Budget 2025: KiwiSaver contribution changes a burden for small businesses and self-employed
Wonky Box co-founder Angus Simms believes the Government's changes to KiwiSaver contributions will 'be a burden' on small businesses
Announced as part of Budget 2025, the Government is halving the contribution it makes to KiwiSaver members to a maximum of $261 a year and scrapping the
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an hour ago
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Wool Carpet Decision A ‘Parachute' For Farmers
Kāinga Ora's decision to use wool carpet in its social housing is a massive win for wool growers but won't be enough to save the industry on its own, Federated Farmers says. "Our wool industry is in major freefall, and this move from Kāinga Ora is the parachute we desperately need," Federated Farmers meat and wool chair Toby Williams says. "This will slow our drop a bit but, in reality, what we really need now is an updraft to lift wool back up into being the number-one fibre globally. "It's certainly a massive step in the right direction, though, and we're very pleased with the announcement yesterday." Williams says Kāinga Ora is New Zealand's largest landlord, so its contract has the capability to soak up large volumes of wool, which in turn will help drive up prices. As well as transitioning to using wool carpet in its new social housing, Kāinga Ora will also use wool carpet in existing homes if the whole house needs recarpeting, such as when renovating older properties. The decision comes after a recent Request for Proposal (RFP) inviting both wool and nylon carpet providers to tender for the supply of carpet and underlay in its properties. "Last year Federated Farmers slammed Kāinga Ora for initially deciding to categorically rule out using woollen carpets in its social housing," Williams says. "Our homegrown wool is an incredible product and it beggared belief that Kāinga Ora weren't even giving wool the chance to compete against nylon products. "That was a total slap in the face for struggling Kiwi sheep farmers and rural communities, and we made it very clear it was a ridiculous, short-sighted decision. "It's great they saw sense and allowed wool to have a crack - and even better that a wool provider has won the contract. "It just goes to show that when wool is given a fair chance, it comes out on top as a natural, sustainable and renewable alternative to cheap and nasty plastic alternatives." Williams says the decision is the result of a massive collaborative effort across the entire wool industry. "Federated Farmers and other groups have been working really hard for years to get the Government engaged with, and listening to, wool growers. "We recently launched our SOS: Save Our Sheep campaign to hammer home the message that we need urgent action if we're to keep our sheep and wool industry from collapsing entirely. "Farmers are sick of woolly ideas - they want solid actions like this. "It just shows that strong leadership from the Government can be a factor in restoring confidence to our embattled wool industry." Williams says the housing agency's decision is also a big step forward for environmental sustainability. "Using cheap, nasty plastic carpets might save a few bucks, but at what cost to the environment? "If Kāinga Ora had picked a fossil fuel-derived synthetic carpet over a sustainable New Zealand-grown woollen product, just because it's cheaper, it would have been a disaster." Williams says he's also really pleased that high-quality, sustainable Kiwi wool will be in the homes of some of New Zealand's most vulnerable tenants. Kāinga Ora will transition to using wool carpet in its new homes from 1 July 2025, when the supply arrangements come into effect.
Scoop
3 hours ago
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Wool Carpets For State Houses A Win-Win
Press Release – New Zealand Government State housing agency Kinga Ora announced today that from next month, a new supplier agreement will deliver woollen carpets for the fit-out of new state homes. Minister for Economic Growth Hon Mark Patterson Associate Agriculture Minister The return of wool carpets to state homes has been welcomed by Economic Growth Minister Nicola Willis and Associate Agriculture Minister Mark Patterson. State housing agency Kāinga Ora announced today that from next month, a new supplier agreement will deliver woollen carpets for the fit-out of new state homes. 'The decision is great news for sheep farmers, and all the New Zealanders whose jobs and incomes are tied to the fortunes of our world-leading wool industry. 'The Government wants wool producers to have more opportunities like this, which is why in March we issued a directive to 130 Government agencies requiring them to purchase woollen products for building construction and refurbishment, wherever practical and appropriate. 'Kāinga Ora's new supplier agreement was made possible because the agency chose to re-open an initially nylon-only carpet tender and give wool a chance to compete. 'I'm told woollen carpet manufacturers responded very strongly to that opportunity and that the new carpet supply agreements come with no additional cost. 'The message is clear: When wool was put back on the table it more than held its own, delivering value for taxpayers and a win for sheep farmers. 'This proves the value of the Government's moves to give wool a fair shot in publicly funded procurement decisions. 'We have directed that from 1 July all public entities must use woollen fibres, where practical and appropriate, in government buildings. The new policy, announced in April, directs agencies to identify opportunities to use woollen products, and to properly consider a range of factors in procurement including whole-of-life cost, sustainability and health benefits. 'We're leveraging government spending to back the wool industry and the New Zealand economy. I hope private businesses will follow our lead.' Mark Patterson says the move continues to deliver on a New Zealand First and National Party coalition agreement to prefer the use of woollen fibres in government buildings. 'Woollen fibres create safer, healthier and more sustainable living environments for families. 'We know farmers will share our enthusiasm about this announcement. It is another example of us doing our bit. The Government is determined to help lift the fortunes of the strong wool sector in supporting our sheep farmers' Mr Patterson says. Notes The total value of the new Kāinga Ora contract is commercially sensitive and so can't be disclosed. Kāinga Ora is expected to fit out about 4500 homes in the next three years. Some contracts for carpet in homes have already been let, but under the new supply agreement, newly contracted fit-outs will be met through the wool-carpet supply contract. Where nylon carpet has already been installed in existing homes Kainga Ora will continue to use nylon carpet for single room or smaller patch repairs.
Scoop
3 hours ago
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IRD Offers Tax Tips For Destroying Precious Wetlands
On one hand, the Government has policies to protect and restore our critically endangered wetlands. On the other, the tax department is using the destruction of those same wetlands as a helpful hint for a tax write-off. Forest & Bird is asking Inland Revenue Te Tari Taake whether the fines for illegally draining a wetland are also tax deductible, after the department published a 'how-to' on claiming expenses for destroying critical habitats. An official IRD tax guide, released this month, uses the example of a farmer draining a wetland to convert it to grazing land to illustrate a tax-deductible agricultural expense. 'We had to read this twice to believe it,' says Forest & Bird's Regional Conservation Manager, Scott Burnett. 'On one hand, the Government has policies to protect and restore our critically endangered wetlands. On the other, the tax department is using the destruction of those same wetlands as a helpful hint for a tax write-off.' The example (Example 8, page 12) in IRD's Commentary on the Taxation (Budget Measures) Bill (No 2) explicitly states that the cost of draining a wetland for agricultural purposes is tax deductible. 'This is profoundly unhelpful and sends all the wrong signals,' says Mr Burnett. 'Draining a wetland is not a casual business decision; it's an environmentally destructive act that is illegal in most circumstances. Our remaining wetlands are precious taonga. They are the last refuge for endangered species and are essential for filtering our water and a nature-based solution for preventing floods.' 'Councils around the country are prosecuting people for this very activity. We're curious if IRD's tax advice extends to the non-deductibility of the court-imposed fine, and enforcement action, when the regional council prosecutes the farmer for draining the wetland.' Since European settlement, approximately 90% of New Zealand's wetlands have been drained or filled for farming or urban development. This dramatic loss makes the protection and restoration of the remaining wetlands a national priority for conservation and climate resilience. 'While DOC, councils, and community groups are spending millions of taxpayer and ratepayer dollars restoring wetlands, the IRD is effectively publishing a 'how-to' guide on writing off their destruction.' Forest & Bird is calling on Inland Revenue to remove this example from its commentary and ensure all official government guidance aligns with New Zealand's environmental laws and conservation goals.
