Gone By Lunchtime x When The Facts Change: A Budget special
In the year of growth, Nicola Willis has presented a growth budget. But does the Investment Boost initiative, which speeds up depreciation for businesses, promise the kind of growth that the economy needs? In this special Spinoff pod for budget day, Toby Manhire asks Bernard Hickey for his take on the headline changes, and whether or not David Seymour's earlier commentary that his colleague Brooke van Velden had 'saved the budget' through its controversial and hurried changes to the pay equiry scheme, has been proven true.
Plus: what are the cumulative impacts of the changes to KiwiSaver and Best Start, as compared to the SuperGold cohort? And how much did the global political and economic volatility influence the documents published today?
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The Spinoff
2 hours ago
- The Spinoff
The cost of being: A manager who ‘hates paying full price and always wants a deal'
As part of our series exploring how New Zealanders live and our relationship with money, a senior manager explains where their money goes. Want to be part of The Cost of Being? Fill out the questionnaire here. Gender: Female. Age: 45. Ethnicity: Kiwi and Pasifika. Role: Full time senior manager, with hubby and two kids (preschooler and primary). Salary/income/assets: Earn $200,000. Own our home and investment property. $200,000 in KiwiSaver. $500,000 life insurance. My living location is: Suburban. Rent/mortgage per week: $750 per week, shared with hubby. We are paying about $350 a fortnight more then the minimum payment, to pay it off faster and reduce the interest. Student loan or other debt payments per week: Paid off my $65,000 student loan. Pay the credit card in full every month. Only debt is mortgages. Rental mortgage is $2,000 per fortnight, rent doesn't cover it, so we top up $1,000 every fortnight. Didn't realise we were buying at the top of the market! Repayments are interest only, but saving so we can make a lump sum payment when our five year term ends. Typical weekly food costs Groceries: $450 for two adults and two kids. Eating out: Rare. We are homebodies. Takeaways: Up to $400 on UberEats. Some weeks only $100, others closer to $300. It's not cheap but we have stressful lives and it makes our evenings easier. I cook for the kids and we eat takeout. Workday lunches: Try not to eat out, will take leftovers or make a sandwich. Cafe coffees/snacks: $20 for coffee. Necessity to function. Savings: $1,000 per fortnight. But we dip into it for big bills/rates etc. I worry about money: Rarely. Three words to describe my financial situation: Comfortable, fortunate, secure. My biggest edible indulgence would be: Extra virgin olive oil from New Zealand – around $30 a bottle. In a typical week my alcohol expenditure would be: Zero. Our partying days are behind us! In a typical week my transport expenditure would be: $80 petrol I think. Hubby fills the cars up so not really sure. Have a fuel efficient SUV. I estimate in the past year the ballpark amount I spent on my personal clothing (including sleepwear and underwear) was: $400 – mostly for work clothes and I buy my fave brands from Trade Me. Saves me a fortune and not contributing to fast fashion, better for the planet. My most expensive clothing in the past year was: $50 for a pair of jeans. I am the queen of deals and bargains. My last pair of shoes cost: $40 pair of Lightfeet jandals. Like walking in a cloud, great arch support. Live in them year round. My grooming/beauty expenditure in a year is about: $3,500. Sheesh that is a sobering number, haven't added it up before. But my job requires me to be well groomed and I can afford it. Beautician is $200 six weekly ($1,600 pa). Hairdresser is $215 six weekly ($1,690 pa). $200 for makeup. My exercise expenditure in a year is about: Nil. Walking at beaches/parks etc. My last Friday night cost: Nothing. Chilled at home. Most regrettable purchase in the last 12 months was: $25 for a jacket that I bought on Trade Me which looks horrible on me. What was I thinking?! Most indulgent purchase (that I don't regret) in the last 12 months was: $100 for a body massage. One area where I'm a bit of a tightwad is: Everything. I hate paying full price and always want a deal. Five words to describe my financial personality would be: Relaxed, careful, flexible, risk-averse, clinical. I grew up in a house where money was: Often really tight and not discussed. As a kid I worked and gave my parents my paycheck (cultural norm) so I didn't build up proper savings. Had poor financial habits until I met my hubby, who taught me how to be a good steward of it. The last time my Eftpos card was declined was: Many years ago. In five years, in financial terms, I see myself: Better off. Having paid off more mortgage debt and earning more from having progressed up the corporate ladder. I would love to have more money for: Debt repayment. I can't wait to be mortgage free! It's a few years away. Describe your financial low: Defaulted on a debt many years ago. Not intentional, mail went to an old address. Stuffed up my credit for seven years. Never want to go through that again. I give money away to: Approximately $200 a year to Givealittles.
RNZ News
4 hours ago
- RNZ News
Businesses should pass Paywave costs on through prices, Nicola Willis says
Photo: RNZ / Samuel Rillstone The Finance Minister says when a ban on contactless card payment surcharges comes into effect, businesses should pass on the cost to customers as they would any other business cost, if they can't absorb the bill. The government plans to ban surcharges on contactless card payments no later than May 2026. Commerce and Consumer Affairs Minister Scott Simpson announced the change on Monday afternoon, declaring: "That pesky note or sticker on the payment machine will become a thing of the past." "Shoppers will no longer be penalised for their choice of payment method, whether that's tapping, swiping or using their phone's digital wallet." The ban builds on the Commerce Commission's recent decision to reduce the interchange fees imposed on businesses for accepting Visa and Mastercard payments. Finance Minister Nicola Willis told First Up that change has led to an average reduction in costs for a typical retailer - a small business - of about $500 each week. "So our concern has been, now that reduction has happened, how do we make sure that gets passed through to you, when you're at the shop. What's to stop the retailer just charging you the same fee even though their costs has dropped." Banning the payway fee was the simplest and most transparent thing to do, Willis said. Businesses need to treat the interchange fee like any other cost in their business "and just include it in the price tag on the shelf", she said. "It'll make it easier for people to compare what they're really having to pay. Just think about how many times you've been at the counter and then suddenly you learn that it's a 2.5 or a 3.5 percent surcharge and that gets added to the price of whatever it is you're buying. That's not very transparent." Photo: The sector is warning prices may need to rise at restaurants and cafes due the ban. Asked if she thinks the ban will lead to inflationary prices, the minister said "I think that overall, people will charge the price that they think they can get away with". The change doesn't include international credit card payments or online payments. Willis said these payments were usually much more expensive to process and people using these systems have to pay a bit more because they are protected from things like online scams and fraud. Consumer NZ chief executive Jon Duffy told Morning Report with a reduction in the interchange fee, businesses would be making a profit off the surcharges if they remained in place. "Retailers still pay a small amount ot offer those services, we think that once... the decrease comes into effect it will be less than 1 percent of the total cost of the transaction," Duffy said. Many businesses would absorb this into the prices though there may be some who need to increase prices to cover the cost, he said. "But it would be just the same as if their... power bill or their rent went up." Consumer NZ was a bit disappointed online transactions were not included but it was understandable for now, he said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
6 hours ago
- RNZ News
Government's cost of living speech 'more spin than a front load washing machine'
Finance Minister Nicola Willis and Prime Minister Christopher Luxon. Photo: RNZ / Samuel Rillstone The Labour Party says a cost of living "sermon" by National Party Ministers reeks of desperation and spin. The government is on the defensive over its efforts to mitigate the cost of living, even as it announces fresh measures to save voters cash. On Monday, the coalition promised to legislate a ban on surcharges for contactless card payments from no later than May 2026. The Commerce Commission estimates New Zealanders are paying up to $150 million in surcharges each year - including $45 to $65 million in what it considers excessive charges. Prime Minister Christopher Luxon said it was a worthwhile policy but the "most important" thing the coalition could do was to "double down" on its long term economic plan. The government spent the first 10 minutes of yesterday's post-Cabinet media briefing outlining actions it had already taken in this plan: tax relief in last year's budget, cutting government spending and scrapping plans to increase petrol taxes to name a few. Finance Minister Nicola Willis stressed these steps did not mean everything was fixed but said the coalition had managed to get the country "back on course" since getting into office. "We know many people are still doing it tough and the economy is recovering from a protracted downturn. However, we know that the fundamental changes we are making will deliver," she said. "Economies are like oil tankers. You can't turn them around on a dime, but New Zealand is back on course." [h ] 'Out of touch' - Hipkins The latest Ipsos Issues Monitor survey saw Labour overtake National as the party New Zealanders consider most able to handle the cost of living . This was despite the Labour Party releasing no substantial new policy since the election. Labour Party leader Chris Hipkins. Photo: RNZ / Mark Papalii Opposition leader Chris Hipkins was quick to criticise the government's briefing, saying no amount of spin could convince the public they were better off. "According to the sermon that we just heard from Nicola Willis and Christopher Luxon, New Zealanders just don't understand the genius of their plan. "Things are supposedly getting better, according to them. I think it shows just how out of touch they are with the reality facing the vast majority of New Zealanders." Hipkins said there were now 18,000 fewer people working in construction, more people heading over to Australia and higher unemployment rates compared to the last election day. "No amount of spin from them is going to change the reality that things are getting worse for New Zealanders under their leadership. "I think we should start calling them Fisher and Paykel, because they've got more spin than a front load washing machine." Hipkins took aim at the government's move to hike director fees for the 22 Crown-owned entities; in some cases by up to 80 percent. "Increasing the pay of some of the best paid New Zealanders at a time when the majority of Kiwi families are struggling just to make ends meet shows just how out of touch they are." Luxon said public sector director fees had gotten "completely out of whack" compared to private sector fees and the government needed to be able to attract good people into public roles. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
