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Shake hands2

Should we give Fair Pay Agreements a fair go?

There is a lot to like about New Zealand’s labour laws. At 80.9%, our labour market participation rate is among the highest in the world. This rate compares extremely well with Australia at 77.4% and the OECD average of only 72.1%. Our unemployment rate is also commendably low. At 4.3%, unemployment in New Zealand undercuts Australia’s 5.2% and the European Union’s laggardly 6.8%. Regardless, the coalition government is eager to re-write our industrial relations rule-book by introducing so-called “Fair Pay Agreements”. Read more

Roger Partridge
Insights Newsletter
15 March, 2019
Ice cream

Death and taxes… and other family matters

Benjamin Franklyn is famously credited with writing “in this world nothing can be said to be certain, except death and taxes”.That may be true, but a cynic might retort that at least death does not get worse every time governments look for extra funding.So it was with trepidation that I read the Tax Working Group’s recently released Future of Tax report.As I chewed through the 200-plus pages of the report, I muttered to myself: “What future?!”. Read more

Dr Patrick Carvalho
Insights Newsletter
8 March, 2019

A missed opportunity on productivity

The jury is out for the released Tax Working Group’s “Future of Tax” Report, with the government promising to deliver its verdict in April.Unfortunately, a careful reading of the 200-page document already shows a missed opportunity to address New Zealand’s biggest elephant in the room: slow productivity growth.Worse, the document’s main recommendation of taxing capital gains will do little – if not work against – to fix our low capital stock levels that drive the productivity problem.To be fair, the... Read more

Dr Patrick Carvalho
Insights Newsletter
1 March, 2019

People struggling to resell concert tickets due to scammers

Reselling concert tickets is now a challenging problem due to scammers. Some people are struggling to sell tickets to Wellington's Eminem concert at the Westpac Stadium. Eric Crampton discusses the issue with Kate Hawkesby on Newstalk ZB and he shares his advice for those hunting around for tickets on the resale market. Read more

Dr Eric Crampton
Early editiion - Newstalk ZB
27 February, 2019

No time is money

As if to squeeze the most out of the short parliamentary term, the Government has been busy with a flurry of initiatives. Such a hurry can be costly. Of all the Government’s decisions, the oil and gas exploration ban was the most surprising. With no prior consultation, it announced the decision in April 2018 to show resolve on climate change. Almost a year later, an NZIER study reveals the staggering costs of this ad hoc decision. Read more

Dr Oliver Hartwich
Insights Newsletter
22 February, 2019
Housing money3

Much pain and little gain of a broad CGT

The Tax Working Group released this week its much-anticipated “Future of Tax” report, which recommends introducing a broad-based taxation of capital gains at full income rates. As proposed, the 33% headline rate would be one of the highest among industrialised economies. And given New Zealand’s recognisably low income tax thresholds by international standards, a new CGT would disproportionally hit middle-income earners already struggling to invest for retirement. Read more

Dr Patrick Carvalho
Insights Newsletter
22 February, 2019

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