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Accounting: Lower Tax Rates Are Here - What You Need to Know
Accounting: Lower Tax Rates Are Here - What You Need to Know

08 February 2025, 12:01 AM

Starting 1 April 2025, New Zealand will implement significant changes to its progressive income tax system, which taxes higher income levels at increased rates.These adjustments aim to simplify the tax structure and provide relief to low- and middle-income earners while maintaining the progressive approach for higher-income brackets.Here is what you need to know about the current and upcoming tax rates, and how they might impact you.Current Tax Rates (Until 31 March 2025)Currently, income tax rates are as follows:$0 – $14,000: 10.5%$14,001 – $15,600: 12.82%$15,601 – $48,000: 17.5%$48,001 – $53,500: 21.64%$53,501 – $70,000: 30%$70,001 – $78,100: 30.99%$78,101 – $180,000: 33%$180,001 and over: 39%These rates apply only to the income within each bracket.The cumulative tax calculations, which help estimate the total tax liability within each bracket, are as follows:$0 – $14,000: 10.5% ($1,470)$14,001 – $15,600: 10.74% ($1,675)$15,601 – $48,000: 15.30% ($7,345)$48,001 – $53,500: 15.95% ($8,535)$53,501 – $70,000: 19.26% ($13,485)$70,001 – $78,100: 20.48% ($15,994)$78,101 – $180,000: 27.57% ($49,621)$180,001 and over: 39% (per extra dollar)E.g. if you earn between $70,001 and $78,100, put 21% of net revenue into your tax bank savings account for income tax.To cover GST, add the 15% on invoices paid to the bank tax savings account.Upcoming Tax Rates (Effective 1 April 2025)$0 – $15,600: 10.5%$15,601 – $53,500: 17.5%$53,501 – $78,100: 30%$78,101 – $180,000: 33%$180,001 and over: 39%Similar to the current system, these rates apply only to income within each bracket.The cumulative tax calculations for the new rates are as follows:$0 – $15,600: 10.5% ($1,638)$15,601 – $53,500: 15.46% ($8,270)$53,501 – $78,100: 20.04% ($15,650)$78,101 – $180,000: 27.38% ($49,277)$180,001 and over: 39% (per extra dollar)Implications and ConsiderationsThese changes reflect the government’s efforts to adapt the tax system to economic conditions and fiscal policy goals.By raising income thresholds for lower tax brackets, more income will be taxed at reduced rates, potentially easing the financial burden on low- and middle-income earners.For higher-income earners, the retention of the 39% rate for income over $180,000 ensures the progressive structure remains intact, requiring those with greater financial capacity to contribute proportionally more.Additionally, the streamlined tax brackets effective from April 2025 may have implications for businesses and individuals, including:Adjustments to withholding tax calculations.Updates to payroll systems.Impact on financial forecasting and provisional tax planning.Practical Tips for Tax ManagementTo ensure you’re prepared for these changes, consider setting up a separate bank tax account to allocate tax and GST payments each month.This approach helps you stay on top of tax obligations and avoid surprises when payments are due.Remember, taxable income is calculated as revenue minus expenses, not just the total of sales invoices.A More Streamlined FutureThe upcoming adjustments to New Zealand’s income tax system represent a significant step towards a more streamlined and progressive structure.Whether you’re a low- or high-income earner, these changes are designed to balance simplicity with fairness, ensuring the tax system continues to support economic growth and fiscal responsibility.Need Help Navigating the Changes?At David Hooper Chartered Accountants, we specialise in helping businesses and individuals adapt to tax changes with ease.From business advice to trust and rental accounts, we ensure you're equipped to thrive under the new tax regime.Contact us today at [email protected] or phone us on 09 421 1635.

NZ Escapes Hottest January on Record
NZ Escapes Hottest January on Record

07 February 2025, 8:45 PM

New Zealand avoided extreme temperatures seen globally for the month of January, but Niwa's principal scientist says that should change in the coming months.Last month was the world's warmest on record, according to the EU's Copernicus Climate Change Service.There was a 1.75 degrees Celsius increase globally, but regional variants meant New Zealand instead had its coldest January since 2017.Chris Brandolino said the reports are the latest in consecutive months of top temperatures, but he doesn't expect New Zealand to be an outlier in the coming months."It looks like temperatures are going to be warm this month," he told Morning Report. "We're back into a warming trend, we're going to have a very warm weekend for much of the country."He said while some regions may escape the heat, he would be "very surprised that was duplicated again February, March and April" for most of New Zealand.Brandolino said the global trend is concerning, and that 2023's record year was only beaten by 2024's temperatures.He said scientists are puzzled by the data as La Nina was expected to bring cooler temperatures, as El Nino is the climate driver."We have La Nina, which we have now in the Central Equatorial Pacific, those are cooler than usual ocean temperatures and that tends to have flow-in affects to the global air temperatures and it does favour or tilt the odds toward cooler air temperatures globally," he said."But that hasn't happened, that is a bit of a head scratcher."Brandolino said there are theories to the unexpected temperatures, such as the impact of the efforts to cut pollution by limiting sulphate.As sulphate acts to reflect the energy and light from the sun, with it less sulphate, the energy can make its way back into the atmosphere, he said.He said we have to reduce greenhouse gases "but unfortunately that's not happening at a pace that it needs to happen".

Work-From-Home Rates Remain High in NZ
Work-From-Home Rates Remain High in NZ

07 February 2025, 7:00 PM

Coasties, the work-from-home (WFH) trend that surged during the COVID-19 pandemic remains strong in New Zealand, with nearly 9% of job listings still advertising remote or hybrid options.This is a significant increase from just 1.3% in early 2020, according to SEEK’s latest data.Although slightly lower than its September 2023 peak of 10.3%, the WFH rate in December 2023 stood at 8.9%.This figure suggests that flexible work arrangements remain a key feature of New Zealand’s job market, even as labour conditions shift.WFH remains far more prevalent in white collar industries. Insurance & Superannuation leads the way, with around a third of job ads allowing remote work.The ICT and Banking & Financial Services sectors follow closely, with approximately a quarter of job listings offering WFH options.In contrast, industries requiring in-person work—such as Trades & Services, Hospitality & Tourism, and Retail—have seen little to no increase in remote work opportunities.SEEK data indicates that WFH rates in these sectors remain close to pre-pandemic levels, with roles such as paramedics, nurses, and kitchen hands offering no remote work flexibility.The ability to work remotely is also unevenly distributed across the country.Wellington has the highest WFH rate at 13.4%, followed by Auckland at 11.5%.In contrast, Marlborough has the lowest rate at 3.3%, reflecting regional differences in industry composition and employment patterns.Labour market trends remain in flux, and the future of remote work is still being shaped by employer and employee preferences.While many workers value flexible work options, some businesses are reconsidering WFH arrangements, either reducing the number of remote days for hybrid employees or eliminating remote work altogether.The balance between employer expectations and worker demand will likely continue evolving throughout 2024.Although a temporary decline in WFH rates is possible, experts suggest that long-term trends may stabilise at a higher level than pre-pandemic norms.Have a News story to share?Contact [email protected]

Kiwis Encouraged to Fire Up the Grill for National Lamb Day
Kiwis Encouraged to Fire Up the Grill for National Lamb Day

07 February 2025, 1:15 AM

Coasties are invited to gather friends and family on Saturday, 15 February, to fire up the barbecue and celebrate National Lamb Day. The annual event pays tribute to New Zealand’s proud agricultural heritage and the hard work of local farmers and food producers.To encourage participation, organisers are offering a chance to win one of five lamb BBQ boxes, each valued at $200. Those who register their barbecue at nationallambday.co.nz will automatically go in the draw.A Celebration of HeritageNational Lamb Day commemorates New Zealand’s first frozen lamb shipment in 1882, a milestone that helped establish the country’s reputation as a world-class meat producer. The event serves as a reminder of the farming industry’s contribution to the economy and local communities.Jon Pemberton, chair of the National Lamb Day committee, expressed excitement about this year’s celebration.“We’ve been working hard on the 2025 event, and it’s fantastic to see everything coming together—starting with a special barbecue at Parliament next Tuesday, attended by MPs from across the political spectrum as well as several agricultural industry leaders,” he said.Rabobank, a principal partner of the event, is also hosting a barbecue at Parliament to bring awareness to the industry’s significance. Rabobank CEO Todd Charteris welcomed the opportunity to take part.“It’s great to see our nation’s leaders getting behind National Lamb Day and recognising the hard work of those behind our world-class lamb production. I’ll be joining in and helping with cooking the barbecue myself!”FMG Chief Marketing Officer Pete Frizzell shared a similar sentiment, highlighting the event’s ability to unite the country.“Our connection to National Lamb Day is about supporting rural communities while bringing the whole country together to celebrate,” he said.How Coasties Can Get InvolvedLooking for great lamb recipes? Click hereFor more details or to enter, visit nationallambday.co.nzWith summer still in full swing, locals are encouraged to gather around the barbecue and throw some New Zealand lamb on the grill. Whether hosting a backyard cook-up or a beachside feast, Coasties can register their barbecue online to take part in the celebration and go in the draw for the lamb prize packs.Have a News story to share?Contact [email protected]

Waiheke housing: New rules for digital nomads could push us out - residents
Waiheke housing: New rules for digital nomads could push us out - residents

06 February 2025, 7:14 PM

Some Waiheke residents are worried 'digital nomads' could invade their island paradise under the government's new rules.One advocate said the island was already facing a housing crisis, and wealthy visitors could force locals out of a dwindling supply of rentals."The housing situation on Waiheke is pretty dire, so we have the most upside down income to rent ratio in the country, even worse than Queenstown," Waiheke Community Housing Trust general manager Damian Sycamore said."There's approximately 6000 dwellings on Waiheke, and over 1000 [bed and breakfasts], so that's almost 20 percent."Last week, the government announced new rules for visitors allowing them to work remotely for a foreign employer for up to nine months.So-called digital nomads had been growing in number since 2020, high-wage workers discovering they could mix business and pleasure.Sycamore feared inviting these nomads to Waiheke would be disastrous for the island's fragile housing market."What we do know is that there's approximately 30 to 60 million digital nomads currently in the world," he said."We know they have stacks of cash and get paid big bickies whilst they're travelling internationally, but they will be able to outbid Waiheke's low incomes for a dwindling pool of houses that are available to rent."Waiheke Local Board deputy chairwoman Kylee Matthews said it was a fear shared by many residents."There's a lot of people that are already concerned on our Facebook page, our community notice board, where they just say 'here we go again, long-term residents are going to get pushed out by short-term nomads'," Matthews said."Also a lot of younger families that usually rent on the island, they're already looking elsewhere."CoreLogic senior property economist Kelvin Davidson did not think the new rules would leave much of a mark on New Zealand's overall property market, but he said digital nomads could make bigger waves in high-demand areas, like Waiheke Island."There's always going to be some local impacts. ...Your inner city apartments - it might produce a bit of marginal extra demand for that type of property," he said."There'll be locations as well where there is a bit of marginal extra demand: ...I suspect Waiheke Island would be on that list. You could probably have areas like Queenstown, all of the sort of usual suspects."Many properties on Waiheke Island doubled as bed and breakfasts during peak summer months. For the rest of the year they were medium-term rentals, with locals only having access for about six months at a time.Waiheke Homes real estate firm co-owner Paul Brisbane said that had made renting a challenge for many residents."There are people who are finding it tough to get rental property on Waiheke for that kind of period," he said."They're taking shorter terms because they just can't find anything for longer. So if they've now got a whole new class of visitor who is able to take something for that amount of time, then I guess there is going to be more demand."The Housing Trust's Damian Sycamore was worried an influx of digital nomads could make that model more popular."Island residents and locals, they don't want to just exist in a space for less than a year. They want to build a home," he said."They want to go to those schools. They want to build a place in the community. And a house cannot be [both] a home and a place for short-term rentals."He said it remained to be seen just how much of a difference the new rules made, but it was yet another reason to be worried for Waiheke's future.

New Zealand’s Role in Ethical AI Development
New Zealand’s Role in Ethical AI Development

06 February 2025, 6:29 PM

New Zealand has the potential to lead in ethical artificial intelligence (AI) governance, according to Dulani Jayasuriya, a senior lecturer at the University of Auckland Business School. In a recent opinion piece, she argues that while major global players like the United States and China compete for AI dominance, New Zealand is well-positioned to take a different approach—one focused on fairness, transparency, and efficiency.Jayasuriya highlights New Zealand’s 2024 AI Bill as a crucial step towards responsible AI development. The bill aims to regulate risks such as bias, misinformation, and job displacement, particularly in industries like healthcare, tourism, and small businesses. She suggests that by establishing strong AI regulations early, New Zealand could play a role similar to its leadership in environmental policy, influencing global standards for ethical AI use.In her analysis, Jayasuriya also discusses the rise of China’s DeepSeek, a Hangzhou-based AI company that has disrupted the market with low-cost, high-performing models. She notes that DeepSeek’s flagship model, DeepSeek-R1, was developed for approximately NZD 10 million—a fraction of the estimated NZD 170 million required to train OpenAI’s GPT-4. Dulani Jayasuriya, senior lecturer, University of Auckland Business School.Because DeepSeek’s models are open-source, they offer opportunities for businesses and researchers worldwide to build upon them.For New Zealand businesses, particularly in agriculture, logistics, and tourism, Jayasuriya sees these affordable AI solutions as an opportunity. AI-driven chatbots, she suggests, could enhance real-time assistance for tourists, while AI-powered automation in farming could improve crop management tailored to local conditions. By leveraging DeepSeek’s innovations alongside homegrown expertise, New Zealand could develop AI tools uniquely suited to its needs.Jayasuriya also addresses concerns about AI’s impact on employment. Citing a 2023 Goldman Sachs report, she notes that up to 300 million jobs could be affected by AI by 2035. In Australia, customer service and administrative roles are already being reduced, while new positions—such as AI ethics officers and data curators—are emerging. She argues that New Zealand’s focus on AI regulation and skills development could help businesses and workers adapt to these changes more effectively.As AI development accelerates, Jayasuriya concludes that the countries investing in strong governance, infrastructure, and ethical frameworks will shape its future. She suggests that by prioritising responsible AI adoption, New Zealand could not only benefit its own economy but also influence global AI standards.Have a News story to share?Contact [email protected]

Nominations Open for Iconic Auckland Eats
Nominations Open for Iconic Auckland Eats

05 February 2025, 9:00 PM

Food-loving locals on the Hibiscus Coast have the chance to celebrate their favourite meals, with nominations now open for Iconic Auckland Eats 2025The annual event, now in its fifth year, highlights Auckland’s top 100 eats as voted by the public.Last year, over 1,800 dishes were nominated, showcasing the city’s diverse and vibrant food culture. This year, Aucklanders have until 5 March to submit their favourite meal or snack, along with a short note on why it holds a special place in their hearts.To encourage participation, five lucky nominators will each win $500 in vouchers to spend at one of the selected Iconic Auckland Eats top 100 food businesses.The initiative is organised by Tātaki Auckland Unlimited, in partnership with Restaurant Hub, New Zealand’s largest online restaurant booking network. The campaign aims to support Auckland’s hospitality sector by spotlighting standout eateries, from food trucks and bakeries to fine-dining restaurants.Karen Thompson-Smith, Head of Tourism at Tātaki Auckland Unlimited, says the event has become a much-loved tradition for both locals and visitors.“Nothing brings people together like food – whether it’s an old favourite or a new and exciting dish – and Auckland has some of the best food in the world. Iconic Auckland Eats is the perfect way for locals and visitors alike to spread the word by nominating the dishes they love the most in Tāmaki Makaurau.”The final top 100 list will highlight not only delicious meals but also the unique stories, people, and cultural heritage behind them. Two long-standing favourites—Depot’s Fish Sliders and the Strawberry Lamington from Sugar at Chelsea Bay—have been on the list since the event’s inception in 2020.A panel of judges, including Annie Dundas, Destination Director at Tātaki Auckland Unlimited, and Mark Gregory, co-owner of Restaurant Hub, will help curate the list. A guest judge is yet to be announced.The hospitality industry plays a significant role in New Zealand’s economy, with the restaurant and café sector contributing $7.8 billion in the year ending March 2024. For locals eager to showcase the Hibiscus Coast’s best dishes, this is a chance to help put favourite eateries on the Auckland-wide map. Nominations can be submitted at aucklandnz.com/iconic-eats until 4 pm on 5 March 2025.Have a News story to share?Contact [email protected]

Over 21,000 Lifejackets Recalled Nationwide
Over 21,000 Lifejackets Recalled Nationwide

05 February 2025, 6:00 PM

Coasties heading out on the water are urged to check their lifejackets, as over 21,000 units have been recalled due to a potentially faulty inflator mechanism. The Ministry of Business, Innovation and Employment (MBIE) and Maritime New Zealand are advising boaters to ensure their lifejackets function correctly to avoid safety risks.The affected lifejackets, fitted with a Halkey-Roberts inflator mechanism, include the Hutchwilco Classic 170N Manual Inflatable Lifejacket and Hutchwilco Super Comfort 170N Manual Inflatable Lifejacket, manufactured between June 2021 and May 2022.MBIE spokesperson Ian Caplin emphasised the importance of checking for faults before heading out.“Our Product Safety team know the summer period means plenty of New Zealanders are out on the water or heading to the beach. We want to make sure this fault doesn’t cause any preventable accidents,” said Caplin. This voluntary recall is a precautionary measure to prevent potential failures where the lifejacket may not inflate as expected. Notices have been issued on the Product Safety website, and those who own these models are encouraged to act promptly.Maritime New Zealand spokesperson Matt Wood stressed the importance of regularly inspecting all safety gear, not just the affected models.“Just like all safety equipment, lifejackets have a lifespan and can become worn out over time,” said Wood. “Everyone needs to ensure their lifejackets will work if needed. Some simple tests include checking for any visible damage, looking for tears, cuts or punctures. It’s also important to check that the webbing, clips and zips are all in good working order.”Those with an affected lifejacket are advised to visit Hutchwilco’s website to complete a recall form. The company offers either a replacement inflator mechanism or a refund.Boaters are also encouraged to familiarise themselves with lifejacket maintenance and safety checks by visiting the Maritime New Zealand website. Taking a few moments to inspect equipment before heading out could be lifesaving.Have a News story to share?Contact [email protected]

Police Continue Investigation Into North Shore Stabbing
Police Continue Investigation Into North Shore Stabbing

05 February 2025, 12:00 AM

An investigation is ongoing following a stabbing incident in Birkenhead on Tuesday afternoon, leaving a man in hospital with multiple wounds.Police confirmed the attack took place outside an address on Birkenhead Avenue at approximately 2 pm. North Shore Area Commander Inspector Stefan Sagar said the victim underwent surgery at Auckland City Hospital and remains in a serious but stable condition.“The victim is now in a serious but stable condition in hospital, and we will be looking to speak with him in the coming days as we continue our enquiries,” said Inspector Sagar.Authorities are maintaining a visible presence in the area as part of their investigation. Officers will continue canvassing the neighbourhood today, seeking further details from the community.“From what we have established so far in our enquiries, we do not believe this is a random incident,” Inspector Sagar stated.Police are also investigating a vehicle seen leaving the area around the time of the incident.However, no further details about the vehicle are available at this stage.Community support has played a key role in the investigation, with residents providing valuable information.“We have had good support from the neighbourhood, and this information is assisting us in progressing the investigation,” Inspector Sagar said.“I know when these events take place in our communities that this can be unsettling, but we believe it is an isolated event and Police are continuing to work hard to identify and hold this offender to account.”Police are appealing for further assistance from the public. Anyone with information can contact Police online or by calling 105, quoting reference number 250204/5489. Anonymous tips can also be provided through Crime Stoppers at 0800 555 111.Have a News story to share?Contact [email protected]

Motorists Urged to Drive Safely for Waitangi
Motorists Urged to Drive Safely for Waitangi

04 February 2025, 10:29 PM

As Waitangi Day approaches, Northland Police are reminding motorists to prioritise safety on the roads.In preparation for Thursday, 6 February, police have been actively engaging with the community to ensure drivers remain vigilant and responsible.Northland Road Policing Manager, Inspector Anne-Marie Fitchett, has emphasised that drivers can expect to encounter patrols at any time, as part of the efforts to deter risky behaviour."There are no excuses for any unsafe behaviours on our roads. We want everyone to enjoy the Waitangi celebrations while considering their own safety—and that of others," she said. "Speeding won’t be tolerated, and any excess speeds will be ticketed as required."Inspector Fitchett added that drivers should also be prepared for random impairment tests during the period."The community can expect to be stopped and tested for impairment at any time. Nobody wants to share the road with someone who is unable to focus clearly."In addition to increased enforcement, several road closures are already in place in the area, including:Te Karuwha Parade, corner of Puketona Road, SH11 to Tau Henare DriveTe Kemara Road, former of Puketona Road, SH11 to Te Karuwha ParadeTau Henare Drive, intersection of Baylys Road and Haruru Falls RoadHaruru Falls Road, off Puketona Road, SH11Motorists are also being reminded to be considerate of parking arrangements and allow extra time for possible roadworks or detours along their route."We simply want everyone to drive with care, stay patient in the event there are roadworks or detours along your journey, and keep alert on our roads," said Fitchett.For more information on getting to Waitangi and parking details, visit the FNDC website.Have a News story to share?Contact [email protected]

Unemployment forecast to hit four-year high, with rise to 5.1%
Unemployment forecast to hit four-year high, with rise to 5.1%

04 February 2025, 6:46 PM

Unemployment is expected to reach a four-year high in official numbers confirming the recession has caught up with the jobs market and also slowed wage growth.Consensus economist forecasts are for the unemployment rate to rise to 5.1 percent in the three months ended December from 4.8 percent in the previous quarter.ANZ economist Henry Russell said the labour market was a lagging indicator of the economy."While the New Zealand economy appears to have bottomed out and is now recovering, the labour market is still playing catch-up to the past slowdown in activity."The second half of last year saw loss of many hundreds of jobs in government restructuring and industrial layoffs, with estimates the economy has shed as many as 30,000 jobs in the past year, while the number of jobs advertised has been more than 20 percent lower than a year ago.Given upOne factor that has likely limited a bigger rise in unemployment has been people giving up looking for work."Much of the current cycle in employment has been driven by young people, who were drawn into the workforce in 2021-22 when the labour market was tight and migrant workers weren't available," Westpac senior economist Michael Gordon said."As those conditions have reversed, many of them are ending up back at school rather than continuing to look for work. The result is that the official unemployment rate has risen at a slower pace than many of us (including the RBNZ) were expecting."He said that along with slower growth in the size of the workforce and lower immigration would help put a cap on unemployment, which had previously been forecast to reach at least 5.5 percent.However, recovery in the jobs market is expected to be slow until lower interest rates filter through to better household spending, and increased business activity and sales, although the mood has improved according to Westpac McDermott-Miller's latest survey.Slow wages to content RBNZMeanwhile, a weaker labour market with more people chasing fewer jobs has put the brakes on the rise in wages.During the pandemic a desperate need for workers fuelled strong wage growth, which, by some measures, was more than 7 percent annually.ASB senior economist Mark Smith said all that had changed."Employees are just trying to hang on to their jobs and the security of having a job is trumping the pay increases they would be getting and lower inflation means consumers are asking for less compensation."The consensus is for annual wage growth of around 3 percent.Smith said that should satisfy the Reserve Bank's desire to see lower wages as a driver of slower domestic inflation, thus justifying a further 50 basis point cut to the official cash rate to 3.75 percent on 19 February.

Donald Trump's tariff trade war could spell trouble for NZ, experts say
Donald Trump's tariff trade war could spell trouble for NZ, experts say

03 February 2025, 10:00 PM

US President Donald Trump has introduced 25 percent tariffs on Mexico and Canada, and a 10 percent tariff on China - claiming they're meant to stop drugs and undocumented immigrants.Sense Partners economist John Ballingall told Morning Report's Corin Dann the move could spark a potential retaliatory trade war between the nations, spelling bad news for New Zealand exports."The larger concern for New Zealand is that Trump's actions here lead to retaliation, which we're already seeing from Canada, Mexico and China, and that that blows up into a full-blown trade war."When that happens, you'll see global GDP growth go down, and that means lower demand for all of the things that New Zealand exports."He acknowledged there are possible upsides in the short term.As dairy products going into Canada become more expensive.This could potentially open up new opportunities for New Zealand."I don't want to paint this as something which is great for New Zealand. The medium-term and longer-term consequences are pretty worrying."Especially, he said, if the scope of Trump's tariff tactics widens to include Europe."Europe's already talking about how it might retaliate. We know the EU does this pretty effectively. It's got a list of products that it would counter-punch with."So again, it's not hard to see this skill heading relatively quickly into something much more concerning to New Zealand."But while the actions of the US President have incensed those who believe the measures violate the rules-based system of fair trade, New Zealand is unlikely is join the choir."I think, to date, we've been very measured in terms of any political statements around President Trump's actions."I think that is probably going to be the way that we continue to go. There isn't a huge amount to be gained by jumping up and down and criticizing the US."Now that may sound like we're being a bit weak, but I think we have to be pragmatic. New Zealand making a song and dance isn't going to change President Trump's mind about tariffs, so perhaps we're better off taking the diplomatic route, trying to talk to people in this administration, position New Zealand as a partner."Trump should be told 'allies are not lackeys'But, Otago University international relations professor Robert Patman says New Zealand and other liberal democracies should make their opposition to the tariffs loud and clear."We always see ourselves as a good international citizen. Well, we actually need to walk the talk," he said."And that means to say we need to make it quite clear, along with Australia and other liberal democracies that Mr Trump's attempts to single out traditional allies of the United States for this sort of top-down pressure is unacceptable. Allies are not lackeys," he said.Patman said Trump's "America First" approach to alliances and international institutions implies that other parties involved in the alliances took second place."I do think it is important that the United States is left under no illusions that everyone is going to quake in their boots and fold in front of them under Mr Trump."Noting that New Zealand did have an ongoing trade dispute with Canada over dairy quotas under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he said the relationship was strong.US tariffs won't affect profits says Fisher & PaykelAlthough Fisher & Paykel Healthcare said US tariffs will increase the cost of the goods it makes in Mexico that isn't expected to have a material impact on this year's net profit.The company manufactures about 45 percent of its products in Mexico and 55 percent in New Zealand, said managing director Lewis Gradon.About 60 percent of its products sold in the US are made in Mexico, with US-based customers generating about 43 percent of its first-half-year revenue.Gradon said they're taking a long-term view, working with global suppliers and US customers to mitigate the impact of the US tariffs.'In a wait and see period'Executive director at ExportNZ, Joshua Tan, said while the change brings possible risks and opportunities, right now exporters are "in a wait and see period given that the Trump administration hasn't actually announced anything on New Zealand.""There could be an opportunity for New Zealand to replace Canadian, Mexican, and Chinese goods in the US market and for our products to replace US products in those markets."The great thing is New Zealand has free trade agreements with all three.""We're pretty confident our exporters can adjust to global changes... but it's pretty hard to break down at this point."

Cost of Living Rises 3.0% in 2024
Cost of Living Rises 3.0% in 2024

03 February 2025, 6:45 PM

Households across the country continue to feel the pressure of rising living costs, with new figures from Stats NZ showing a 3.0 percent increase in the 12 months to December 2024.This follows a 3.8 percent rise in the September 2024 quarter, highlighting persistent financial strain on families.The Household Living-Costs Price Indexes (HLPIs), which measure inflation's impact on different household groups, indicate that key contributors to the increase include insurance, property rates, and rent.Meanwhile, consumer inflation, measured by the Consumer Price Index (CPI), rose 2.2 percent in the same period."For many households, interest payments on mortgages remain high and continue to contribute significantly to living costs," said Stats NZ prices and deflators spokesperson Nicola Growden.Interest payments have surged 104 percent since December 2021.However, the pace of increase has slowed, with a 7.1 percent rise in the past year.Other expenses, such as building new homes, climbed 2.0 percent.Superannuitants on the Hibiscus Coast may feel the strain more acutely, with their living costs up 3.6 percent.Many in this group own their homes but face rising insurance and property rates, which increased 15.8 percent and 12.4 percent, respectively.Beneficiary households saw a 3.3 percent cost increase, largely due to rent rising 4.5 percent and property rates increasing 12.1 percent.Rent remains a significant portion of their expenses, accounting for 29 percent of their household budgets.For the lowest-spending households, living costs rose 3.9 percent, the highest increase across all groups.Meanwhile, the highest-spending households saw the lowest cost rise at 2.7 percent, mainly due to interest payments, insurance, and property rates.Though inflation has cooled compared to previous years, ongoing increases in core expenses continue to challenge Coasties, particularly those on fixed incomes or renting.Have a News story to share?Contact [email protected]

Sellers Drive Property Market Surge in 2025
Sellers Drive Property Market Surge in 2025

02 February 2025, 10:59 PM

New Zealand’s property market kicked off 2025 with a surge in new listings, reaching levels not seen in nearly a decade, according to realestate.co.nz. After a record-low December, January saw nearly 9,000 new listings, marking a 21.2% increase year-on-year.The influx of properties is providing buyers with more choice while increasing competition among sellers. Stock levels are also at their highest January levels since 2015, creating a market environment with relative price stability.Stock Levels at a 10-Year HighStock levels nationwide climbed 18.9% compared to January 2024, with all 19 regions experiencing an increase. Auckland led the surge, recording 11,465 properties available for sale—the highest January level since 2012.“We haven’t seen this level of housing stock in Auckland for more than a decade,” said Sarah Wood, CEO of realestate.co.nz. “There could be a window of opportunity for those looking for property in the region.”The increase in stock levels indicates a more balanced market, with buyers benefiting from greater selection while sellers navigate a more competitive environment.Prices Hold Steady Despite Market ShiftsWhile new listings and stock levels surged, property prices remained relatively stable. The national average asking price in January was $868,969, a slight 1.3% decline from the previous year.Regional trends varied, with Coromandel experiencing the largest drop, down 20.3% year-on-year to $1,004,312. Conversely, the West Coast saw a 6.3% price increase, reaching $505,151. Four regions—Auckland, Hawke’s Bay, Nelson & Bays, and Southland—saw prices rise both month-on-month and year-on-year.Opportunities in a Changing MarketWith interest rates easing and a high volume of properties available, market conditions are providing both buyers and sellers with new opportunities.“Lots of choice, combined with relative price stability, offers certainty for both buyers and sellers,” said Wood. “And as interest rates decline, the market may become more appealing for those on the sidelines.”Despite the strong start to the year, high stock levels mean a rapid rebound in prices is unlikely. However, Wood noted that real estate markets are cyclical, and shifts are expected over time.Have a News story to share?Contact [email protected]

Penlink Progress Continues in Whangaparāoa
Penlink Progress Continues in Whangaparāoa

02 February 2025, 8:30 PM

Whangaparāoa locals will notice continued progress on the Penlink project, with significant road and bridge construction developments. The project team has completed the majority of bulk earthworks between the Wēiti River and Whangaparāoa Road, marking an important step forward in the region's transport infrastructure.Since mid-2024, work has focused on relocating and installing underground services to support the next construction phase. These installations are necessary as the team moves forward with building the main alignment for the future Whangaparāoa intersection.A major traffic change is set for March, with a long-term temporary closure planned for the Cedar Terrace intersection. The closure is expected to last at least 12 months, requiring all Cedar Terrace traffic to detour via Scott and Norfolk Roads. Temporary steel roadside safety barriers will also be installed along Whangaparāoa Road near the work site to create a safe working space while maintaining two lanes of traffic.Wēiti River Channel Reopens Following Concrete PourConstruction crews recently completed a large concrete pour for the Pier 4 piles, allowing the reopening of the Wēiti River channel. While vessels can now navigate past the worksite, restrictions remain in place. Boaters travelling upstream must pass through a controlled navigable gap between the eastern and western sections of the temporary platform.For safety reasons, the channel will be intermittently closed during construction hours when heavy loads are being lifted over the navigable gap. During these periods, vessels must follow instructions from the project team, who can be contacted via VHF CH73 or 0800 PENLINK. Safety vessels and hand signals will be used to manage movement and ensure safe passage.As construction progresses, locals and road users are encouraged to stay updated on detours and roadworks. The Penlink team remains committed to maintaining safety while advancing this critical transport project.Have a News story to share?Contact [email protected]

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