Latest news with #SuperGold
Otago Daily Times
3 days ago
- Business
- Otago Daily Times
Budget rates relief ‘necessary'
Oamaru. PHOTO: PETER MCINTOSH Rates relief for potentially hundreds of Waitaki senior citizens through Budget 2025, is "timely and necessary", Age Concern Otago says. The Budget last week announced a rise in the income abatement threshold for SuperGold Cardholders and their households to be eligible for the maximum rebate from $31,510 to $45,000, about the same rate as a couple receiving superannuation. "In the Waitaki District alone, over 5700 people receive NZ Super, many of whom will benefit directly from this support," Age Concern Otago chief executive Mike Williams said. "While we don't have exact figures on how many will qualify, we do know that around 40% of New Zealanders aged 65 and over have virtually no other income beyond NZ Super. With nearly a quarter of Waitaki's population aged 65 or older, and rates set to rise by an average of around 10% across the district, this support is both timely and necessary." The maximum rebate for the scheme will also increase from $790 to $805, while those SuperGold cardholders with income higher than $45,000 will be eligible for a smaller rebate. Ratepayers can apply for the new maximum rebate under the new abatement thresholds after July 1. Application forms will be available from councils and will also be able to be downloaded from the New Zealand Government website ( and then submitted to local councils. Waitaki district mayor Gary Kircher is positive in his support for the move. "It's a tough budget for many, though I see some benefits in the budget for our community," he told the Oamaru Mail. "It is good to see that more of our Super Gold Card holders will be eligible for rates relief, as the government recognises the pressures on local government and their ratepayers. "This is welcome news for many of our Waitaki ratepayers, especially those on fixed incomes who own their own homes." Any over-65s with questions about eligibility can contact Waitaki District Council on 03 433 0300 or by contacting service@ Mr Kircher said there were other good news items in the Budget. "An increase of $2.7b for roads schools and hospitals will help, though at least some of those increases had already been announced. "From a council perspective, it will be extremely helpful if the government increases the ability of NZTA to match more of our funding to help councils make progress on the overall underinvestment in roading. "There will be general benefits for our community with the sensible changes to prescriptions, and improvements to our after-hours healthcare, along with an extra $1b for new health infrastructure. "However, the zero increase to many budgets and the decrease in others will be difficult for most government agencies. "I doubt that it has been an easy task for the government, and there is some good logic behind a number of changes. "Unfortunately, many people are doing it bloody hard right now and there will some who are going to be slightly better off, but not all of those most affected." Waitaki MP Miles Anderson said the district would also benefit from Budget 2025's new Investment Boost initiative, which would provide "a major new tax incentive to encourage businesses to invest, grow the economy, and lift wages". "This is great news for farms and businesses in the Waitaki and the initiative is already seeing a strong positive response from the sector. "With our region's strong rural and supporting industries we need businesses to invest in productive assets — like machinery, tools, equipment, vehicles and technology. Investment drives productivity improvements, makes firms more competitive and supports employers to improve workers' wages. "Investment Boost allows a business to immediately deduct 20% of the cost of a new asset, on top of depreciation, meaning a much lower tax bill in the year of purchase." That meant better cashflows, which in turn, makes potential investments "stack up financially", he said. On top of a $164m investment in rural health, including expanded and improved after-hours health services in Oamaru, the Budget also strengthened education provision with $1.5billion to improve student achievement, including $646m of initiatives to ensure earlier identification of, and better help for, children with additional physical, learning and behavioural needs, he said. Another $700m would deliver new schools and classrooms. "We are making smart improvements in education that will make a real difference for young people here," Mr Anderson said.
Scoop
5 days ago
- Business
- Scoop
Tasman Debates Fairness Of Dog And Waste Fees
Dog fees in Tasman are going up after almost two thirds of submitters opposed the increases, and ratepayers will pick up the bill for other people's waste disposal. Those are just two of many changes to the district council's fees and charges for next financial year, most of which are increasing by 10%. But on Tuesday, the Tasman District Council grappled with the principles of fairness when trying to determine how dog and waste disposal fees were split. Elected members confirmed that its annual dog registration fees would jump by $25, bringing urban dogs up to $90 and rural dogs to $70 – increases of 38 and 56% respectively. A new working dog fee of $50 will also be introduced. The council went ahead with the hikes despite 39 of 64 submitters on the entire suite of fee changes specifically opposing the increases. Increasing the fee would ensure that the cost of delivering dog services – including enforcement, responding to complaints, managing public safety, operating the animal shelter, rehoming dogs, and educating the public – met the council's budget. The closed dog services account has previously run at a deficit, which then impacts either council debt or rates. Increasing the dog fees would also ensure the council continues its current approach that dog owners pay 95% of the costs of local dog services, in keeping with user pays principles. But the scale of the increases concerned some elected members. Mayor Tim King's proposal to stage the increase over two years lapsed due to a lack of support, as did councillor Glen Daikee's suggestion that SuperGold cardholders get reduced fees for urban dogs. 'Targeted relief for these residents would be worth it. 60% of people on a Super card over 65 are living on a fixed income essentially, and they don't have the ability to absorb these things as easily as others,' Daikee said. His proposal would have had to be processed as a rebate, which would come with additional administrative costs. However, members were interested in transitioning to a different dog fee framework in the future with 'much higher' base fees, but with rebates offered for responsible dog owners. 'At the moment there really isn't a significant incentive or disincentive between a good dog owner and a bad dog owner,' King said. Resource recovery centres across the district are also receiving less waste, which might be an otherwise positive result for the council if it didn't complicate budget-setting. Waste volumes have fallen by 28%, or 7500 tonnes, across Tasman over the last two years, with the Richmond centre bearing the brunt of the drop at 6000 tonnes. The fall is attributed to a combination of a slower economy, waste minimisation initiatives, diversion to York Valley Landfill in Nelson, and increased illegal dumping. Similar to dogs, the council has been seeking to recover most of its waste processing costs through those who use the service and drop off waste. But many of the costs of running the resource recovery centres are static and don't decrease as the amount of waste decreases, meaning that dumping costs need to go up as waste shrinks. The council's initial proposal was to increase the weight-based charge for mixed refuse by 28%, from $360.60 to $425.50 per tonne, to ensure that resource recovery was fully funded. However, feedback from industry has indicated that jumps of that scale would increase the amount of waste being sent straight to the York Valley Landfill, reducing the council's revenue. Elected members agreed to increase the rate by a smaller 15%, to about $414.70 per tonne, to try and reduce the amount of waste diversion. That choice still leaves a deficit for next financial year and will mean another 0.215% added onto rates – already proposed to go up 8.8% – to cover the shortfall. Council staff suggested a lesser increase might reduce illegal dumping, thus providing a community-wide benefit, but some councillors were wary of using rates to subsidise waste disposal. 'It's completely inconsistent with people taking personal responsibility … it sends all the wrong messages,' said Christeen Mackenzie. The waste disposal charges will be reviewed in November 2025. The new fees will be implemented on 1 July.
Scoop
22-05-2025
- Business
- Scoop
2025 Budget Provides Welcome Relief For Older Ratepayers
Press Release – LGNZ This was always expected to be a tight budget due to the current economic conditions, so were pleased to see the Government has opted to ease the financial pressure on older New Zealanders many of whom are facing a cost-of-living crisis, says … Local Government New Zealand (LGNZ) says that yesterday's Budget 2025 announcement of changes to the rates rebate scheme is a win for the community – particularly older people struggling to afford rates. 'This was always expected to be a tight budget due to the current economic conditions, so we're pleased to see the Government has opted to ease the financial pressure on older New Zealanders – many of whom are facing a cost-of-living crisis,' says LGNZ acting chief executive Scott Necklen. 'LGNZ has been advocating for the income threshold for rates rebate eligibility to be raised for low-and fixed-income property owners for some time. As a further step we'd like to see the Government investigate options for data sharing between councils, Internal Affairs and MSD to proactively identify households that qualify for a rates rebate, rather than waiting for people to apply. 'But an expanded rebate and new abatement threshold for SuperGold card holders is a great start.' Scott Necklen says that local and central government are in full agreement that rates cannot keep rising at the level they have been, and that many councils need more funding levers to address pressing infrastructure needs. 'Rates are – and will continue to be – councils' main source of income, and play a vital role in councils being able to meet their community's infrastructure needs. 'It's a welcome relief to see the Government implicitly acknowledging that rates rises are inevitable due to the growing pressure on local government, especially in the face of councils' rising insurance costs, inflation and infrastructure needs. 'We acknowledge that Government has already added some tools in our toolkit – such as moving from development contributions to development levies. New tools like this help keep rates at bay. But we need to keep working with the Government on more incentives for councils, so that ratepayers are not disincentivised by housing and wider economic growth,' says Scott Necklen. Scott Necklen also acknowledged several other budget outcomes that will have an effect on local government: Regional Deals: 'While regional deals have been touted by the Government as something that will help unlock funding and resource opportunities to support councils to improve roads, infrastructure and housing in their regions, it's disappointing to see that no funding is available to invest in the initiatives agreed as part of any future deals. If regional deals are to replicate the success of city deals overseas, they will need dedicated government funding.' Transport: 'While it's great to see increased investment in rail and ferry initiatives, we also know there's a real need for widespread investment in our aging transport network. We're disappointed to see some reductions in transport funding. These costs will instead be covered by the National Land Transport Programme (NLTP), which creates additional pressure on the fund and on the transport network. Without additional tools or further funding, as a country we'll have to make tough choices soon around where we defer maintenance and leave it up to future generations.' Recovery works: 'We're happy to see the Government commit extra funding to complete recovery works on local roads affected by the 2023 North Island weather events, as these communities continue to get back on their feet following widespread damage to their roading infrastructure.' Funding to support local journalism: 'We're pleased to see the Government recognises the key role that local journalism plays in telling local stories, while raising transparency and awareness around community issues. This is particularly important for local elections later this year.' About LGNZ: LGNZ champions, connects and supports local government. We represent the national interest of councils across New Zealand to deliver more of what matters in their communities. LGNZ is involved in policy, reforms, programmes, and advocacy as well as providing advice, consultancy and training to councils and their staff.
Scoop
22-05-2025
- Business
- Scoop
2025 Budget Provides Welcome Relief For Older Ratepayers
Press Release – LGNZ This was always expected to be a tight budget due to the current economic conditions, so were pleased to see the Government has opted to ease the financial pressure on older New Zealanders many of whom are facing a cost-of-living crisis, says … Local Government New Zealand (LGNZ) says that yesterday's Budget 2025 announcement of changes to the rates rebate scheme is a win for the community – particularly older people struggling to afford rates. 'This was always expected to be a tight budget due to the current economic conditions, so we're pleased to see the Government has opted to ease the financial pressure on older New Zealanders – many of whom are facing a cost-of-living crisis,' says LGNZ acting chief executive Scott Necklen. 'LGNZ has been advocating for the income threshold for rates rebate eligibility to be raised for low-and fixed-income property owners for some time. As a further step we'd like to see the Government investigate options for data sharing between councils, Internal Affairs and MSD to proactively identify households that qualify for a rates rebate, rather than waiting for people to apply. 'But an expanded rebate and new abatement threshold for SuperGold card holders is a great start.' Scott Necklen says that local and central government are in full agreement that rates cannot keep rising at the level they have been, and that many councils need more funding levers to address pressing infrastructure needs. 'Rates are – and will continue to be – councils' main source of income, and play a vital role in councils being able to meet their community's infrastructure needs. 'It's a welcome relief to see the Government implicitly acknowledging that rates rises are inevitable due to the growing pressure on local government, especially in the face of councils' rising insurance costs, inflation and infrastructure needs. 'We acknowledge that Government has already added some tools in our toolkit – such as moving from development contributions to development levies. New tools like this help keep rates at bay. But we need to keep working with the Government on more incentives for councils, so that ratepayers are not disincentivised by housing and wider economic growth,' says Scott Necklen. Scott Necklen also acknowledged several other budget outcomes that will have an effect on local government: Regional Deals: 'While regional deals have been touted by the Government as something that will help unlock funding and resource opportunities to support councils to improve roads, infrastructure and housing in their regions, it's disappointing to see that no funding is available to invest in the initiatives agreed as part of any future deals. If regional deals are to replicate the success of city deals overseas, they will need dedicated government funding.' Transport: 'While it's great to see increased investment in rail and ferry initiatives, we also know there's a real need for widespread investment in our aging transport network. We're disappointed to see some reductions in transport funding. These costs will instead be covered by the National Land Transport Programme (NLTP), which creates additional pressure on the fund and on the transport network. Without additional tools or further funding, as a country we'll have to make tough choices soon around where we defer maintenance and leave it up to future generations.' Recovery works: 'We're happy to see the Government commit extra funding to complete recovery works on local roads affected by the 2023 North Island weather events, as these communities continue to get back on their feet following widespread damage to their roading infrastructure.' Funding to support local journalism: 'We're pleased to see the Government recognises the key role that local journalism plays in telling local stories, while raising transparency and awareness around community issues. This is particularly important for local elections later this year.' About LGNZ: LGNZ champions, connects and supports local government. We represent the national interest of councils across New Zealand to deliver more of what matters in their communities. LGNZ is involved in policy, reforms, programmes, and advocacy as well as providing advice, consultancy and training to councils and their staff.
Otago Daily Times
22-05-2025
- Business
- Otago Daily Times
Budget gambles on growth
Every Budget is a juggle. Money is spent here and there. Taxes are tweaked, and spending cuts are made. Budget 2025 is especially so. Somehow, the government and Finance Minister Nicola Willis had to juggle finances and politics. Somehow, she had to conjure up many billions of dollars to salve wounds in health, reinforce the ramparts of defence, rev up roads and enhance education. At a time when money was not growing anywhere, let alone on trees, she and Prime Minister Christopher Luxon desperately need both the illusion and reality of "growth". Growth will increase the tax take and lower unemployment and benefit payments. Decent growth can reverse deficits into surpluses and raise voter morale. Ms Willis' "no BS Budget", or as she said yesterday, "a responsible Budget to secure New Zealand's future", desperately endeavoured to find extra money. New Zealand's debt is predicted to rise to 46% of GDP before sliding back. The Budget, despite the juggling, will continue to run deficits for a few years yet, at least. The spectre of long-term structural deficits continues to loom. Covid and post-Covid spending splurges have accentuated New Zealand's tricky finances. Further, the advent of United States President Donald Trump detrimentally affects international economic health and therefore New Zealand. Politically, Ms Willis and co are betting that the public will recognise their "responsibility", that the government will be rewarded for staying the course. Such is the desperation that the government swooped on the massive blowouts in the expected costs of "pay equity" settlements. This gamble produced more than half of the savings, $12.8 billion, needed over the next four years to make the Budget credible. This is the fraught juggle that could see the government come crashing down. Few will be concerned that the KiwiSaver subsidy will disappear for those earning more than $180,000. Halving the amount for the rest, and altogether $3.7b will be saved. Means testing for first-year Best Start payments, increasing the threshold for student-loan repayments and means testing parents for Jobseeker allowances for 18- and 19-year-olds are ways to generate more money. Various areas of government will have to make do without increases, and RNZ's budget will be cut. Impacts will continue to emerge over the next few days as details are scrutinised and affected parties react. There are 116 savings measures. On the other side of the ledger are 228 new spending initiatives, the likes of higher rate rebate levels for SuperGold cardholders and the 12-month prescription provision. There were also the pre-Budget announcements for the Social Investment Fund, the screen production rebate, urgent healthcare funding, more money to tackle truancy and for maths education, and to combat drug smuggling. The biggest by far was the $12b over the coming years for defence. The Budget day's new spending is the attempt to stimulate business productivity and growth through "Incentive Boost", $6.8b foregone in tax revenue over four years through immediate accelerated depreciation for capital spending. While there are no magic wands to increase productivity, the government is banking on its collection of changes to prompt more efficiency. Increases to learning support in education should not be scorned. Ms Willis did her best to lower expectations. Indeed, there is little or nothing for the "squeezed middle", which received small "tax cuts" last year when tax thresholds were adjusted. However, despite claims of an "austerity" Budget, taxes (and the overall size of the government) will increase again, partly through bracket creep or fiscal drag. Increases in wages and salaries cause more income to be taxed at higher levels. There will remain those on the Right who think that Ms Willis, despite the rhetoric, is tinkering and not tackling fundamental financial unsustainability. Others will see her as Scrooge, mean-spirited and foolishly stalling an economy that requires government stimulus. Faced with tough choices, Ms Willis has juggled the finances in a way that carries high political risk. Much will depend on whether the promised growth occurs next year.
