The New Zealand Taxpayers’ Union can reveal that the Ministry of Social Development paid taxpayer-funded bonuses exclusively to Public Service Association members before their collective agreement had even been signed by the union. An Official Information Act request revealed 5,459 FTE received the $300 member-only benefit, costing taxpayers $1,637,700.

Taxpayers’ Union Lead Investigator, Rhys Hurley, said:

“Among other bonuses for Te Reo capability and overtime allowances sits Clause 2.8.1, the ‘Lump Sum Payment': a union-favouritism clause dressed up as a good-faith benefit for union members but funded by taxpayers.”

“MSD paid out the more than $1.6 million to PSA members before the union had even signed the agreement, following a similar Health NZ deal earlier this year.”

“Only in the public service would a payout that effectively leaves taxpayers funding union membership fees even make it out of bargaining, let alone be paid out before any agreement had even been signed.”

“If the Ministry wants to hand out special payments to union members, then the responsible Minister should be signing off these agreements and justifying them personally.”

The Taxpayers’ Union is calling on the Government to urgently raise the age of superannuation eligibility in light of a newly released Treasury briefing warning of deep cuts to core services like health and education unless major spending reforms are undertaken.

Taxpayers’ Union spokesperson Tory Relf said:

“Kicking the can down the road is not an option. Treasury’s warning is clear – unless we make tough but fair decisions now, future generations will be stuck with worse public services, higher taxes, and an economy strangled by debt.”

"Government expenditure outside superannuation and health is already excessive.  Stronger fiscal consolidation is needed immediately.  Minister Willis’ target of core Crown expenditure not exceeding thirty percent of GDP not only looks unachievable under current policies, it is insufficient."

“The Taxpayers’ Union is urging the Government to begin incrementally lifting the eligibility age to 67 over the coming decade, in line with moves already adopted by comparable nations such as Australia, the UK, and the USA.”

“Raising the super age is one of the most obvious and responsible steps we can take. We are living longer, healthier lives, yet we continue to pay billions more each year in superannuation without any adjustment. It’s unaffordable.”

“It’s time for political courage and long-term thinking. The sooner we act, the fairer and smoother the transition will be. Pretending there isn’t a problem only makes the eventual fix more painful.”

The Taxpayers’ Union is backing Prime Minister Christopher Luxon’s comments on reining in pandemic-era sick leave rules.

Taxpayers’ Union spokesperson Tory Relf says: “The current system is fundamentally unfair, costly, and out of touch with economic reality - especially for the taxpayers footing the bill.”

“Sick leave entitlements disproportionately favour part-time workers, some of whom can claim the same leave as full-timers despite working a fraction of the hours. That’s simply not fair, particularly when those jobs are taxpayer-funded.”

“New Zealand’s already dire productivity is being hammered by skyrocketing absenteeism at huge public cost.”

Nationally, absences jumped from 7.3 million in 2022 to 10 million in 2023. In the public service alone, the average number of sick/domestic leave days rose more than 26 percentsince the introduction of the amended legislation, adding up to 648,347 lost workdays last year - all paid for by the taxpayer.

“And now, according to Southern Cross, staff are increasingly treating paid sick leave as a no-questions-asked entitlement, even when they’re not genuinely unwell,” Relf says.

“New Zealand is already near the bottom of the OECD for productivity. We can’t fix that if we’re asking taxpayers to pay more and get less.”

“Luxon’s idea would be a much-needed reset. Fairer rules, fewer lost days, and better value for event cent of taxpayers' money being spent.”

The Taxpayers’ Union is welcoming the decision to limit access for 18 and 19 year olds who are not working or in education to Jobseeker Support and Emergency Benefit, but is questioning why this change isn’t being implemented until July 2027.

Taxpayers’ Union Spokesman James Ross asks:

“Getting teenagers off the couch is a good idea so why wait two years?”

“We need to be realistic about what we can afford as a country. Taxpayers shouldn’t be stumping up to support school-leavers who simply don’t want to work.”

“Those 18 and 19 year olds who need support can still get it – that’s not changing. So why are taxpayers stuck paying millions for people who don’t need it?"