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Tax reform for everyone, not just the rich

Written By: - Date published: 7:26 am, November 27th, 2009 - 41 comments
Categories: tax - Tags:

Why is it that whenever you see discussion of introducing capital gains tax, land tax etc, the assumption is always that the money will be used to cut the top tax rates?

That seems completely misguided to me. Why should tax reform be all about taking tax burden off those most able to bear it? Taxes to disincentivise housing as an investment won’t only be borne by housing investors. In fact, the Tax Working Group says the effect of closing the tax breaks for housing will be regressive (ie take a higher portion of the incomes of people on low incomes than those on high incomes) because there will be pass-on to rents. So, if the new taxes, as desirable as they are, will be felt by a broad section of the population, why should the counteracting tax cuts only go to the wealthy elite?

Now, a lot of you out there will be saying ‘I earn over $70,000 and I’m not rich’. Two points:

1) relatively, you are. 91% of New Zealanders earn less than $70,000. The median income in New Zealand is $28,000, which means half of New Zealanders get by on less than that. The median wage is $41,000 and the median full-time wage is $45,000. So, yeah $70,000 is a bit. (see NZ Income Survey)

2) Sure, if you’re on $75,000 or $80,000 you get a little bit from a cut to the top tax rate but a 1% reduction in the top tax rate only gives you a dollar a week per $5,000 over $70,000 you earn. And consider: on $80,000 you get a whole $2 a week. But if you’re Rob Fyfe on $3.1 million you get $600 a week. Top bracket tax cuts aren’t only unfair to everyone earning below $70,000, they’re unfair to nearly everyone earning above $70,000 too.

Serious consideration should be given using the revenue from new property-based taxes to pay for a tax-free income tax bracket. OK, let’s say the combination of new taxes brings in $2 billion a year. If that money is used to cut the upper tax rates the top tax rates could be cut to 26% but three out of four people would get nothing, most of the rest get less than $20 a week, and 1.5% of taxpayers make off with tax cuts averaging $178 a week.

(in the graphs, one worker=100,000 taxpayers, each stack represents an income bracket $10,000 wide, the last two are $100K to $150K and $150K + the blue is the weekly tax cut)

tax cuts for the rich

A tax-free bracket up to about $5,300 would cost the same amount and would give everyone $13 a week.

fair tax cut

Now, which sounds fair to you?

41 comments on “Tax reform for everyone, not just the rich”

  1. tsmithfield 1

    Its because we need to be creating an environment that encourages people to move ahead and improve their circumstances.

    An example of the effect of reversing the tax reduction schedule as you propose can be seen in one of my workers. He refuses to work overtime because it will reduce his level of family support, and so the extra income from overtime is no value to him.

    This is the effect of increasing taxes as people move up in the income bracket. It serves as a damper on the economy and in the end is bad for everyone including the low income workers.

    • Marty G 1.1

      “Its because we need to be creating an environment that encourages people to move ahead and improve their circumstances.” see: http://www.thestandard.org.nz/the-myth-of-upward-mobility/

      the richest countries in the world have higher top tax rates than we do – norway, sweden, uk, france, australia etc

      maybe you should hire another worker rather than expect people to work overtime.

      It is true that because people now get Working for Families and that abates as income rises it creates a higher marginal tax rate.

      If your worker has a enough kids, then his marginal earnings could be in the 38% bracket, and with Working for Families abating at 20 cents in the dollar that’s an effective marginal tax rate of 58 cents in the dollar.

      But what’s the alternative? get rid of WfF? Don’t think he would like that. Abate at a slower rate? Then richer people would get it and i remember the fuss the right kicked up over that.

      • Lanthanide 1.1.1

        The guy from the tax working group on 9 to noon yesterday morning acknowledged that Oz has a higher rate – 45%, but that it kicks it at a much higher income threshold, $180,000. The effect of this is that while we have a lower headline rate, 38%, people that are on that rate still pay a lot more tax on average than those overseas. He said you’d have to earn $200,000 before you start to pay less tax in NZ as a result of our lower headline rate than Oz – that means that up until $200k you pay more tax in NZ.

        So yes, we may have a lower *headline* rate, but the *effective* rate is higher than the rest of the world, and that is the issue that they are talking about.

    • prism 1.2

      Tsmithfield’s worker is making a good economic decision for his own circumstances. The trouble about many of our tax regimes is that they are too clear cut at the edges ie earn a bit more and you get hoisted into another tax bracket. Not indexing for inflation exacerbates this.
      Earn a bit over the allowed earnings for a beneficiary and you lose your allowances, and end up with less than your previous income which will not be the high rate sensationally trumpeted in the media. I haven’t seen an example of how such a high income can be allocated.
      The secondary tax system is another government tax rort based on the idea that a second job is a luxury as the first, main job pays enough to live on.
      Our tax system has been designed for simplicity and ease of accounting – the idea of a rational system and fair taxes that don’t discourage workers to earn more doesn’t come into it.

      • Marty G 1.2.1

        agree that the abatement rate for benefits sucks – 70%!

        Add in 12.5% or 21% tax and people trying to come off the benefit face marginal tax rates of up to 91%. It makes it every unappealing to go from the benefit to part-time work. You’re basically giving up a lot of time for bugger all extra cash.

        Tricky though. Lower the abatement rate and you’ll have people earning thousands of dollars a year from work while getting the unemployment benefit. And you can imagine the Right’s response to that.

        • TightyRighty 1.2.1.1

          who would work because it’s the right thing to do, rather than just sucking from the taxpayers tit. all the bullshit that pours of this site about how much people who are unemployed would love to work, and then this bullshit comes out about how people need to make rational economic choices. benefits need to be taken away if people think it’s more economic to stay on them. because benefits are for people who deserve them, not sponges.

          • JonL 1.2.1.1.1

            When you;re earning SFA to start with, every dollar counts! Would you work, knowing that tax is taking 40mins of every hours wages?

      • felix 1.2.2

        Agree with prism (and Marty) on benefit abatement rates.

        Also on the secondary tax system – I’ve never understood how this is supposed to make sense. It seems like a relic from a bygone era.

        • Draco T Bastard 1.2.2.1

          Most of our tax system is a relic of a bygone era – the era when we didn’t have computers and high speed data connections.

    • jcuknz 1.3

      This letter tsmithfield illustrates the mad pre-occupation with getting ahead monetarywise instead of living a good and full life which used to be the New Zealand ethic as opposed to the crazy dog eat dog world of America. On the otherhand I thought fellow workers who refused overtime ‘because of the extra tax paid’ as rather stupidly self centred as it is the responsibility of those who have it to pay it for the benefit of all … worker or employer. Much of my working life I paid above average tax and never regretted it … my contribution to a responsible society.

    • roger nome 1.4

      It’s because we need to create an environment that encourages correct grammar, and critical faculties, that allow us to see trough neo-liberal dogma (i.e. that people are only motivated by cash.

      You embody the failure of the National’s and Labour’s 1990s-present policies. Time to move on.

  2. Ron 2

    So your worker won’t work overtime? If they had decided this because it interefered with their church repsonisbilities? If the they decided not to because they preferred to spend time with their family? If they had a doisbal;ed family member who required their time? If they decided not to take overtime because they’re happy with their income and don’t want the extra work?

    It’s a workers right to work overtime or not and it should be no concern of yours what those reasons are.

    • gitmo 2.1

      Ummmmm I think the point being made is that in this particular case there is a perverse incentive for this person not to increase their gross income as it will decrease their net income…….I hope you can see that situation is non-sensical

      • Marty G 2.1.1

        oh dear gitmo.

        There is no way for tax to turn an increase in gross income into a lower net income. You’re talking about a marginal tax rate over 100%. It doesn’t exist.

        The highest you can get in NZ is an income over $70,000 with Working for Families, which gives a marginal tax rate of 58% – 38% tax, 20% abatement of WFF.

        You realise that when your income enters a higher tax bracket it is only the earnings in that bracket that are taxed at the higher rate, eh? Everything else is taxed at the lower rates.

        captcha: invalid

        • gitmo 2.1.1.1

          That’s odd I had one staff member with the same issue who was convinced that if we gave her the increase we were proposing it led to a decrease in her WFF and a decrease in her net income…. perhaps we calculated it incorrectly ?

          • Marty G 2.1.1.1.1

            there aren’t 100%+ marginal tax rates. Not since Muldoon’s day. No-one would accept a payrise that pushed them over the boundary if there was.

        • Lanthanide 2.1.1.2

          Also throw in the 10% student loan payments, as someone earning over $70k is likely to have. Obviously it’s not really a ‘tax’, but it does come out of your take home pay.

          • snoozer 2.1.1.2.1

            if you’re on a benefit, that could potentially make your marginal tax rate 101%. But for people on over $70K and getting Working for Families and with a student loan to pay (not a huge group, of course) it’s 68%

            • felix 2.1.1.2.1.1

              Do people on benefits have to make student loan repayments?

            • snoozer 2.1.1.2.1.2

              if they earn over the repayment threshold. Say you were earning for half a year and now you’re on the dole, if it takes your annual earnings over 16K or whatver the threshold is, you need to pay 10 cents in the dollar above that threshold

      • Ron 2.1.2

        Can’t see anything non-sensical aboout it. The comment was trying to draw a connection between levels of taxation and/or government support and the willingness of his/her workers to work overtime. It’s irrelevant. A worker has a right to decide for themselves whether they want to work overtime. Their reasons for this are none of the employer’s business.
        The fact that this worker is sensibly supported through WfF is a good thing for our sociaety and if they choose not to work overtime because they value that support – again – none of the employer’s business.
        You could just as easily aruge that we should pay people less as an incentive to do overtime? In fact that is what is being argued.

  3. tsmithfield 3

    The situation with our business is that we have customers who can only have work done after hours. So overtime is unavoidable. The stated reason my worker doesn’t want to do overtime is abatement of family support, no other reason.

    Marty, how do you think your upward mobility study would look in a hypothetical situation where the tax percentages were reversed, so that low income workers paid tax at the highest rate?

    The problem at the moment is that the so called wealthy are paying highest tax rates in terms of both amount and percentage. Furthermore they don’t get any of the benefits from the state (family support, community services card etc). Therefore they are disincentivised in more ways than one. These people also often are in a position to take there money and go to another country that treats them more fairly if they so wish if they feel like they are getting too screwed over. So, be careful what you wish for.

    • Marty G 3.1

      how am I meant to create a fantasy world where the poor are taxed more than the rich?

      That’s actually nutty. You’re saying let’s take the people with the least, the people on the edge and take more of what little they have so that people like you and I can have more cash for funding our comfortable lifestyles.

      All that would happen is the poor would be poorer and the rich richer. It’s not going to suddenly make everyone rich. That train of thought assumes that people want to be poor.

    • Ron 3.2

      “The situation with our business is that we have customers who can only have work done after hours. So overtime is unavoidable.” OR – you structure your business to cater to your clients.

      • felix 3.2.1

        Nah, it’s totally the worker’s problem.

        • prism 3.2.1.1

          Hey, that doesn’t address the reality of after main business hours needs of customers. Then there are roads or railways where work may have to be done when traffic is light. Wellington people may like to give a big thank you to the people working over the Christmas holidays updating parts of the rail system there.

          • snoozer 3.2.1.1.1

            employing people to work outside normal business hours isn’t the same as expecting them to work overtime.

    • Bored 3.3

      Hi ts, I too run a company that has regular overtime required at all hours 24*7. To enable us to do this I accept the need to pay penal rates that exceed any displaced income elsewhere (i.e. extra income eats into family entitlements etc). This I pass on to the customer (a luxury a lot of companies dont have I admit), but at least this gives some incentive.

      The above scenario I dont blame on the tax system per se, it is more a result of my efforts to maximise my profit which is generated by the work put in by the employees. The issue is systemic, if I pay more I become both less profitable and less competitve price wise and we are all out of work. If I dont pay enough the work doesnt get done.

      I dont complain about the tax system the employees work within, any business person worth their salt knows any number of ways to structure the rest of the business to take advantage of where the taxman meets the ledger. We have the luxury PAYE people dont of choosing what Caesars cut comes from at the best rate. That is where tax reform needs to be concentrated, not on the least able to take advantage.

    • jcuknz 3.4

      >>>The situation with our business is that we have customers who can only have work done after hours<<<
      Surerly this is a situation where you employ people to work those hours and to have time off during the 'working day'. A good proportion of my working life I was employed that way with 10-7 and 5-midnight shifts becuase that was when the work was. No overtime was required apart from covering other staff sickness etc.

      It also seems wrong that we have so many beneficiaries in the country with punitive abatement levels which mean such small reward for extra work. A further problem is that cutting taxes for 'the workers' is so expensive for government and so unrewarding for the worker….. or is that a fallacy?

  4. vidiot 4

    So in Martys terms, a single income family earning $80K per annum is rich, yet a dual income family earning 2 median full-time wage of $45,000 ($90K) is not ?

    You call it working for families, yet it actively discourages having a single income family ? And instead encourages both parents to go back to work. Like that’s really going to help your family unit… here strangers look after my kids, I need to earn a buck to stay afloat.

    • Marty G 4.1

      it doesn’t discourage single income families. It is the family income, not yours alone that is taken into account.

      Obviously personal circumstances change your wealth. If you are single on $50K with no kids, you’re sitting pretty easy. $70K between two of you with two kids is not so easy.

      • vidiot 4.1.1

        It does discourage single income families.

        Q) How much tax does a single income family pay on 80K of income ?
        A) $21,309.60

        Q) How much tax does a dual income family on 80K (2 x 40k) pay ?
        A) $15,778.80

        The difference – $5,530.80 – about $106.00 per week and that’s before any WFF payments are taken in to account.

        • snoozer 4.1.1.1

          vidiot. The issue you’re talking about there is income splitting, not Working for Families.

          Working for Families doesn’t discourage single earner families. Income splitting arguably would encourage single earner familes.. but implicit in your example is the assumption that, if only the tax system would encourage them to do it, the couple would stop earning 40K each and one of them would be able to magically increase (his) income to 80K. And that’s just fantasyland stuff

          Income splitting would probably be mostly used for rorting by business owners.

          • vidiot 4.1.1.1.1

            An easy fix would be to allow income splitting, but that income splitting stops either the moment the registered 2nd adult starts full-time work or the youngest child turns 18.

        • prism 4.1.1.2

          The Wffamilies is seen by some as a welfare handout not a rebalancing of an unfair rigid tax system which recognises the extra cost burdens that parents bear. Every now and then there are disparaging comments about it. It would be far better to have the old adjustable tax system where the family pay a set rate of tax according to the numbers of children – say 1-2, 3-4 5 and over. More work for administration? That’s what computers are meant to help with isn’t it! Then no handbacks to allow people just to manage.

          There is plenty of evidence in NZ of a growing number of working poor on low incomes who can hardly manage to pay the bills and don’t have much money left over for pleasure let alone emergencies. And they often have shit jobs with shit bosses and shit hours as well. Happy days in the bright NZ economy ushered in by Rodger and his band of elves.

          And all the time the rainbow vision dangled in front of us – parity with higher Australian incomes. At what pay level exactly are we talking about here. Those at the high end who think that $80,000 pa isn’t being rich. Some people are born moaners, they won’t be satisfied till they pay the same tax as someone on $30,000 and consider that is a fair and reasonable way to draw a country’s needed revenues.

          Sort of communistic isn’t it when you look at flat taxes – funny how right-wingers can twist and turn when there is advantage to them.

  5. Herodotus 5

    The tax system views earners as individuals the welfare/state looks at the family situation re income. One system does not dove tail into the other. So there are cases where the “rich” families who earn less than those that the state determines requires additional assisatnce.
    Under the tax system single income families are disadvantaged, so you conclude that labour & Nats do not value families esp parents who stay at home.
    I will coninue one of my pet questions that NO ONE will answer – What is a Livable wage. Then once this is ascertained then how does the tax system/ with welfare assist those under this level to live in a meaningful way ? But this question just solicites emptyness. If Labour cannot answer or is unwilling to perhaps that is why no one will vote for them.

    • Bored 5.1

      I remember the cheers from single people with no kids when the tax brackets were removed making all incomes taxed much the same way. In the 70s I recall you got taxed more if you were single or as a secondary income earner in a family. The tax got less the more kids you had.

      I suspect some of the results of this change include the need for family income support, surplus expenditure by childless people on consumer products, inability of poorer families to provide good parenting etc etc.

      Capcha “Senior”…I was a kid in the 70s

  6. ben 6

    Marty: again you miss the obvious. The stated goal is to shift tax from mobile factors to immobile factors. If you tax things that move then they may go to low tax jurisdictions. If you tax things that are immobile then you reduce DWL for any given amount of ta raised. Not a hard concept, not necessarily incompatible with your progressive ideal, and a well publicised one. Somehow, something you have missed.

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    4 days ago
  • A new Ministry of Works
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    No Right TurnBy Idiot/Savant
    4 days ago
  • Capture: Well spaced out
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    4 days ago
  • Life in Lock Down: Day 6
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    5 days ago
  • Why those bubbles are so important
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    5 days ago
  • A Government System That Works
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    5 days ago
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    5 days ago
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    5 days ago
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    5 days ago
  • Time for Grant Robertson to reveal package #2?
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    5 days ago
  • Saving lives
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    No Right TurnBy Idiot/Savant
    5 days ago
  • Life in Lock Down: Day 5
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    6 days ago
  • Speaker: Les Gray: the man who told the truth
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    6 days ago
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    6 days ago
  • Time for a living wage for supermarket workers
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    6 days ago
  • Hard News: MUSIC: Lockdown Grooves
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    6 days ago
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  • Life in Lock Down: Day 4
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  • Rāhui day 4
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  • Life in Lock Down: Day 3
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  • Rāhui day 3
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  • A test of civil society.
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  • How Do You Feel? What Do You Think?
    Fortune's Children: Under extraordinary pressure, the leader of the Government and the leader of the Opposition will each show us what they are made of. Have they been blessed with intelligence, grace, wit, poise, toughness, empathy and humour – and in what measure? More importantly, to what extent have they ...
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  • Landlords are NOT an essential service
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  • A “new Society” post-COVID19 will definitely emerge. The question is: on what path?
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  • Raise the Bar: Everything you need to know about the wage subsidy
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    1 week ago
  • The massacre of prisoners in Modelo jail, Bogota, March 21
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    1 week ago
  • We are not America
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    No Right TurnBy Idiot/Savant
    1 week ago
  • When will we know the lockdown is working?
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  • A Compelling Recollection.
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    1 week ago
  • Aggressive action to address climate change could save the world $145 trillion
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  • After the Pandemic
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    SciBlogsBy Robert Hickson
    1 week ago

  • Further measures to support businesses
    The Government will be introducing legislation to make changes to the Companies Act to help companies facing insolvency due to COVID-19 to remain viable and keep New Zealanders in jobs. The temporary changes include: Giving directors of companies facing significant liquidity problems because of COVID-19 a ‘safe harbour’ from insolvency ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Govt’s COVID plan, economic strength recognised
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Funding certainty for sports through COVID-19
    National sports organisations have been given certainty of funding to ensure they can remain viable through the COVID-19 pandemic, Sport and Recreation Minister Grant Robertson announced today. “The global spread of COVID-19 has had a significant impact on sport and recreation in New Zealand, including the cancellation or postponement of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Butchers now allowed to process pork
    Changes have been made to allow butchers to process pork, only for supply to supermarkets or other processors or retailers that are open, Agriculture Minister Damien O’Connor has announced. “We carefully weighed the risk of allowing butchers to open their shops for retail customers, but the risk of spreading COVID-19 ...
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    3 days ago
  • Essential workers leave scheme established
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    3 days ago
  • Govt WhatsApp helps share COVID-19 information
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    3 days ago
  • Managed departure plan for stranded foreign nationals enables safe, orderly exit
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    3 days ago
  • Government delivers COVID-19 support to GPs and Pharmacies
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    3 days ago
  • Susan Thomas the new Chief High Court Judge
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    4 days ago
  • Business Finance Guarantee – applications open
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    4 days ago
  • Work starts on ways to fast-track consents to boost recovery from Covid-19 downturn
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    4 days ago
  • Advance payments to support contractors
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    5 days ago
  • Government seeks infrastructure projects
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    5 days ago
  • Health system scaled up to prepare for COVID-19
    Work to scale up the health system in preparation for COVID-19 was today outlined by Health Minister David Clark, as he reported back to the new Epidemic Response Committee. “We are well placed to contain the spread of COVID-19. We have taken early and decisive action at our borders, and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Essential media COVID-19 guidelines refined
    The Government is refining its COVID-19 essential business guidance to include the distribution of news publications for communities which are hard to reach. The Minister of Broadcasting, Communications and Digital Media, Kris Faafoi, said the move was in recognition of the importance for New Zealanders who might be harder to ...
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    5 days ago
  • Supermarkets able to open on Easter Sunday
    The Government is ensuring supermarkets can open on Easter Sunday so we can buy groceries, but stay closed on Good Friday allowing workers to take a break. This provides a balanced approach and ensures we avoid large queues that two days closure may cause. “Supermarkets will be able to open ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand defence personnel conclude mission at Taji
    Following the successful conclusion of the Building Partner Capacity (BPC) mission at Taji, New Zealand defence personnel are returning to New Zealand from Iraq, in accordance with the Cabinet decision made in June 2019, Foreign Affairs Minister Winston Peters and Defence Minister Ron Mark announced today. “New Zealand is very ...
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    5 days ago
  • State of National Emergency extended
    The State of National Emergency to help stop the spread of COVID-19 has been extended for a further seven days, Minister of Civil Defence Peeni Henare said. The initial declaration on March 25 lasted seven days and can be extended as many times as necessary. “Since we went into isolation ...
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    5 days ago
  • Strong Govt books support ‘go hard, go early’ response
    New Zealand’s ability to go hard and go early in the fight against COVID-19 has been underpinned by strong Government finances and the growing economy heading into this global pandemic, Finance Minister Grant Robertson says. The Treasury today released the Crown financial statements for the eight months to the end ...
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    6 days ago
  • Christchurch Hospital Hagley ICU to open to support COVID-19 response
    Health Minister Dr David Clark says 36 new intensive care beds at Christchurch Hospital’s new Hagley building are being fast tracked so they are available for treatment of COVID-19 patients.   The Ministry of Health is working with contractor CPB and Canterbury DHB to enable access to the hospital’s ICU, ...
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    6 days ago
  • Government supports Air NZ freight flights
    The Government has fast-tracked up to $1 million to help Air New Zealand move urgent freight to and from New Zealand, with the first flight to Shanghai leaving tonight, Transport Minister Phil Twyford announced today. Phil Twyford says it’s crucial that trade in vital goods such as medical supplies and ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Tariff concessions on COVID-19 related products
    New Zealand will temporarily remove tariffs on all medical and hygiene imports needed for the COVID-19 response. Trade and Export Growth Minister David Parker and Commerce and Consumer Affairs Minister Kris Faafoi said today that the New Zealand Customs Service will apply tariff concessions to all diagnostic reagents and testing ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Clarification of modification to wage subsidy scheme
    Minister of Finance Grant Robertson has clarified that the changes to the wage subsidy scheme announced yesterday mean that employers should be passing on the full subsidy to workers, except in the case where the person’s normal income is less than the level of the subsidy. “We still want employers ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Face masks flowing to DHBs
    Medical face masks from the national reserve supply are now being distributed to District Health Boards, while at the same time local production is being ramped up. Yesterday more than 640,000 masks were sent to DHBS – that is an immediate two week supply, with more to follow in coming ...
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    1 week ago
  • COVID-19: Further steps to protect New Zealanders’ jobs
    The Government has made modifications to the wage subsidy scheme to ensure people don’t lose their jobs during the national lockdown. These changes will soften the impact of COVID-19 on workers, families and businesses, and position them to exit the lockdown and look to recovery, Finance Minister Grant Robertson says. ...
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    1 week ago
  • Tax relief for Mycoplasma Bovis farmers
    Farmers whose herds were culled in response to the outbreak of Mycoplasma bovis will be able to minimise the tax treatment of their income in some circumstances. Revenue Minister Stuart Nash says Cabinet has agreed to change the law. It means farmers may be eligible to spread their income over ...
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    1 week ago
  • $27 million for NGOs and community groups to continue providing essential services
    A $27 million dollar package, effective immediately, is being provided to social sector services and community groups to ensure they can continue to provide essential support to communities as we stay at home as a nation to stop the spread of COVID-19, Minister for Social Development Carmel Sepuloni announced. “At ...
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    1 week ago
  • Statement on guilty plea of March 15 terrorist
    “The guilty plea today will provide some relief to the many people whose lives were shattered by what happened on March 15,” Prime Minister Jacinda Ardern said. “These guilty pleas and conviction bring accountability for what happened and also save the families who lost loved ones, those who were injured, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • COVID-19 updates
    The Prime Minister is holding daily press conferences to update New Zealanders on the Government's response to COVID-19. Links to videos and transcripts of these updates below. These transcripts also include All of Government press conferences led by Director Ministry of Health's Director-General of Health Dr Ashley Bloomfield. 25 March: Live update from the Prime ...
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    1 week ago
  • Police numbers break through 10,000 mark
    Frontline Police numbers have broken through the 10,000 mark for the first time in history as officers step forward to keep the community safe during the COVID19 lockdown. “Two Police graduations in Auckland and Wellington in the past week have been conducted in unprecedented circumstances,” Police Minister Stuart Nash said. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Urgent tax measures for economic recovery
    Urgent legislation has been passed to support the package of economic and social measures needed to recover from the impact of the coronavirus outbreak. “The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill will cushion New Zealanders from the worst economic impacts of the COVID-19 outbreak,” said Revenue Minister ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Further support for farmers and growers as drought persists
    From tomorrow, Government support for farmers and growers affected by drought will be expanded and extended across the country, with access to Rural Assistance Payments (RAPS) available throughout the North Island, parts of the South Island and the Chatham Islands, Social Development Minister Carmel Sepuloni announced. “These challenging conditions have ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • COVID-19: Temporary changes to Education Act
    Parliament has passed amendments to legislation that give the Secretary of Education stronger powers to act in the fight to limit the spread of COVID-19, Education Minister Chris Hipkins said today. “They are part of a suite of changes passed under the COVID-19 Response (Urgent Management Measures) Legislation Bill,” Chris ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Canada, Australia, Chile, Brunei and Myanmar join NZ and Singapore in committing to keeping supply a...
    Canada, Australia, Chile, Brunei and Myanmar have joined forces with New Zealand and Singapore by committing to keep supply chains open and remove any existing trade restrictive measures on essential goods, especially medical supplies, in the face of the Covid-19 crisis.  Trade and Export Growth Minister David Parker today welcomed ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • COVID-19: Rent increase freeze and more protection for tenants
    Immediate freeze on rent increases Tenancies will not be terminated during the lock-down period, unless the parties agree, or in limited circumstances Tenants who had previously given notice can stay in their if they need to stay in the tenancy during the lock-down period Tenants will still be able to ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Working together to protect businesses and workers
    As New Zealand unites to lock-down in the fight against COVID-19, the Finance Minister is urging all businesses and workers to stay connected over the next four weeks. “We understand the extreme pressure many businesses are under right now. I know most business owners think of their workers as family ...
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    2 weeks ago
  • State of National Emergency declared to fight COVID-19
    A State of National Emergency has been declared across the country as the Government pulls out all the stops to curtail the spread of COVID-19. “Today we put in place our country’s second ever State of National Emergency as we fight a global pandemic, save New Zealanders’ lives and prevent ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Prime Minister’s statement on State of National Emergency and Epidemic Notice
    Mr Speaker I wish to make a Ministerial Statement under Standing Order 347 in relation to the recent declaration of a State of National Emergency. Having considered the advice of the Director Civil Defence Emergency Management, the Minister of Civil Defence declared a State of National Emergency for the whole of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Deadline for domestic travel extended
    People needing to travel on domestic flights, trains and Cook Strait ferries to get home before the country moves into level 4 lock-down tomorrow night will be able to continue using the passenger services until midnight on Friday, Transport Minister Phil Twyford said today. Domestic passenger services, particularly ferries, have ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Mortgage holiday and business finance support schemes to cushion COVID impacts
    The Government, retail banks and the Reserve Bank are today announcing a major financial support package for home owners and businesses affected by the economic impacts of COVID-19. The package will include a six month principal and interest payment holiday for mortgage holders and SME customers whose incomes have been ...
    BeehiveBy beehive.govt.nz
    2 weeks ago