Latest news with #BetterTaxesforaBetterFuture
Scoop
22-05-2025
- Business
- Scoop
Budget Of Austerity Piles On Least Well-Off, Misreads Public Mood
As your average New Zealander struggles to pay the bills, the Government's 2025 Budget piles austerity on the least well-off, and misreads the public mood. Recent polling commissioned by the Better Taxes for a Better Future campaign showed the vast majority of New Zealanders supported increased spending on public services, and only 3% were in favour of cuts. By limiting its operating allowance to $1.3b to reduce debt, following the introduction of unaffordable tax cuts last year and the failure to advance other meaningful revenue gathering options, the Government has manufactured the need for cuts in spending on public services that New Zealanders rely upon on a daily basis. 'The most significant contributor to the Government's $5.3bn in savings required to reach its arbitrary operating allowance are the lowest paid working women through the scrapping of the pay equity settlements,' says Glenn Barclay, Better Taxes campaign spokesperson. 'Many other good programmes have also been sacrificed to allow the Government to get away with such a miserly operating allowance.' 'The total cost to mainly low paid working people from scrapping pay equity of $12.8bn over 4 years represents one of the largest wealth transfers in modern history, and will have a real cost for the lives of some of the least well off in New Zealand.' Other items in the Budget are worth commenting on. 'While a modest increase in the abatement threshold for Working for Families is to be welcomed, it will be paid for by increasing the abatement rate and means testing the first year of Best Start payments. Here we see the Government giving to young families with one hand, while taking away with the other.' 'The flagship Investment Boost allowing for accelerated depreciation on new assets to be deducted from taxable income, while a useful tool to grow GDP, implemented in this untargeted way stands to benefit monopolistic companies like supermarket chains, electricity generators and banks at the expense of the collective revenue pool,' says Glenn Barclay. 'With the substantial cost of $1.7 billion per year, it would have been much better to use this tool to focus on areas such as advanced manufacturing or green technology.' 'Similarly the halving of Government contributions to KiwiSaver is shortsighted, when we ought to be supporting lower income earners and young people to grow their retirement savings. On the other hand the Government has significantly expanded the ability for SuperGold card holders to claim rates rebates. It looks like a case of valuing the priorities of older property owners over the future retirement savings of today's workers.' 'The Budget reflects choices about what the Government values and how it's going to pay for those things. This budget shows the government does not value the work of the least well-off in New Zealand, who are paying for its austerity,' says Glenn Barclay. 'It is inescapable that we need to generate more revenue to pay for the public goods New Zealanders value, like public healthcare, education, transport and housing. It is wrong to pretend that we can deliver the kind of society New Zealanders want now and in the future by constantly reducing the collective pool,' says Glenn Barclay. 'Successive governments have failed to ensure we're collecting enough revenue to meet our needs and ensure those who can afford to contribute more, make that contribution. Polling indicates New Zealanders want increased investment in public services and think that the wealthy should be contributing more,' says Glenn Barclay. 'Today's Budget fails to grapple with that challenge to respond to what the New Zealand public wants. With this Budget the government continues to ask more of those who have the least.' 'We call on the Government to consider common sense taxes that many other countries already have, like a capital gains tax and a wealth tax, so we have enough revenue to allocate to the public goods that enable all New Zealanders to thrive.'
Scoop
21-05-2025
- Business
- Scoop
Government Decision To Abandon Proposed Digital Services Tax Disappointing
Press Release – Better Taxes for a Better Future We need to know how the Government intends to plug the $479m revenue gap left by their decision to drop the Digital Services Tax, at a time when our public services, particularly health, are in crisis because of underfunding, says Glenn Barclay … The decision by the Government to abandon the proposed Digital Services Tax has been described as very disappointing by the Better Taxes for a Better Future campaign, raising questions about how the Government intends to fill the revenue gap left by this move. It also raises questions about how the Government will ensure digital services companies are paying a fair rate of tax on their earnings in New Zealand. The Digital Services Tax Bill, which was introduced by the previous Labour Government has been sitting on Parliament's order paper since August 2023. It would have instituted a 3% tax on digital services revenue earned from New Zealand customers by large digital services companies. Treasury had already included the revenue from the proposed tax in its latest forecasts and estimated it would contribute $479m between 2027 and 2029. 'We need to know how the Government intends to plug the $479m revenue gap left by their decision to drop the Digital Services Tax, at a time when our public services, particularly health, are in crisis because of underfunding,' says Glenn Barclay spokesperson for the Better Taxes campaign. 'The digital economy has proven very difficult to tax and the absence of a digital services tax has allowed multi-national tech companies to avoid paying their fair share of tax in Aotearoa New Zealand.' 'Around 18 countries already operate digital services taxes, and while the American administration doesn't like them, we are not aware of any countries repealing these laws in response to threats from the Trump administration,' says Glenn Barclay. 'Instead of giving in to such threats,the Government should have proceeded with the Bill, or at the very least left it on the Parliamentary Order Paper until it could be implemented or an alternative developed.' 'If the Government is stepping away from the Bill then we need to know how it intends to progress the taxation of multi-national tech companies in this country, to ensure that these companies contribute to this country, rather than just exploiting their privileged position.' says Glenn Barclay. 'We don't share the Minister's optimism about an enforceable agreement on minimum corporate tax rates at the OECD in the medium term in the face of opposition from the Trump Administration. New Zealand needs another solution.' 'In addition it leaves another big question mark over how the Government will ensure advertising-dependent news local media will survive when their news and advertising is being taken by the social media giants who don't pay a fair rate of tax,' says Glenn Barclay.
Scoop
21-05-2025
- Business
- Scoop
Government Decision To Abandon Proposed Digital Services Tax Disappointing
Press Release – Better Taxes for a Better Future We need to know how the Government intends to plug the $479m revenue gap left by their decision to drop the Digital Services Tax, at a time when our public services, particularly health, are in crisis because of underfunding, says Glenn Barclay … The decision by the Government to abandon the proposed Digital Services Tax has been described as very disappointing by the Better Taxes for a Better Future campaign, raising questions about how the Government intends to fill the revenue gap left by this move. It also raises questions about how the Government will ensure digital services companies are paying a fair rate of tax on their earnings in New Zealand. The Digital Services Tax Bill, which was introduced by the previous Labour Government has been sitting on Parliament's order paper since August 2023. It would have instituted a 3% tax on digital services revenue earned from New Zealand customers by large digital services companies. Treasury had already included the revenue from the proposed tax in its latest forecasts and estimated it would contribute $479m between 2027 and 2029. 'We need to know how the Government intends to plug the $479m revenue gap left by their decision to drop the Digital Services Tax, at a time when our public services, particularly health, are in crisis because of underfunding,' says Glenn Barclay spokesperson for the Better Taxes campaign. 'The digital economy has proven very difficult to tax and the absence of a digital services tax has allowed multi-national tech companies to avoid paying their fair share of tax in Aotearoa New Zealand.' 'Around 18 countries already operate digital services taxes, and while the American administration doesn't like them, we are not aware of any countries repealing these laws in response to threats from the Trump administration,' says Glenn Barclay. 'Instead of giving in to such threats,the Government should have proceeded with the Bill, or at the very least left it on the Parliamentary Order Paper until it could be implemented or an alternative developed.' 'If the Government is stepping away from the Bill then we need to know how it intends to progress the taxation of multi-national tech companies in this country, to ensure that these companies contribute to this country, rather than just exploiting their privileged position.' says Glenn Barclay. 'We don't share the Minister's optimism about an enforceable agreement on minimum corporate tax rates at the OECD in the medium term in the face of opposition from the Trump Administration. New Zealand needs another solution.' 'In addition it leaves another big question mark over how the Government will ensure advertising-dependent news local media will survive when their news and advertising is being taken by the social media giants who don't pay a fair rate of tax,' says Glenn Barclay.
Scoop
21-05-2025
- Business
- Scoop
Government Decision To Abandon Proposed Digital Services Tax Disappointing
The decision by the Government to abandon the proposed Digital Services Tax has been described as very disappointing by the Better Taxes for a Better Future campaign, raising questions about how the Government intends to fill the revenue gap left by this move. It also raises questions about how the Government will ensure digital services companies are paying a fair rate of tax on their earnings in New Zealand. The Digital Services Tax Bill, which was introduced by the previous Labour Government has been sitting on Parliament's order paper since August 2023. It would have instituted a 3% tax on digital services revenue earned from New Zealand customers by large digital services companies. Treasury had already included the revenue from the proposed tax in its latest forecasts and estimated it would contribute $479m between 2027 and 2029. 'We need to know how the Government intends to plug the $479m revenue gap left by their decision to drop the Digital Services Tax, at a time when our public services, particularly health, are in crisis because of underfunding,' says Glenn Barclay spokesperson for the Better Taxes campaign. 'The digital economy has proven very difficult to tax and the absence of a digital services tax has allowed multi-national tech companies to avoid paying their fair share of tax in Aotearoa New Zealand.' 'Around 18 countries already operate digital services taxes, and while the American administration doesn't like them, we are not aware of any countries repealing these laws in response to threats from the Trump administration,' says Glenn Barclay. 'Instead of giving in to such threats,the Government should have proceeded with the Bill, or at the very least left it on the Parliamentary Order Paper until it could be implemented or an alternative developed.' 'If the Government is stepping away from the Bill then we need to know how it intends to progress the taxation of multi-national tech companies in this country, to ensure that these companies contribute to this country, rather than just exploiting their privileged position.' says Glenn Barclay. 'We don't share the Minister's optimism about an enforceable agreement on minimum corporate tax rates at the OECD in the medium term in the face of opposition from the Trump Administration. New Zealand needs another solution.' 'In addition it leaves another big question mark over how the Government will ensure advertising-dependent news local media will survive when their news and advertising is being taken by the social media giants who don't pay a fair rate of tax,' says Glenn Barclay.
Scoop
21-05-2025
- Business
- Scoop
Poll Shows Overwhelming Majority Support Increase In Spending On Public Services
Press Release – Better Taxes for a Better Future This poll shows that there is widespread support for greater investment in our public services to meet the needs of New Zealanders, such as in healthcare, and education, says Glenn Barclay spokesperson for the Better Taxes campaign. As the Government prepares to release a Budget that will deliver further cuts to public services an overwhelming majority of New Zealanders support increased spending on those services, according to a new poll commissioned by the Better Taxes for a Better Future campaign. The Talbot Mills Research poll asked whether government spending on key public services such as hospitals, schools, and the police should increase (a lot or a bit), stay the same or decrease (a bit or a lot). 83% of respondents supported increases in public spending, and this support remained high across the political spectrum with even 62% of ACT supporters endorsing an increase. 'This poll shows that there is widespread support for greater investment in our public services to meet the needs of New Zealanders, such as in healthcare, and education,' says Glenn Barclay spokesperson for the Better Taxes campaign. 'It's clear that, even in these tough economic times, people across the political spectrum realise investment in public services now is important to help build a better future.' The poll also asked if wealthier New Zealanders ( who earn over $180,000 per year and/or have assets worth more than $5m) should pay more, the same, or less tax than they do at present. A majority (57%) supported the wealthy paying more tax. 'This may not be a surprising result for Labour, Green and Te Pāti Māori supporters, yet even a majority of National Party supporters favour the wealthy paying more tax,' says Glenn Barclay. 'The IR report into High Net Worth Individuals in 2023 demonstrated that the wealthiest 310 families in New Zealand had an effective tax rate of 9.4% compared to over 20% for the average New Zealander and it is clear that there is support for rectifying this imbalance,' says Glenn Barclay. 'The responses to these two questions send a clear message that New Zealanders don't want to see cuts to essential public services, and the government needs to be looking at other ways to generate the revenue we need to provide services that will enable all New Zealanders to succeed,' says Glenn Barclay. 'We encourage the Government and opposition parties to be looking at tax changes that would ensure those that have more to contribute, make that contribution. Gathering more revenue from wealth and gains from wealth would put us in a better position to address the challenges we face in delivering public services, addressing poverty and climate change, and funding major infrastructure.' Note: The Better Taxes for a Better Future Campaign is a coalition of over 20 organisations led by Tax Justice Aotearoa. We believe that tax reform is the only solution to the current challenges facing Aotearoa NZ. We need the tax system to: be transparent raise more revenue to enable us address the challenges we face make sure people who have more to contribute make that contribution: that we gather more revenue from wealth, gains from wealth, all forms of income, and corporates make greater use of fair taxes to promote good health and environmental health address the tax impact on the least well off in our society.
