Best of Business

What makes the National Party's tax plan a winner is severalfold.   1) It's substantive. It's not pocket change. For many it is a material boost to their income.   2) It starts from day one, so what you get arrives immediately, not after years.   3) The taxes aren't the sort of thing that will scare people. If an immigrant or investor pays more to enter the country, who will complain about that?  ...

A foodbank owner says National's tax plan does a lot for middle income earners, but not much for those really struggling.   It's promising a $14.6 billion package - adjusting income tax brackets for inflation and expanding tax credits.   Community leader David Letele told Kate Hawkesby if we can help people, we should.   He says they're seeing more and more starving children, and some who haven't...

National says independent legal advice tells them a tax on foreigners buying houses will work.   The party's unveiled its $14.6 billion tax policy, which includes shifting income brackets and expanding tax credits.   It would pay for it, in part, by ending the ban on foreign buyers - for homes worth more than $2 million and taxing them 15 percent.   National finance spokesperson Nicola Willis told...

KiwiSaver investments in companies that cause social and environmental harm have reached a record high.   Charity Mindful Money has found 8.9 percent of KiwiSaver funds go into companies the public generally want to avoid.   Mindful Money Chief Executive, Barry Coates, told Kate Hawkesby climate change is a major concern, but investment in fossil fuels by KiwiSaver is at a record high.   He says t...

Grant Robertson believes Chris Luxon is confused about his own tax plan.   National's policy would lift income tax brackets to compensate for inflation and expand tax credits.    It promises to pay for the plan with about $8.4 billion worth of cuts and $6.2 billion of revenue increases, including taxing foreign buyers, which it thinks will bring in about $700 million.   Finance Minister Grant Robe...

Labour is casting doubt over National's newly unveiled tax policy that promises to end the foreign buyers ban. National claims that their proposed 15 percent tax on overseas homebuyers will generate the revenue needed to help fund tax cuts. Infometrics principal economist Brad Olsen says it's clear that National has looked through property price data and examined foreign purchases before the ban w...

It's been a choppy month for stock markets globally, with the NZX underperforming throughout August. The NZX is currently down by 5 percent for the month, with experts concerned this dip has wiped out gains made in the first half of 2023. Milford Asset Management analyst Jeremy Hutton says rising interest rates are a major factor in the downturn, as many economies are working to avoid recession. L...

Global investment giant BlackRock warns central banks won't start cutting interest rates anytime soon. Their strategists believe western central banks are committed to stamping inflation out for good- despite the economic troubles weighing China down. NZ Herald Wellington business editor Jenee Tibshraeny says BlackRock is convinced central banks will overlook China's economic climate to focus on i...

The controversial Central Otago airport near Tarras could host over 3.5 million passengers a year.   This is according to documents released by Christchurch airport - who will be building it.   The report also confirms the airport will impact the village of Tarras, but the site is the best spot between Queenstown, Cromwell and Alexandra.   Chief Strategy and Stakeholder Officer at Christchurch Air...

90-day trials are back in the campaign conversation.   National is promising to reintroduce the scheme, which allows employers to dismiss workers - without cause - within the first three months of employment.   The trials were heavily restricted by the Labour Government in 2018.   New Zealand Restaurant Association President Mike Egan told Mike Hosking says it's good news. Egan says it worked well...

Christopher Luxon has confirmed National will make changes to the tax brackets if it wins the election. It'll unveil its tax policy later this morning, with the leader trumpeting benefits to the "squeezed middle", meaning as much relief for middle income earners,  as higher income earners.   It'll be funded through a mix of spending cuts and "targeted" revenue tools.   Luxon told Mike Hosking it's...

Fears have come that new legalisation aimed at taxing multinational companies that provide digital services might not be as effective as hoped.   The Government has unveiled the Digital Services Tax, which will slap three percent on New Zealand revenue of companies like Amazon, Meta and Google.   It's expected to bring in $222 million over four years.   However, Tech Commentator Paul Spain told Ka...

National is expected to make tax bracket changes to keep up with inflation.   It'll unveil its policy in a few hours, with Finance Spokesperson Nicola Willis saying it'll be funded through a mix of spending cuts and "targeted" revenue tools.   She's long talked about the "squeezed middle", meaning as much relief for middle income earners as higher income earners.   Auckland University tax expert C...

Tourism Holdings appears to be on the road to recovery, post-pandemic. It's reported a near $50-million dollar profit in the year to June's end, a change reversing years of losses because of Covid. It was bolstered by merging with Apollo Tourism and Leisure. Chief Executive Grant Webster says this recovery has been faster than the company predicted, but they needed the extra boost. "We need it, fo...

A stark warning over our economy. A new International Monetary Fund report says our economy will grow about one percent next year, and inflation won't return to the target band until 2025. It's also warned the Government it should cut back on spending and raising interest rates. Infometrics chief economist Brad Olsen say the risk factors aren't good if inflation and wages challenges linger. "The R...

Qantas CEO Alan Joyce has found himself in front of Australia's Senate to defend accusations of profiteering and 'misleading the Australian public'. The company is under fire for allegedly not disclosing the true value of unredeemed flight credits. Australian correspondent Oliver Peterson says the airline owes customers an extra $100 in flight credits on top of the $370 million Qantas already owes...

I’m channelling my inner John McEnroe today. If there is such a thing.   This $4 billion cut to public service spending over the next four years that the Government has announced six weeks out from the election.   There’s only one response to it, isn’t there? And this is where tennis legend John McEnroe comes into it.   You cannot be serious!   You cannot be serious Grant Robertson. You cannot be...

The Government is defending its level of spending over the past few years, saying much of it was out of its control.   It's cutting spending on public contractors and consultants, in a bid to return to a more sustainable fiscal position.   The Finance Minister says it'll save almost $4 billion over four years.   Prime Minister Chris Hipkins told Mike Hosking we're having to pay the economic price...

Job ads listed on Seek have fallen for a fourth consecutive month.   Its July report shows ad numbers fell four percent month-on-month and are just one percent higher than July 2019 - while applications rose 11 percent.   The decline has been driven by weakening demand in manufacturing, transport and logistics, information and communication technology and trades.   Country manager Rob Clark says t...

The Government is trying to cut spending as economists predict it'll need to borrow billions more.   Finance Minister Grant Robertson is cracking down on public contractors and consultants spending, announcing it'll mean savings of almost $4 billion over four years.   Westpac Chief Economist Kelly Eckhold told Mike Hosking the Government is spending $137 billion dollars a year, but this'll help at...

New Zealand Fashion Week is being refreshed after three years away from the catwalk.   Starting today Kiwi designers will have their talent showcased across more than 50 runway shows, talks, and workshops.   Owner Feroz Ali told Kate Hawkesby this time round there's greater opportunity for the public to see work from a more diverse pool of designers.   Ali says there are a lot more indigenous and...

There are fears unemployment could rise as many businesses look to restructure.   Seek's latest report for July shows job ad volumes dropped four percent month-on-month and are 26 percent lower year-on-year.   They're now just one percent higher than in July 2019 - while applications per job have risen by 11 percent - the highest level on record.   Employers and Manufacturers Association Head of S...

National says Grant Robertson can't deliver on the savings he's announced by slashing public contractors and consultants' spending.   The Finance Minister says the move will mean savings of almost $4 billion over the next four years.   He's also announced a trimming back of programmes and a limit on future budget allowances.    National Finance spokesperson Nicola Willis told Kate Hawkesby this wo...

One expert is warning about the dangers of a Trump comeback following his recent arrest. The former president was lined up for a mugshot in Georgia after he surrendered on charges that he illegally schemed to overturn election results. NZME business commentator Fran O'Sullivan says strategic shifts implemented during his administration influence current policy- and New Zealand needs to be alert to...

New research has found rising corporate profits have contributed to over half of current domestic inflation. This information conflicts with earlier reports that increased wages and supply costs were the bigger driving forces behind inflation. Council of Trade Unions economist Craig Renney says research shows that corporate profits have been boosting inflation all over the world- not just New Zeal...