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 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.”

Dear Supporter,

The silly season is well underway. It's the time for Christmas shopping, summer planning, last minute errands, and when Governments tend to 'take out the trash' – hoping bad news stories are buried in the Christmas rush. So while Christmas is right around the corner Santa's naughty list is growing.

This week, we learned of some sneaky (unannounced) tax changes from Wellington, that rates capping has been delayed until 2029, the bureaucrat golden goodbye bonanza continues, and a record high rates hike in the pipeline for Aucklanders.

Oh, and you might have noticed a bit of media attention the last few days on a new campaign we've not even launched yet! Some comments about that below...

So grab a cuppa. This end of week wrap up is stacked.

Rates Cap Now ✅ or Rates Cap Later ❌

On Monday we learned the good news is that the capping of crippling council rates is coming. The bad news is that the Government has pushed back implementation until 2029.

That means that councils now have three full years to make massive rate hikes before the cap kicks in. And does anyone have faith that they won't?

Most councils are currently working on their Long Term Plans – which are required to be done every three years to set out rates and spending parameters for the following 10 years (yes, I know how that reads).

That means the window of opportunity to force councils to live within their means (and what ratepayers can afford) is narrow. The Government’s delay is an invitation for local councils to hike everything now, bake it into the baseline, and shrug later.

Obviously, we had a lot to say on this issue, with Tory on Three News making the case for ratepayers and why we need to Cap Rates *Now*.

James was also busy. His excellent op-ed for The Post also points out that councils will rush to push rates up while they still can, because once the cap arrives, they’re locked in. I just love the last line of this:

Continue reading over on The Post's website.

Yours truly had a longer discussion with current Otago Regional Councillor (and host on The Platform) Michael Laws. 

I also spoke with Duncan Garner for his Editor in Chief podcast.

TVNZ bias: even AI is noticing 📺

Strangely, we didn't hear a whisper from TVNZ's One News, despite your humble Taxpayers' Union both proposing the rates capping policy, and driving the campaign to get the Government to adopt it!

Just like One News strived to ignore ratepayers during the whole two years of coverage of the last Government's Three Waters effort, they'd rather stick to "insiders" like Local Government NZ and others who are using ratepayer money to oppose our Cap Rates Now campaign.

And we are not alone.

New AI analysis of the framing of political stories by One News suggests that something is going seriously awry at the taxpayer-owned broadcaster...

NEW Rates Cap Dashboard: How much have you already been fleeced? 💳🐑

As you know, we track council rates across the country closely. Earlier in the year we exposed that cumulatively, over the last three years, the average rates hike by councils was an incredible 35 percent. 

So on Friday we launched the Rates Cap Dashboard – a new tool revealing what the average household in every council district would have saved if the Government's rates cap had been in place over the past three years.

James and his team found:

• Across the country, the average household would be between $670 and $864 better off right now had the proposed 2-4 percent cap been in place over the last three years.
• The average household in 21 council areas would have saved more than $1,000 each
• Queenstown-Lakes District ratepayers would have saved the most: an incredible $1,706 lost per household.
• Even in councils with the smallest numbers, a rates cap would still have left hundreds of dollars in the pockets of every local ratepayer.

👉 See what your council cost your household in lost savings here

The campaign isn't over: we've got Cabinet over the line on the Cap Rates bit, now we just need them to do it NOW.

To back the Cap Rates Now campaign and chip-in to the fighting fund, click here.

Mayor Brown’s Rates Cap Backflip 💥🛑

Wayne Brown campaigned as the guy who’d rein in Auckland Council waste. But fast forward to today, and Auckland Council’s operating spending continues to balloon right under Mr Brown's nose. 

Despite the rhetoric, Wayne Brown has hiked Council spending by more than 20.5% in just three years. Cumulative inflation over the same timeframe has been seven percent.

During the election campaign just been, Brown committed to keep rates no more than 1.5 percent above inflation – which is bang on the midpoint for where the Government has set its cap! But now, just three months later, Wayne Brown has changed his tune. 

Now the Mayor says a rates cap “won’t work” –  announcing a 7.9 percent rates hike within an hour of the Government announcing its policy.

If Wayne Brown gets his way, next year's rates hike will be the highest ever for the Super City!

Brown is blaming the City Rail Link which he claimed will add $1 million a day to ratepayers’ costs. But our friends at the Auckland Ratepayers' Alliance checked the numbers: the actual cost is $26 million a year, or roughly equivalent to 1 percent on rates.

Not nothing, but nowhere near the eight percent figure Wayne Brown is pushing.

Brown isn’t levelling with Aucklanders — and that’s exactly why we need a legally enforceable cap.

With my Ratepayers' Alliance hat on I joined Newstalk ZB to call out Mayor Brown's 'absolute nonsense' 👇

IRD's sneaky pre-Christmas surprise 🎄⚠️

While no one was paying attention, the IRD quietly dropped one of the most destructive tax changes we’ve seen in decades.

Here’s the gist:

• Many small businesses pay owners through a running loan account during the year.
• At year-end, they clear it with dividends or salary — standard practice.
• Under the new rule, if the loan isn’t cleared within 12 months, IRD will now treat the whole loan as taxable income…
• …and the owner still has to repay the loan later using more taxable income.

Yes, taxed twice. Yes, retrospective, covering the current tax year (in fact, IRD say the law will be backdated to come into effect as of Thursday). And no, there was no press conference, no speech, no debate. Just a quiet upload to the IRD website.

Our tax experts say that these changes will have a far greater impact on New Zealand's SMEs and farmers than Labour's proposed Capital Gains Tax. No wonder the Government is mum!

And nothing says “Merry Christmas” like a backdated tax bill.

Sneaking a policy of this magnitude through without fanfare over summer is bad form. You can read our full comments here.

Submissions close on 5 February (more info here) – rest assured that the Taxpayers' Union will be back to work well before then! 

Golden Handshakes: More than $837,000 in a single week (and that's just those we know about!) 🤦‍♀️💰

If you thought we’d hit peak golden handshake insanity with Adrian Orr's $416,120 "golden goodbye", think again. This week alone, we already know taxpayers are on the hook for:

• Andrew Coster (disgraced former head of the Social Investment Agency who was allowed to resign and therefore collect a garden leave/three-month's pay windfall) – $130,000
• Diana Sarfati (former head of the Ministry of Health)– $350,000
• Sarah Fitt (former Pharmac boss) – $357,000

Tory spoke to Newstalk ZB on Andrew Coster's golden handshake and the scale of his payout, which you can listen to here.

We’ve also seen another resignation as the Coster fallout continues to reverberate through Wellington.

This time a former Deputy Police Commissioner now at the Civil Aviation Authority, was rewarded with a payout – and one that the CAA chief refused to even declare when asked by MPs during Parliament's scrutiny week.

That’s a) a middle finger to transparency and b) likely to push the total north of $1 million this week alone.

This is why we’re pushing for a hard cap on exit payouts, zero payouts for anyone paid more than an MP, and full transparency in public servants receiving such payouts.

Until then, the golden handshake conveyor belt rolls on.

Labour using taxpayer funded staff to make Party propaganda 📹🚫

At Labour’s conference, their social media adviser — funded by Parliamentary Service — was producing political content on the taxpayer dollar.

The rules are clear: Parliamentary staff support MPs’ official duties, not partisan content creation for the party machine.

I don’t think it’s complicated. If parties want political videos, they should use party funds, not raid the taxpayer wallet.

And yes, this all happened during Scrutiny Week. You couldn’t write it better.

Health NZ spending $3.5 million this year on “non-jobs” 🧘‍♂️🌀

The year might be nearly over, but everyone’s favourite Investigations Coordinator Rhys is still hard at work digging into waste across local and national government.

On Friday, Rhys revealed Health NZ employs 13.7 FTE staff dedicated exclusively to DEI, sustainability, climate, and non-clinical “culture” work.

The total salary bill is a jaw-dropping $3,475,054.

Back of the envelope, that's an average salary of $253,654! 

As is usual, Rhys has linked to all the source material on the website, so you can judge for yourself whether these Health NZ salaries are justified...

As you can see, while Health NZ only give us the salary information in bands, we can work out from the total that most of the roles are paid at the very upper end!

Meanwhile:

• Emergency departments are overflowing
• Waitlists are blowing out
• Surgical backlogs are growing

This is the problem in a nutshell: We’re funding everything except actual healthcare.

One more thing... 

Finally, we’ve had a lot of good publicity for our campaign launching very soon, and now it is our turn to say what it is all about.

The campaign is about Nicola Willis becoming our best ever finance minister. No one wants her to succeed more than than Taxpayers’ Union to cut wasteful spending, balance the books, and keep out a Labour-TPM-Green high tax, high deficit, 'addicted to spending' disaster.

Our pressure campaign is about pointing out the fiscal elephants in the room and her having the incentives from voters to become our best ever finance minister and get New Zealand off the disastrous fiscal track it has been on for so long.

Watch this space...

Jordan Williams Executive Director New Zealand Taxpayers’ Union.

Ps. As well as the last Taxpayers' Union-Curia Poll of 2025, it's looking likely the Government's replacement to the Resource Management Act is going to be released early next week. This is likely to be the biggest (regulatory) tax relief any government has delivered under MMP. As soon as we have worked through the details, we'll get them to you. A big week ahead!

Read more

The Taxpayers' Union is calling for greater transparency and a hard cap on exit payouts in the public sector after taxpayers have funded an eye-watering $837,000 bill for golden handshakes this week alone.

The $837,000 bill stems from three high-profile public sector exits this week:

• Andrew Coster - ex-chief executive of the Social Investment Agency - $130,000
• Diana Sarfati - Former Ministry of Health director - $350,000
• Sarah Fitt - Former Chief Executive for Pharmac - $357,000

Taxpayers' Union spokesperson Tory Relf said:

"It’s a slap in the face for New Zealanders who are struggling with the cost of living. These handshakes are outrageous, especially in cases of voluntary departures like Diana Sarfati and in exits that should have been dismissals like Coster."

“You can’t sustain a culture where poor performance is met with a reward. Until the Government clamps down on these payouts, taxpayers will keep getting burned. The government needs to start showing some fiscal responsibility.”

“The scale of this $837,000 taxpayer bill is obscene. The Taxpayers' Union is calling on Minister Brooke van Velden ensures her reforms include a hard cap and ban all exit payouts for public service employees paid more than an MP.”

The New Zealand Taxpayers’ Union is calling on the Clifton Community Board today to reject a proposal to spend $113,850 ($99,000 plus GST) of ratepayer money on two “Welcome to Urenui” signs placed next to existing NZTA signage. This will be decided by the board during a vote at 4pm today.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, says:

"Ratepayers shouldn’t be spending more than $100,000 on signage that duplicates what’s already there. These signs are already in front of two existing NZTA town signs, meaning you get welcomed not once, not twice, but three times."

“Public money should be going into core council services, not vanity signage and arts funding disguised as relationship building.”

"Yet this time there’s still the chance for Clifton's locally elected members to do the right thing and vote no."

"There’s still time for Cliftons locally elected members to do the right thing for ratepayers; vote no to $113,850 vanity arts projects and yes to common sense.”

The New Zealand Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that Tauranga City Council has spent a total of $67,739 on decorative artwork for a single bus stop with $50,000 or 73.8 percent of the cost on design alone.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“This is another case of councils treating ratepayers like an open chequebook. Nearly $70,000 on a single piece of bus stop art is absurd.”

“You could buy a new car for what they spent on artwork at a bus stop. Worse still, most of it went on ‘design’ not materials, not installation, but presumably someone sketching it out at a desk.”

"All this comes the same week the Council also celebrated the opening of its brand-new $45 million headquarters, as residents brace for a 9.9 percent rates rise."  

“The pattern is clear: the culture of waste will continue until councils are forced to live within their means. We need Rates Capping Now!"

The Taxpayers' Union can reveal that Te Wharekura o Tauranga Moana is set to take staff to Tahiti this Friday and refuses to answer basic questions to justify the spend.

Taxpayers' Union Executive Director Jordan Williams said:

"Earlier this week we received a tip off that Te Wharekura o Tauranga Moana is taking all its staff to Tahiti for a 'team building' and 'leadership' trip. The school has refused to engage with us, return calls, or answer questions. In fact, since our reaching out yesterday morning the school's phone has literally been off the hook."

“No wonder the Principal is hiding. This is taxpayer-funded tourism, not education.”

"Any justification that this is about team building is a fraud. This school is already a very tight knit community. In fact, it appears many of the teaching staff are actually in the same whanau."

"There is absolutely no excuse for using taxpayer money on an overseas island holiday for school staff.  School operational funds are meant for teaching kids and this is precisely the sort of spending the Auditor General has previously called out as unacceptable."

"There may be some justification for overseas professional development for principals, but that can't possibly extend to all school staff. This looks to be a rort and the fact the school literally won't pick up the phone now they know we are on to them is an 'up yours' to both taxpayers and Tamariki."

"Given the trip isn't for a few days, we call on the Minister of Education to intervene and pull the plug. Every dollar spent on these trips is a dollar not going to classrooms. If the Minister won’t act now, she’s endorsing waste.”

A Local Government Official Information Act request made by the New Zealand Taxpayers’ Union shows a new toilet block is budgeted to cost ratepayers $2.3 million, which includes costs for a light-up exterior and archaeological work.

Taxpayers’ Union Local Government Campaigns Manager Sam Warren said:

“How reckless can Wellington Council be? It's unjustifiable to throw this kind of money around, including for archaeological costs, while a record number of locals are being rated out of their own homes.”

"This build-at-all-costs approach needs to stop. On top of last year’s 16.9 percent rates increase and this year’s proposed 12.2 percent increase, we’re looking at a cumulative 31 increase to average rates in just two years.”

“It’s not hard to see why rates are soaring; Council has clearly lost focus. Toilet blocks don’t need a social license, nor a dig find—they need to be delivered well and affordably.”

“Until rates capping laws are introduced, councils across New Zealand will continue to flush this kind of money away. Not enough pressure exists to keep councils on-task and focused, providing only the basics well.”

The Taxpayers’ Union has revealed through an Official Information Act request that the Department of Conservation (DOC) has spent $411,875 on the endangered southern Powelliphanta augusta snails.

Following the collapse of Solid Energy, DOC took over responsibility for the captive snails, with additional habitat restoration projects now costing more than $1 million.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“These snails have been in captivity since 2006. DOC has killed over 800 by accident, yet they’re still planning to spend millions and another five years till they'll all be fully released.”

“There have been multiple proposals for this programme, but instead DOC has bred over 4,000 snails in fridges in Hokitika and is now figuring out how to slow the breeding down as facilities hit capacity.”

“Taxpayers aren’t opposed to conservation, but the lack of substance in this scheme shows the ridiculousness of the system. It drains DOC funding away from other species, is unaccountable, and refuses to acknowledge success.”

“This is conservation at its most expensive and least effective. It's time to take the snails out of the fridge and make the hard decisions on protecting our native species.”

The Taxpayers’ Union can reveal through an Official Information Act response that the Ministry of Business, Innovation and Employment (MBIE) has lost or had stolen 280 taxpayer-funded iPhones and iPads over the last three financial years.

With 258 missing iPhones and 22 iPads, that is almost two devices going missing every single week. Based on MBIE’s estimates, the average replacement cost per device is $490, putting the bill at $137,200.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley said:

“You’d think the Ministry in charge of economic development might have a handle on keeping track of its own gear. Two lost iPhones a week is either shockingly poor management or a sign of a department that simply doesn’t care that taxpayers are footing the bill.”

“Worse still, these figures dont include lost laptops. They are the most expensive devices, so this $137,000 is just the tip of the growing iceberg.”

“These government agencies need stricter internal accountability for missing equipment, full transparency on the real cost of lost laptops, and clearer consequences for departments that treat public property like it's disposable.”

“While households across the country are cutting back, MBIE is running a revolving door for lost iPhones. Taxpayers deserve better.”