Blowing Out $13.5 Million Budget With Nothing To Show For It
Despite Kaikōura District Council’s project to rebuild the Waiau Toa/Clarence River Glen Alton bridge after the Kaikōura earthquake being eight years deep, the Council have still not even managed to gain the appropriate resource consents or ...4 hours ago
- Misogyny Behind Attacks On Women’s Rights Campaigners And Women Politicians, The Women’s...
A man who threw what turned out to be tomato juice at UK women’s rights advocate Kellie-Jay Keen and Tania Sturt, an organiser of the “Let Women Speak” event in Auckland’s Albert Park on 25 March last year, has been convicted of assault ...4 hours ago
- Panel Discussion Featuring Global Experts Will Raise Awareness About Apartheid Against Women In Iran...
The panellists will speak about the importance of formal recognition of gender apartheid, give background as to the situation of women and girls in Iran and Afghanistan and outline a way forward towards greater equality and basic rights for all. ...4 hours ago
- Catholic Church Abuse Survivors Respond To Death Of Bishop Denis Browne
The Survivors Network of those Abused by Priests (SNAP) in Oceania calls on the current bishops of Hamilton, Auckland, and Rarotonga, and all church leaders, to not follow in Bishop Browne’s negligent ways, and instead, support the abused in their dioceses ...4 hours ago
- Govt Cuts Mean Salvation Army Frontline Workers Face Axe
The change proposal covers workers in Auckland (Glenfield, Manukau, Royal Oak and Waitakere), Tauranga, Hamilton, Hutt City and Palmerston North. ...4 hours ago
- Disappointment By Court’s Decision For No Maximum Water Intake For Griffin Creek
The Court of Appeal recently ruled that the Griffin Creek hydro scheme concession, issued by DOC in 2011, contains no maximum water take. It is now possible that a bigger scheme could be built on Griffin Creek than had originally been proposed. ...4 hours ago
- Rail Cuts Set New Zealand Up For Failure
The government’s war on rail is setting New Zealand up for failure, says the Rail and Maritime Transport Union. ...4 hours ago
- GPs Should Be Lining Up Around The Block, Too
“We shouldn’t see queues like that anywhere, let alone in a supposedly developed country like New Zealand,” says Dr Buzz Burrell, interim chair of General Practitioners Aotearoa (GPA). ...4 hours ago
- IVL Increase Good For MBIE, Bad For The Economy
The Government looks to have cemented New Zealand as one of the most expensive countries in the world for a holiday today by increasing the International Visitor Conservation and Tourism Levy (IVL) to $100. ...4 hours ago
- Greenpeace Slams Govt Decision To Expand Seabed Mining Permit Area
Greenpeace says it’s "unbelievable" that wannabe seabed miner Trans-Tasman Resources has been given the go-ahead to nearly quadruple the size of the area it wants to mine in the South Taranaki Bight. ...4 hours ago
- $100 IVL Will Dent New Zealand’s Global Competitiveness
Tourism Industry Aotearoa (TIA) is very disappointed the industry’s cumulative voice hasn’t been heard, and is keen to see the government’s investment plan for the funds to be raised from the increase in the International Visitor Levy (IVL) ...4 hours ago
- Government to change law stipulating whether workers are contractors or employees
Supporters say the move will provide more clarity, but the Greens say it's the latest in "a series of assaults on workers' rights". ...5 hours ago - Education body calls for overhaul of early learning rules, ‘ineffective’ teacher to chil...
Pay parity is "the single most vexatious challenge" facing services and teacher pay should be deregulated, the Early Childhood Council says. ...11 hours ago
- PM Luxon, Police Minister Mark Mitchell say Auckland assaults are dropping
Prime Minister Christopher Luxon and Police Minister Mark Mitchell have announced a 22 percent drop in assaults in the Auckland CBD in the past year. Follow our live coverage here. ...11 hours ago
- Police Minister Mark Mitchell to speak to media
Police Minister Mark Mitchell will speak to media on Sunday afternoon at the Auckland Central Police Station. Follow our live coverage here. ...12 hours ago
- Australia can’t afford an AUKUS about-face: 5 things the critics are getting wrong
Source: The Conversation (Au and NZ) – By John Blaxland, Professor, Strategic and Defence Studies Centre, Australian National University Three years have passed since the United States, Australia and United Kingdom announced on September 15 2021 that they would enter into a security partnership called AUKUS. A major part of ...15 hours ago
- Pope Francis – a message of peace and real change in Pacific political struggles
COMMENTARY: By Laurens Ikinia in Jakarta Pope Francis has completed his historic first visit to Southeast Asian and Pacific nations. The papal apostolic visit covered Indonesia, Papua New Guinea, Singapore and Timor-Leste. This visit is furst to the region after he was elected as the leader of the Catholic Church ...15 hours ago
What we are seeing now with government expenditure is the peak boomer effect. It is directly related to the 1947-1960 rise in births. Right now it equates to slow and inexorable increases in expenditure for superannuation and medical demand over the last ~20 years. The effect will rising at an increasing rate for the next 20-25 odd years before it hits an equilibrium.
It is essentially why the tax base has effectively been shrinking. Labour just plugs the dike for a while, until National has another unsustainable tax-cut.
This was obvious to me at a 18 year old in 1978 when I was looking at the birth rate then just as it was starting to fall.
Responsible tax management would look at a previously incurred debt (essentially the idiocy of Muldoon's National Superannuation swindle) and the demographics (lots of unwell elderly) and start paying for it early.
The problem is that we really only have the Cullen Fund and a bit of ACC to plug the gap with.
Need to start measuring the current taxation against the forward expenses and build up more taxed investment so we don't get either a whacking great tax bill or a nasty political issue with the elderly saying – "but we already paid for this". Which they are entitled to do (bloody Muldoon and the Nats) but they only paid a portion of it.
All my working life I paid paye tax and interest on the mortgage (which isn't a tax but feels similar).
I haven't reached 65 so I'm still paying paye but I paid off the mortgage and have a small investment portfolio that, in better times than now) does provide small capital gains, enough that I feel their benefit.
In my head, I wouldn't like capital gains tax, but my heart says they would be the right thing to do, provided I could pay tax on NET capital gain, which is the gain left to me after any losses have offset any gains.
What I don't think is fair, though, is a wealth tax. It might seem like a good idea to box the ears of the fat cats, but I would say the majority it would impact would be people like me, who started out in life with nothing and for whom the memory of how that feels spurred me on to work long hours and challenging work environments, so I never go there again.
Also, the really rich, who I think are the people a wealth tax is targeting,would simply move their money offshore. Love them or hate them, the impact of that on our currency would hurt us all, imho.
Slap a FTT on them and make it sufficiently onerous to discourage the "John Keys" of this country from squirrelling away their surplus in tax havens!
One irony of the whole tax system is that people get taxed for working, whilst those who sit back and watch the money roll in from investments, shares and trusts pay bugger all, if any, tax.
Even children get their bank accounts taxed, thanks Roger Douglas.
And the other irony is that those who can afford to pay the most tax inevitably pay proportionally the least.
Yes, we definitely need to talk about that.
A CGT is a no brainer. other types of wealth tax may be more open to varoous arguments about their merit, but a CGT is pretty logical. a key to getting it in, some simple by lines and speaking points to negate the greedy nat/act type wealth hoarders who will moan loudly about it.
A CGT is a no brainer
True. It is advocated by those with no brains.
other types of wealth tax may be more open to varoous arguments about their merit, but a CGT is pretty logical.
A capital gain, whern it occurs, becomes a part of a person's wealth; but a tax on capital gains is too selective when other components of wealth are not being taxed. A wealth tax would also tax capital gains.
You’re not very well informed.
Income from trusts is taxed. Interest and Dividends are taxed at your marginal tax rate. Anyone or any vehicle that owns 50k worth of overseas shares gets taxed through the Foreign Investment Fund rules.
The big loophole in NZ is the major tax advantage from buying investment properties through leveraged debt with no capital gains tax.
Not when as my Aunty did had trust accounts in all our children's names – I only found out because I turned 18 and got a letter. The account was quickly closed. Saved her tens of thousands of dollars in tax over the years.
Not when our farmer neighbor just takes out loans against the appreciating capital of his trust farms. These loans are but a small proportion of his farm and other businesses capital value.
Not when my uncle puts loads of expenditure on his credit cards, pays it off at 28 days but gets loads of free money through points schemes.
Not when the man I was sitting next to on the bus skited that he had bought port shares over and above the allocated amount person by applying for shares for both his wife and four children.
Not when we live in a no risk business environment where you can owe IRD millions and close the business down and start a new one up the next day. (One tax change I favour is to have workers deductions paid to IRD on the pay day it is deducted.)
Not when debts are set up for benefit overpayments but not for stand alone assistance such as accommodation supplement. Different rules for the middle class.
Not when you can put overseas trips as a business expense on the flimsiest of business reasons e.g. investigate a new business opportunity that just happens to coincide with an All Black test.
I'm not a fan of a wealth tax never-the-less. I'd rather just bring back things like stamp duty at a decent rate – at least 10%, increase tax rates substantially over $200,000, bring in a decent universal family payment to enable families with children to have one partner not work, use that money for childcare or raise their child as a sole parent. We pay all three now but simplify it and let families decide how to use it. I can almost guarantee we would see a drop in sole parent numbers as families managed their own payment. High income earners would pay it back through the tax system as would those on NZS who decide to work as well. (The same rationale as to why benefits became taxed. By adding what was a previously non-taxable payment to your annual income you paid some of it back if you were working for part of the year.) Phase out accommodation supplement over 10 years alongside building more state housing. Property values will drop as baby boomers die off unless their is massive immigration. Stop the tax deductability for interest on housing – or allow homeowners to claim it as well without the need to set up businesses and trusts.
I'm also still a fan of turnover tax at 2% or 3% so every business in New Zealand contributes to the tax system. If every worker as to pay, so should every business – who use more of the infrastructure than workers do but contribute less. In adding this tax get rid of most of the business expenses you can claim – leave that between the shareholders and business owners to critique.
The whole system is geared around well off people making maximum incomes at present. There is no sense of fairness.
A turnover tax would be an absolute disaster, so many small businesses are currently running at break even or a loss trying to ride the reccession intact. A tax even at 2 percent of turnover would be the final nail in the coffin.
So they currently pay no tax and get a free ride and you think that is OK. I thought that it was a matter of tax law that businesses had to be run for a profit. If they can't do this should they not be shut down? Isn't survival of the fittest the rule of the market. Should they not have put money aside when times were good for when they were not? Should I as a wage worker be subsidising their non-profitable business? Don't business people keep going on about wanting a simpler tax system? Wouldn't it spread the tax burden more fairly across all businesses – many large ones currently pay no tax.
Should you even be in business?
It sounds harsh, but if you’re a business but making losses, it may be time to think of doing something else or change your business model.
https://www.beany.com/en-nz/resources/hobby-vs-business
35 countries have a turnover tax for small businesses already.
That's part of having a social licence to operate, right?
If you are reliant on:
to make a profit, then you should have no right to be in business in New Zealand
Amazing how so many small businesses admit to being a tax payer and employee funded, hobby!
Time they got a real job, along with landlords, and actually contributed to our society.
And stopped bludging off those of us that do pay taxes.
Time they got a real job, along with landlords, and actually contributed to our society.
No need for sarcasm.
Truth hurts?
Whose truth?
I prefer to stick to the facts. The fact is that landlords are generally not producing any new accommodation capacity but, rather, exploiting pre-existing acacity; so they can hardly be regarded as contributing anything.
A turnover tax also duplicates the amount of tax being paid since, if you are not getting deductions for expenses, you are effectively paying tax on your suppliers' turnover, on which those suppliers will already have paid tax.
But you have no problem with workers being taxed twice – once on their wages, the second time with GST on their expenditure.
Besides you are looking at it from an existing paradigm.
It is a simple question – should all businesses contribute to the cost of running the country and building infrastructure. In my view the answer is yes. Deduct the 1% at transaction point and pay directly to IRD on the day.
(I'm of the same view about PAYE and student loan deductions).
We've just decided tourists should pay towards the infrastructure they use. Workers do. Why should some businesses pay nothing?
But you have no problem with workers being taxed twice – once on their wages, the second time with GST on their expenditure.
Actually, I think GST should be abolished. It's regressive and, as far as I can see, it serves no useful purpose other than to allow income tax to be less steeply progressive.
should all businesses contribute to the cost of running the country and building infrastructure. In my view the answer is yes.
It doesn't need a turnover tax in order for businesses to contribute. They contribute through the payment of ordinary company tax.
“Deduct the 1% at transaction point”
But it's not just 1%. As I pointed out above, the one percentage points of all the business's previous suppliers (and their suppliers etc) get built into the selling price paid by the final customer.
PS: By the you're finished you will find that your turnover tax will be adding more than 15% to the final price. You will then be asking the government to cancel your turnover tax and bring back GST.
Nonsense. To do that you would need 15 layers from raw components to final price. That would be highly inefficient and an exceptional amount of ticket clipping along the way (and disregards the current GST regime which adds to me the consumer 15% currently).
They contribute through the payment of ordinary company tax.
Except the many that do not.
Each 1% added by all suppliers in the chain gets transfered and appears in the final selling price to the consumer. If each supplier has, say five suppliers of his own it would only take three steps to get to 15%.
You must rember that the all expenses they pay, including wages and salaries, are inluded in the final selling price.
They contribute through the payment of ordinary company tax.
Except the many that do not.
Now you you are clutching at straws. Virtally all companies contribute, when they pay company tax. The only ones that don't are those which inadvertantly make a loss – though I suspect there would more companies running at a loss if this so-called turnover tax were to be applied. At that event the government loses tax in the long run because these companies wind up their businesses if their losses persist.
Wealth tax payments can be made annually against a future estate tax liability. The longer they are paid the more likely there would be little estate tax left to pay off (we had estate tax till 1992/3 and a gift duty till 2013).
Very unlikely. The economics of super affordability is a larger working age population via migration. The estate land will offer building options …if not earlier via granny flat/small builds out of a factory.
It would take 30 years of state housing to get to that point (and National will not help – just offload funding for social housing onto others land – this is finite).
The alternative to WFF was payment to the non working partner while the children are under 5 (similar to the SPS terms). Given we chose variable support based on income, the option now is to allow non working partners to receive JSB for up to a year (when between jobs or sick and after a birth, if not working at the time). And to allow those on SPS to
1. share housing with another on a main benefit
2. be in a relationship with a non resident
3. be able to cohabit with a relationship partner for up to one year without impact on the main benefit before moving to WFF tax credits.
Our current terms result in a poor use of housing – long term loss to government.
As well as a stamp duty (over $2M) at the Oz 5% rate for this level) – back of envelope figure c$500M, a 5% tax on banks and supermarkets c$500M, there is a 1% surcharge on landlord mortgages, $900M.
Turnover tax.
https://en.wikipedia.org/wiki/Turnover_tax
No mention of how the rich can hide their income by using overseas tax haven places like the Cayman Islands.
Your everyday Joe Blow can't do that.
It would need a further proviso that no income splitting is allowed: a couple jointly earning 2 x $190,000 or $380,000 should pay the full whack.
Who the fuck earns those amounts? Currently on one income supporting a wife who is unable to work I already pay an extra $5,000 a year in tax over and above a couple earning the same amount. The average household income is $126,000 at present. I only wish I earned that much let alone 2 x $190,000 and I consider I have a good job that requires specific skills that not everyone has and continue to learn new skills.
I will have the mortgage paid off by 67 (thanks to having to do some expensive repair work) but have no real way of providing for Kiwisaver for two people. I'm less worried about myself but would like to see that $5,000 extra tax I pay at least go into Kiwisaver for her given she is likely to live longer than I despite her health issues.
I'm pretty sure that some of the DPB growth is due to the lack of support for non-working partners due to financial pressure – this was certainly seen amongst quite a few of my friends who separated during the 1987 crash – and never ever got back together. The assumption built into the system that both can work is a falsity.
Oh and lets make employers go closer to the employer contribution superannuation levels in Australia. In two years in Oz my son has more in his super fund there than in seven years in New Zealand.
Back in the day employers actually paid an allowance to married men with non-working partners til their income reached a certain level. None of us single people minded.
All my working life I paid paye tax and interest on the mortgage (which isn't a tax but feels similar).
Profit is a private tax. Any price you pay over the cost of production is a tax. Public good versus private good.
Hypothecation is one of those things that's simple and intuitive for the taxpayer in theory, but expensive and difficult for governments in practice. Yes, the money can't be spent on anything else. But the other half of the bargain is that there's no need for additional funding.
Which is very much not the case with revenue from the FED on Petrol, RUC, and road tolls, which is hypothecated and can only be spent on transport. Waka Kotahi has been pretty clear that this only makes up less than 50% of the amount they're spending on the National Land Transport Programme. They're being topped up to the tune of about $10B over the next 3 years from general taxation. And that's not even counting Simeon Brown's new Roads of National Significance.
I'd be reluctant to repeat the exercise across other critical public services.
I also think one of the biggest flaws in our taxation system is that it has the effect of directing investment away from increasing the productivity and efficiency of our businesses, or generating new jobs through creating new enterprises, and into unproductive rent seeking (e.g. landlords).
Any tax reform (and I agree it's well overdue) will need to address that gap in our capital gains regime.
There is a reason why 24 of 36 OECD nations have a CGT and an estate tax.
In the end, the doctor shortage, the teacher shortage, the police shortage, the nursing shortage, the lack of public services, they are all down to us not paying enough tax. It’s kind of simple really that if you want stuff it has to be paid for and for big, national stuff it only works if we all pay. That this government provided tax cuts when the system is in so many ways stuffed is criminal really and that they are borrowing for roads even worse.
Agree +100%
The problem, for the left, with tax as a policy solution for redistribution, is that it places the elected government at the behest of the private sector. It implies, that somehow, the state has no other financial instruments available other than economic growth solely produced by "the markets". In this picture the local private sector and external trade are the only sources of income the country has and that somehow, if we convince enough of the electorate, we might be able to increase taxes a little bit to pay for some essentials.
In this scenario government deficit – new money created by the reserve bank minus taxes – is not considered an option. Instead it is seen as something that has to be constrained and reduced as quickly as possible. This approach is demonstrated by UK Labour Chancellor Rachel Reeves and NZ's Nicola Willis, at the moderate end, to Milei in Argentina at the extreme end. All three share an identical economic view of government deficit spending and are completely focused on reducing that spending in favor of private sector growth.
The left needs to reframe the economic narrative in order to re-assert the governments positive role in the economy as a deficit spender. The repeated supplication to the right wing narrative of running the country like a business needs to be confronted head on.
Firstly with the simple observation that successful business will operate with huge deficits for decades to build up infrastructure and productivity – Amazon being the obvious example.
Secondly the purpose of government spending is to do things that the private sector does not deliver effectively – education, health, public welfare, water, electricity etc. Privatization of monopolized essential utilities has a single outcome – massive returns for the owners.
Thirdly – and most difficult to explain – a fiat currency issuing government is not dependent on the private sector and taxes or bonds to pay for public services. These are paid for by the creation of new money ‘out of thin air’ at the reserve bank.
Taxes do not pay for government expenses – the purpose of taxes is to remove money from the economy to control inflation. So we could have an interesting conversation around that problem and using varying and targeted taxes to manage inflation in a more nuanced way than we do now.
Voters need to be confronted honestly with the real economic choices – more public provision of services with more economic redistribution means less free market choice, managed slower growth and less dependence on asset prices as the only economic option.
What does an economy look like when it doesn't have the preservation of existing wealth and investment as the center of it's universe?
Some time ago, I think there was talk about a 2 cent tax on currency speculations would bring in heaps, but lately there's been nothing about it.
Was it a red herring?
Charitable donations reduction is already in place: https://www.ird.govt.nz/income-tax/income-tax-for-individuals/individual-tax-credits/tax-credits-for-donations
I know that a credit/refund of a fixed rate with a limit of taxable income is slightly different to reducing taxable income, but would it be worth the effort of changing from one to the other?
0 tax on the R and D, would be a tax credit increase from the current 15% to the company tax rate of 28%. A rough doubling.
The charity one is fixed at 33%, a change would benefit those in the tax bracket above 33 cents.
R & D I get, my question is really whether it's worth the effort on the donation tax credits given it already exists. It would also reduce the value of the donation credits for lower-income folks.
My answer is no.
I think he sees it as encouraging more voluntary charity from those of wealth as they seem motivated by "incentives" as to where there money goes.
The government paying for the extra charity funding – they can look more altruistic at no extra cost.
And if it appears the wealthy are doing more, a bi-partisan policy around not having a wealth tax can be sold to the masses.
Advocating that approach and opposing Hipkins remaining leader is a paradox.
I'll suffice with
1.there has never been a Labour-Green government.
2.the budgetary impact of a 6 month payment out of an insurance fund for unemployment (layoff or ill health) is marginal. That was not its purpose.
(the policy was deferred because of cost of living stress – mortgages/rents/rates/insurance and the fact it cannot begin while unemployment is growing).
ACC covering sickness is the more decisive measure (but that does not allow a growth in the ACC Fund size because of the cost).
3.the bi-partisan tax policy of the OECD is where 24/36 nations have a CGT and estate tax.
4.no tax on the first $10,000 is irresponsible without covering the cost.
We have a sea of budget deficits ahead on current tax policy.
5.As for the Cullen Fund continuing to grow to 2100 …
https://www.rnz.co.nz/news/business/503125/superannuation-fund-aotearoa-reaping-rewards-of-michael-cullen-s-creation-outgoing-ceo
I do appreciate the weirdness of Hipkins proposing tax policy change; whether Barbara Edmonds is up to the task of fronting such policy change is not something there's good evidence for.
There have been multiple governments in which the Greens have been a part. The formal instruments for their formation differ.
There was no suggestion that the "Worker insurance" scheme was good for the government budget. I put in the frame of extracting some of the social stigma of unemployment benefit. The proposed levy was $3.54 billion the scheme paid by 1.39% of a worker’s salary, from both the worker and the employer. A person earning $1160 a week could expect a $16.12 levy, and $928 in weekly insurance payments if made redundant. Probably only philosophical as a proposal now; can't see any other party supporting it.
I had thought that in the OECD only Denmark, Korea, UK and united States had estate taxes. Capital Gains Taxes in Europe are all over the shop in rate from 0% to 42%, and widely varied in application.
I found this paper useful on NZSuper's purpose.
https://www.treasury.govt.nz/publications/wp/wp-21-01#executive-summary
No-one except maybe the Retirement Commission wants to open policy discussions about this fund. That's a measure of taking the political noise out of a massive Crown asset that serves the population.
I agree Edmonds is respected because she is within the current mainstream parameters.
But she has the TWG support for a CGT, evidence of the low rate of tax paid by the wealthy, and thus cause to look at either a wealth tax or estate tax.
She has the Oz example of a higher income tax bracket and their stamp duty and land tax.
And until recently a progressive tax regime on companies in the USA. Another is a windfall profits tax – say 5% (28-33 cents) restricting this to large banks and the supermarkets only.
Detail as per terminology – on the estate, or on the recipients.
https://taxfoundation.org/research/all/federal/estate-and-inheritance-taxes-around-world/
Greens have been support partners of only one government, the LNZF coalition 2017-2020 (they did have a 30% of GDP spending cap agreement with Labour – which GR has moved on from, and not the only one).
NZSF projections
https://www.treasury.govt.nz/sites/default/files/2021-06/twp-21-1-fig04.gif
https://www.treasury.govt.nz/sites/default/files/2021-06/twp-21-1-fig05.gif
https://www.treasury.govt.nz/sites/default/files/2021-06/twp-21-1-fig06.gif
https://www.treasury.govt.nz/sites/default/files/2021-06/twp-21-1-fig07.gif
https://www.treasury.govt.nz/sites/default/files/2021-06/twp-21-1-fig08.gif
https://www.treasury.govt.nz/publications/wp/wp-21-01#1-why-the-contribution-rate-keeps-rising
Just wanted to thank everyone for the quality of the responses.
I sure ain't no tax expert, so it's great to hear from people on it.
Labour has the option of listening to Bollard a former RBG who sought the option of a mortgage surcharge rather than a OCR rate rise
$350B of house mortgage loans – 1% is $3.5B pa.
https://www.rbnz.govt.nz/statistics/series/lending-and-monetary/registered-banks-and-non-bank-lending-institutions-sector-lending
The amount of revenue would afford a zero tax threshold up to $10,000.
An alternative is to to exempt everyone from the 1% surcharge, except those not resident in the property (unless it is a new build).
An incentive to direct investment into new builds.
$90B – $900Mpa.
The result- the plan will fail. Spectacularly. [deleted]
[Making unsubstantiated claims is a characteristic trait of trolls. Lift your game and address anything specific in the OP with some substance instead of hot air emanating from your brain farts – Incognito]
Mod note