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Dear Supporter,

This week, we found out that the annual inflation rate had barely changed and the quarterly rate is actually on the rise. While the Government has been failing to do its job to control public spending, the Taxpayers' Union has been hard at work campaigning on your behalf. 

NEW POLL: 3 in 5 Kiwis oppose Government’s unemployment insurance proposal

A new Taxpayers’ Union Curia poll released yesterday showed a sharp increase in the number of voters who oppose the Government’s proposed unemployment insurance scheme. 60% of respondents opposed the proposal while only 35% were in support.

The compulsory scheme would see you and your employer pay a levy of 1.39% on your salary in return for receiving six months income at 80% of your old job salary if you become unemployed. This would cost the median earner over $800 extra in tax each year.

This level of opposition just goes to show that New Zealanders can see this ‘levy’ for what it is: A new tax. In the last election, Labour commitment to introduce ‘no new taxes’. The Government should stick to their own pledge and drop this new tax.

Consensus for tax relief grows but bloated spending must reduce to pay for it

Inflation means that you pay a higher share of your income in tax each and every year. This inflation tax is one that neither politicians nor the public voted for. The Taxpayers’ Union has been championing linking income tax brackets to inflation to make sure that your real income is protected.

And there is a growing consensus on this issue. Last week, New Zealand First announced their support for three-yearly income tax indexation—something National has already committed to. ACT has previously said that ‘Tax bracket indexation is a good start’ but would prefer wider tax cuts and reform.

But the lesson from the UK’s soon-to-be-former prime minister Liz Truss is that tax cuts need to be paid for. And they can be. Government spending in New Zealand has spiked in the last few years and the number of public service workers has risen by 28 per cent since just 2017. There is ample scope to make efficiencies and savings.

This week, the Taxpayers’ Union welcomed the backing of more parties for tax relief—but we called on each party to set out exactly how they are going to pay for it.

Wayne Brown calls for Three Waters work to be stopped but other mayors must follow suit

In yet another success for our Stop Three Waters campaign, Auckland’s new mayor, Wayne Brown, announced this week that he has written to Watercare chairwoman, Margaret Devlin, demanding a halt to all work on the Government’s Three Waters scheme in the Super City.

The Taxpayers' Union welcomed this announcement but we have called on other mayors to follow suit. We know that a significant majority of mayors said they were opposed to the project in the election. Now they need to live up to those promises and take the same decisive action as Mayor Brown.

If every mayor in the country who is against the proposals took similar action, Minister Nanaia Mahuta and the Government would have scrap their Three Waters reforms and go back to the drawing board.

We need to see more elected local leaders displaying the courage required to say ‘no’ to Three Waters.

COMPETITION TIME: Design logo for TVNZ/RNZ merger to win $300 and save the taxpayer millions 

As you will know, the Government is intent on creating a new super media company that will merge TVNZ and RNZ. What you may not know is just how much these plans are going to cost.

$370 million of your taxes will be spent to merge TVNZ and RNZ despite both companies only being worth $368 million combined. And they plan to spend $3 million on branding consultancy fees alone.

Today, we launched a competition to design a logo for the new entity. The lucky winner will receive a $300 prize from the Taxpayers’ Union—just 0.01% of the Government’s proposed spend on branding.

We will choose a shortlist of the best designs and then give New Zealanders the chance to vote for their favourite. Once we have a winner, we will provide it to the Government free of charge.

Submit your design here.

This week on Taxpayer Talk with Peter Williams

The latest Taxpayer Talk podcast, hosted by Peter Williams, features Wairarapa farmer and ram breeder Derek Daniell with his take on the proposed farming tax – like most men and women of the land he is vehemently opposed. It’s not just the money that farmers will have to pay that bothers Derek, it’s the cost to local communities and the country’s economy too.

Also in this edition, I took part in the Taxpayer Talk with my Taxpayers' Union board colleague Casey Costello. We discussed the big swing to the right in local body elections and also gave our take on the farmers' emissions tax.

Listen to the episode | Apple | Spotify | Google Podcasts | iHeart Radio

Thank you for your support.

Laurie Kubiak Chair New Zealand Taxpayers’ Union.