This Country was built on the Number Wire mentality of New Zealanders who pulled up their sleeves and got things done. We were a country of doers.

Now we have become a nation whose economy and outcomes have increasingly become dependent on large scale international business dominating our landscape and New Zealand businesses are becoming less and less important and simply a limited part of the supply chain.

Our Great Grand Parents learnt a lesson around hardship, and that was to overcome economic obstacles you had to build, grow and create. We have lost sight of that lesson...

Business tax has to be staggered but not on revenue:

•  24% (tax reduction) for productive businesses defined by that build, create, make something that are NZ owned (excludes property development) so would include farms restaurants where food is primary revenue stream, software development and so on

• 28% for businesses that are NZ owned that are non productive.... Service companies real estate agents etc etc

• 33% for Off shore owned companies... (tax increase)
  NZ owned defined as 51% or more owned by NZ citizens so entices joint ventures for offshore companies 

• 2 yr exclusion for businesses where offshore venture capital used to grow a NZ business.

  This Creates an environment of entrepreneurism in NZ and helps promote a move NZ away from property as a primary investment 

• First two years of a NZ owned "productive" business life is tax free (not deferred - specifically excludes builders and developers or businesses for the sale of property)

• First year tax free for non productive NZ owned business (with the above exclusions)

  Improve the investment boost program

• Any new asset over $40,000 can be depreciated up to 40% in any one year, but can't be used to take a business revenue below zero triggering a tax refund

  Change depreciation rules:

• As above depreciation can not be used to take a business income below zero
  Depreciation Can be used to take tax down to zero but not to trigger tax refunds removes paper money being used to drive additional returns or refunds.

  Labour laws:

• Change to a two strike system as opposed to the current within a 12 month window to make it easier to move poor performers on from a business
  However increase penalties on businesses found trying to use clause for non performance reasons

Tighten laws around restructuring and redundancies to include genuine review and attempts at alternative solutions rather than the lip service happening today

• Minimum 3 month payment redundancy clause

This will mean business will have to genuinely look at alternative options and review the cost and returns of redundancies more closely. It will also mean restructures won't be used in stead of performance management.

Tax...

Here we go, Taxation has to change, We know the definition of stupidity, we can't keep fiddling on the edges, basically doing the same thing and expecting better outcomes.

Structurally we are kind of digging ourselves into a hole right now. If we continue the same way we are, we will have real issues.

• Tax - debt .... At the time someone obtains debt over 100k there is a 5% charge to go to government

Banks already have a mechanism for collecting tax so legislate so that banks/financial institutions can't charge fees for doing so.

• Logic ...debt is used to generate wealth, allow people to make what ever gains they can from what they do with the money. (this means a capital gains tax is gone) but create a fee for the opportunity at the start.

• Benefit is the system is simple, there's no cost of compliance, no valuation costs and issues, and people still get to benefit from the risks they take and the gains they make over time

• The catch... Immediately applied to every source of debt that is live at the start.

Purpose: the Funds are ring fenced for infrastructure investment

the first year would would generate 50 billion straight away which goes straight back into an investment fund, that is managed like super and Acc, to generate long term revenue for Capital projects.

Each year we would generate a minimum of 5 additional billion in funds for capital projects from the annual debt rotation plus the original investment return. This plan gives us better long term sustainability around infrastructure than anything the other parties are offering us.

The big bugger charge:

If you are a business in NZ that benefits from abnormal revenue or reduced competition the government can set a charge for operating in NZ, the fee determined by what value is being pulled out by those industries and those generated funds are used to support the NZ community.

Banks/financial institutions: 3 billion out of your profits

• legislate fee structures so they can't on charge the impact and that they have to maintain their current mix of community funding and sponsorship 

  • The banks aren't going anywhere the mortgage book is to valuable, time to stop rolling over to them.

  • These funds are ring fenced for investment in key areas 

    • Investment into capital for services that support organisations of a national or local significance that support the community (1B)

      • I.e investment into fire engines, ambulances, rescue helicopters, equipment for cancer research etc etc

      • Specialist hospital equipment

  • To support local community programs (1B)

    • with an ability to fund wages of community groups to ensure we resource this sector in the community adequately.

  • Green technology introduction (1B)

    • Targeted to projects that specifically benefit communities.

  • This can be run through the DIA, for recording keeping and distribution, they currently distribute funding from lotto so limited additional cost to deliver and scale.

• Supermarkets: 1 billion from your profits,

  • Targeted specifically into healthcare capital expenditure, same restrictions as above

    • Supermarkets aren't going anywhere, there's to much genuine profit and capital costs

    • We are to small for any major increase in the number of providers, so governments hoping on a wing and prayer that competition will increase is a fools errand.

    • These funds equates to a new hospital every two years

• Electricity and telcos

  • Same deal, but that funding goes for investment into environmental support for local communities, to build environmental resilience. 

Legislate penalties for breaking intent of the law to one years EBITDA... none will breach the risk is too great.

By creating revenue sustainability in infrastructure, Environmental investment, and community funding you reduce pressures on governments operational expenditure allowing for movement in key areas.

By setting real funding for environmental investment we can help farms transition or implement programs that support environmental outcomes, we can invest in stop banks, additional retaining, erosion barriers, we can start discussing managed retreat, we can re open waterways, we can start managing environmental risk and harm proactively as opposed to watching news articles on catastrophes and deaths within NZ. 

Personal tax:

• Top tax rate status moves down to approx 120k (top rate is tagged to the level of twice that of the average salary) rest Stays the same

Kiwi Saver and Super Annuation:

• kiwi Saver is mandatory at 5% and 5% (no bundling for businesses)

  • accepting that equates to an equivalent tax increase of 2% on businesses and people, but we have to genuinely plan for our future and do so properly.

• Retirement age stays the same

  • That's the benefit from actually planning for the future 

• Super is income tested,

  • Everyone will get something but reduces based on any receiving income from other sources (kiwi Saver, investments, trusts etc),

    • This should reduce the super burden by around 30% as a baseline. 

    • If a person has no other income - super is fully funded, down to maybe $100 per week as the main philosophy of the idea.

  • Keep it simple just base off last yes income and people can apply to change if circumstances adjust within the year. 

Property:

• Property investment loses it tax deductibility...

• Suck it up, property is not a productive asset and we have to move towards rebuilding our productive economy 

• Property is a Special class of investment, Property is the only investment where banks will support you to purchase on the current and future value of the investment alone.

Property is not subject to depreciation 

Gst moves to a straight sales tax ...

• Set to be net equivalent.... Won't reduce costs, and wont increase them.

• Logic here is to simplify and remove cost of management... No point giving money and then taking away money, there is a real admin cost to that... this is how we can efficiencies

Community organization maintain tax exemption status

• Except where those organizations operate politically, then they remove that status and become standard businesses.

 Local Government:

• Allow Local Government the choice to switch from a rate system to a tax model. No rates but 3% on the revenue (or sales tax) on both private individuals and business as a move to a more sustainable revenue model for local governments...

  • Removes costly valuation models, zero cost of recovery as tax already has a collection model, a little fiddly to set up but that's what we pay inland revenue for.

Protect the Flow of Money in New Zealand:

• Install an EXIT tax, for every dollar over $100,000 businesses or individuals take out of NZ in a year.

• 15% tax on every dollar over the threshold.

We have to Balance the Budget:

• Sorry military no helicopters I don't care if that upsets trump but we have bigger priorities 

• Sorry greens we are removing ourselves from any and every accord that puts penalties back on NZ, we simply can't afford them....

  • But that doesn't mean we aren't installing policies to drive those outcomes i.e. above funding, but we are not holding a loaded gun to our heads financially

• We set Debt limits per year on Government, and a ceiling as a percentage of GDP

Refocus and integrate an efficiency department 

• The purpose to review each department, not with the idea of reducing budgets but with the mandate to highlight where expenditure isn't effective or efficient.

• Highlight policies where the implementation can be adjusted to remove inefficiencies. 

  • I.e. where we give and then take away money that generates no true outcome with a genuine inefficiency in the process.

• Budget stays with the department but highlights where to reallocate funding to more effective programs or outcomes

• Makes every dollar spent count.

I don't believe in spending money without purpose, and without clear and tangible oversight, where every sent spent matters.

I believe the above is a balanced approach, with practical solutions

There is revenue redistribution without defeating the ability to grow and strive for individual wealth, there is tangible outcomes for those that need (see people tab)the most support, a plan for managing future population change risks, infrastructure need, and a real focus to support Nz productive businesses and build sustainable resilience.