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Responding to reports that Auckland Council has secured a formal commitment to consider a bed tax, New Zealand Taxpayers’ Union spokesman Josh Van Veen said:
“The Government should categorically rule out slapping Kiwis with yet another tax during the worst cost-of-living crisis in recent memory. Families and businesses are already stretched to breaking point. The last thing they need is another tax grab.
“Make no mistake: a ‘bed tax’ won’t just hit tourists. It will land squarely on the shoulders of New Zealanders travelling domestically for work, family, or holidays.
“Previous research by Tourism Industry Aotearoa found that only 30 percent of international visitors stay in commercial accommodation, meaning the majority of this tax would be paid by Kiwis, not tourists.
“If councils are so desperate to attract concerts and sporting events, they should start by reprioritising their bloated spending rather than reaching into taxpayers’ pockets yet again.”
The Taxpayers’ Union says today’s release of the COVID-19 Royal Commission report confirms that ministers made some of the most significant decisions in modern New Zealand history while ignoring official advice.
Taxpayers’ Union spokesperson Tory Relf says the report raises serious questions about accountability.
“New Zealanders were repeatedly told the Government was ‘following the science’. The Royal Commission report shows that wasn’t always the case.”
“We now know that ministers kept Auckland in lockdown longer than officials advised and maintained vaccine mandates for teenagers despite safety warning against two-dose requirements.”
“These were extraordinary decisions that cost taxpayers $66 billion and imposed some of the harshest restrictions anywhere in the developed world.”
“When politicians override the advice they’re given, they must explain why. So far, that accountability has been missing. Former COVID Response Minister Chris Hipkins declined to appear publicly before the Royal Commission. New Zealanders deserve answers about why key advice was ignored.”
“When governments exercise extraordinary powers over people’s lives and spend tens of billions of taxpayer dollars, the public has every right to demand accountability.”
The Taxpayers' Union is correcting David Seymour's reported comments that a temporary cut to fuel tax - as called for by the Taxpayers' Union - would necessarily widen the deficit and result in more borrowing.
"With the greatest respect to David, the Taxpayers' Union is not calling for unfunded tax relief," said Taxpayers' Union Executive Director Jordan Williams.
"What we called for was scrapping the successor to the wasteful 'Provincial Growth Fund' and for those funds to be redirected into the National Land Transport Fund. That would deliver temporary tax relief at the pump without it affecting the deficit, or reducing investment in transport infrastructure.”
“Currently, taxes and levies make up more than 44 percent of the price you pay at the pump. But the only true tax cut is to reduce spending. The Regional Infrastructure Fund has proven wasteful with grants for things such as $10 million to a Bay of Plenty Marae. It is precisely the sort of low priority spending that should be scrapped."
|
Tax / Levy Component |
Rate / Calculation |
Amount (cents/litre) |
|
GST (Goods and Services Tax) |
15% of total retail price |
39.13 |
|
National Land Transport Fund |
Fixed levy |
70.02 |
|
ACC Levy |
Fixed levy |
6 |
|
Additional Specific Tax |
National weighted average |
2 |
|
Petroleum Engine Fuels Monitoring Levy |
Fixed levy |
0.69 |
|
Local Authorities Petroleum Tax |
Fixed levy |
0.66 |
|
ETS (est) |
Variable |
14 |
|
Total Tax per Litre |
|
132.5 |
The New Zealand Taxpayers’ Union is calling on the Government to temporarily cut fuel taxes as global tensions in the Middle East drive oil prices higher and push petrol prices above $3 per litre in many parts of the country.
Taxpayers’ Union spokesman Jordan Williams says households should not be forced to shoulder the full cost of global instability.
“Petrol prices are surging past $3 a litre in many parts of the country. At a time when households are already struggling with the cost of living, the Government needs to wear some of the burden rather than lumping it all on motorists.”
“Kiwis can’t control wars overseas, but the Government controls how much tax we pay at the pump. When petrol hits three dollars a litre, it’s working families and small businesses that feel it first.”
Williams says a temporary reduction in fuel excise would provide immediate relief.
“Reducing fuel tax is a proven way to support households when global fuel prices spike. In 2022, Jacinda Ardern’s Government cut fuel excise by 25 cents per litre to ease the cost-of-living crisis caused by soaring oil prices following Russia’s invasion of Ukraine.”
“A similar three-month reduction today would cost roughly $350 million in foregone revenue to the National Land Transport Fund, the same order of magnitude as the 2022 policy.”
Williams says the relief could easily be funded by reprioritising wasteful spending.
“With billions of dollars being funnelled through schemes like the Regional Infrastructure Fund — which is fast looking like a Provincial Growth Fund 2.0 — the Government has plenty of room to fund temporary relief for motorists.”
“Redirecting wasteful spending into the National Land Transport Fund would allow the Government to provide fuel tax relief while still maintaining investment in transport infrastructure.”
“Global oil shocks shouldn’t become an excuse for the Government to collect windfall tax revenue. When fuel prices spike, taxpayers deserve relief.”
Responding to Treasury figures showing the Government’s deficit is slightly smaller than forecast, Taxpayers’ Union spokesperson Tory Relf said:
“These figures are genuinely encouraging for taxpayers, especially young New Zealanders who will inherit this debt.”
“But let’s be clear, better than expected is not the same as balanced. The deficit for the seven months to January is still $6 billion, nearly $3,000 per household. Deficits remain, debt and spending are both still too high, and structural pressures persist. The Government cannot rely on temporary tweaks or lucky timing to claim progress - especially given the potential for economic pressures with conflict in the Middle East.”
“Budget 2026 is the real test. Ministers must use this momentum to lock in serious fiscal discipline, slash wasteful spending, and implement real structural savings. They need to show taxpayers a credible plan to reduce deficits and debt, not just optics.”
“If they fail, today’s small improvements will mean nothing, and ordinary New Zealanders will still be left footing the bill for years to come. The pressure is on: Budget 2026 must deliver.”
The Taxpayers’ Union is slamming the Government for using borrowed money to help bankroll an Australian sporting event, after this morning’s announcement that State of Origin will be coming to Auckland thanks to an A$5 million Government bid.
Taxpayers’ Union spokesperson Tory Relf says:
“Only days after preaching fiscal restraint at the NZ Economic Forum, the Government has apparently decided that announcing the borrowing of millions to subsidise an Australian rugby league spectacle is a better priority than fixing the basics here at home.”
“The real scandal here isn’t State of Origin, it’s the fact the Government is running a Major Events Fund fuelled by borrowed money while claiming it’s serious about restraint. If the Government genuinely believes these events stack up commercially, then the private sector can fund them”
“We thought this Government was serious about saving money, but clearly those principles have been thrown straight out the door in a desperate bid to look fun and flashy in an election year.”
“Kiwi taxpayers shouldn’t be footing the bill so Ministers can pose with rugby balls and high-five their mates at the stadium.”
Amid reports that Prime Minister Christopher Luxon has given into pressure from Auckland Mayor Wayne Brown and agreed to consider a bed tax, Taxpayers’ Union spokesperson Tory Relf said:
“Who is running this government, the Prime Minister or Wayne Brown? A fortnight ago, Brown bullied Luxon into excluding Auckland stormwater from the Government’s rates cap. Now he’s been bullied into yet another tax."
“The so-called bed tax will be disastrous for many small accommodation providers while providing a slush fund that local politicians like Wayne Brown can dip into when they run out of ratepayer money."
“In his address to LGNZ in 2024, Luxon said he was committed to getting local government back to basics. He forgot to mention that Auckland is exempt.”
The New Zealand Taxpayers’ Union can reveal through an Official Information Act request that Inland Revenue spent $1.967 million on an outbound phone call campaign to encourage taxpayers to adopt two-factor authentication for their myIR accounts.
Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:
“Too often government departments splash out on marketing campaigns while forgetting it’s taxpayers’ money they’re spending.”
“Inland Revenue is right to strengthen its data security, but spending nearly $2 million on phone calls and staff time raises serious questions for those footing the bill.”
“Even staff questioned whether the campaign was a success, with many recipients dismissing the calls as potential scams. When fraud-prevention calls are mistaken for fraud, something has clearly gone wrong.”
“With two-factor authentication now compulsory anyway, wouldn’t a simple pop-up on IRD’s website and a direct email to users have achieved the same outcome at a fraction of the cost?”
The Taxpayers’ Union says Labour can scarcely believe its luck with the Government’s insistence that its proposed levy on electricity bills isn’t a tax because it’s a levy.
Taxpayers’ Union Executive Director Jordan Williams said:
“We’ve been fielding calls and interview requests all day from people wanting to know whether we consider a levy a tax. The definition of a levy is literally ‘the act of imposing a tax, charge, or fine’. This isn’t complicated.”
“The last Prime Minister to try this line was Jacinda Ardern, who desperately wanted her clean car emissions levy not to be called what National quite rightly branded it at the time: the ute tax. Watching National now recycle Labour’s talking points is both ironic and alarming.”
Williams said while the case for improving energy security and addressing dry-year risk is legitimate, the decision to fund an LNG terminal through a compulsory charge on electricity bills was a political and policy blunder.
“This Government campaigned relentlessly on ‘no new taxes’, and warns voters that Labour and its Green and Te Pāti Māori partners would hike costs. Then it turns around and announces a new charge on one of the most sensitive household bills in the country. You don’t need a focus group to know how that lands.”
“There are clear alternatives. The Government could recycle a small portion of the $14 billion of energy assets it already owns and ring-fence the proceeds to fix the energy mess Labour left behind. Labour would struggle to criticise asset recycling when the money is used to stabilise supply and lower prices. Instead, National has chosen to tax power bills and argue about definitions.”
Williams warned that if the Government doesn’t change course, it risks undermining its core election message just months out from polling day.
“This is an unforced error. The LNG facility is defensible. Funding it through a levy on electricity is not. If National wants to keep its credibility on tax and not hand Labour a stick to whack back with, Mr Luxon should ditch the levy and insist his Ministers find another way to pay.”
The New Zealand Taxpayers’ Union is backing Federated Farmers’ alarm over draft resource management legislation that could open the door to effectively enabling a tax on water by stealth.
Taxpayers’ Union spokesperson Tory Relf says:
“This is exactly the kind of slippery, backdoor taxing power taxpayers have every right to be worried about. If the Government wants to fix planning laws, it should do so transparently, not sneak in the ability to tax water through future Ministerial decree.”
“Freshwater is already heavily regulated. Giving Ministers sweeping powers to auction rights or impose levies is not reform, it’s a blank cheque for future Governments to treat water as a cash cow.”
“Make no mistake: a water tax doesn’t just hit farmers. It flows straight through to higher food prices, higher costs for exporters, and higher bills for every New Zealander.”
“The whole point of replacing the Resource Management Act was to cut bureaucracy and restore property rights. Provisions like those allowing freshwater being auctioned, tendered, or levied undermine that promise and will only create more uncertainty, more compliance costs, and more distrust.”
“The Government must urgently clarify its intentions and scrap any clauses that allow freshwater rights to be effectively taxed. Kiwis were promised reform, not a new stealth tax.”
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