Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Govt’s latest tax grab will boost living costs again


Amy Adams - Finance

10 December 2018

Two weeks out from Christmas, the Labour-led Government has unveiled plans to extract more taxes from New Zealanders that will drive up the cost of living for the very families that can least afford it, National’s Finance spokesperson Amy Adams says.

“Legislation introducing ring-fencing of rental losses will change New Zealand’s tax settings so that residential property is treated differently to every other form of investment. Those that will feel it most will be the one third of Kiwi households who rent.

“The Government is expected to haul in an extra $190 million a year in tax from landlords but the Treasury, IRD and property investors all say, it is tenants who are likely to suffer. Higher taxes will be directly passed on to tenants via higher rents and indirectly by deterring investment in rental properties and reducing supply.

“To put that in perspective, if all of the $190 million extra tax is passed on to the 630,000 New Zealand households that rent, then rents will rise by another $300 a year. Yet again this Government’s poorly conceived policies are hurting families who are already being forced to stretch each dollar further.

“In the first 12 months of this Government, the median rent in New Zealand rose by $30 a week. That is 2.5 times faster than under National and is a direct consequence of the higher taxes and costly regulations being imposed on landlords.

“Ring-fencing of losses is just the latest tax grab from a Government that, as this legislation confirms, has cancelled tax cuts planned by National, only to embark on wasteful spending schemes.

The typical New Zealander will pay an extra $1,060 in tax every year just from the cancellation of the tax cuts legislated by National and before counting the impact of petrol taxes, increased rents and electricity prices that are set to rise.

“This Government is far from family friendly. Analysis by the Treasury shows that three out of four families would be better off under the Family Incomes package National introduced last year than under this Government’s Families’ package.

“National believes New Zealand families deserve to keep more of what they earn. This legislation does the opposite of that, confirming there will be no tax cuts and imposing new taxes that will only add to rising living costs.”

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

The Gili Islands: A Community Earthquake Recovery Effort

Joseph Cederwall travelled to the Gili Islands in October 2018 to talk to locals about their experiences of the event and witness the impact and the rebuild efforts on this unique ecotourism destination.

2018 was a difficult year for the Indonesian archipelago. This chain of fragile and largely low-lying islands is situated on a particularly unstable segment of the Pacific rim of fire. Last year the islands were hit by a series of devastating natural events including a series of Lombok, Sulawesi and Java based earthquakes and resultant tsunamis.More>>

 
 

DHBs "Prepared": Junior Doctors Strike Tuesday, Wednesday

The needs of acute patients will be met during tomorrow's junior doctor strike, a DHB spokesperson says... Almost 3000 junior doctors are expected to walk off the job, which will affect all DHBs apart from West Coast District Health Board. More>>

ALSO:

Gordon Campbell: On MBIE’s Social Media Scam

Given the ambit of MBIE’s work, almost any form of social activity could qualify as being part of MBIE’s brief, so the privacy threats posed by this training programme are extensive. The current oversight safeguards seem threadbare to non-existent. More>>

ALSO:

JusTrade: New Campaign For A 21th Century Trade Agenda

‘Critique is no longer enough. If anything is to really change, we need to step away from the existing framework and take a first-principles approach to rethinking what will work for the 21st century.’ More>>

Earlier:

Gordon Campbell: Thompson + Clark Are The Tip Of The Iceberg

How can we tell where and how any lines are being drawn? Oversight is not exactly robust. If it were, Thompson + Clark would have been out of contention for state security work ten years ago. More>>

Trainers: Taratahi Institute of Agriculture In Interim Liquidation

Taratahi employ 250 staff and this year has provided education to over 2500 students. Taratahi owns and manages 8 farms throughout the country. More>>

ALSO:

IPCA Report: Complaints About Deputy Commissioner Wallace Haumaha

The Authority has found that DC Haumaha acted improperly by approaching staff and others to provide information to support him to refute the allegations about his 2016 conduct, or solicited other staff to do so on his behalf... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels