Haha yes exactly - Just like what would have happened to that saving of GST on fresh fruit & vegetables. 15% more to spend at KFC, BK, McD's etc.
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I agree. I said it could be tax neutral...that depends on policy details and implementation. However they are trying to address a symptom.
I agree. As far as I can see it is thin in details. " Labour says this could be on heating or investing in draught-stopping and insulation." How they would achieve that I do not know.Quote:
If the policy was implemented I think a voucher or direct payment to the power provider would be more appropriate, as a cash payment is likely to be spent elsewhere.
http://www.nzherald.co.nz/nz/news/ar...ectid=11888608
The difference lies in the intent of the policy. The stated purpose of removing GST on fresh fruit & vegetables is to increase consumption, while the purpose of tax cuts is simply to leave taxpayer money back in their pockets where they are free to spend it as they wish.
If consumption has not increased by a statistically significant margin subsequent to implementation of the policy, then it has failed to achieve its goal. I like many others, are very unlikely to increase consumption of Brussel sprouts when I can buy something much tastier.
But why did you assume that the tax saving from fresh vegetables would be spent on fast food instead of increasing the consumption of fresh vegies?
Isn't a major intent behind income tax cuts/ flat taxes for the wealthy to facilitate a boost in the desire to produce more and earn more income, (with a consequent trickle-down effect to lower-income earners?) That is somewhat defeated if a major part of the tax cuts just end up boosting the price of land.
Lots of that Fundamental uncertainty around..Lots of negative issues in play too.
The focus is around NZ elections..but some issues of concern are from abroad especially in Ozzie..The whole retirement village sector in Australia has been under public/media attack for a while now and it is not going away, if anything it is intensifying with the State Governments now becoming involved by creating inquiries and looking to review their Retirement Village Act...It doesn't directly affect SUM but since the Retirement Village concept is similar in both Countries, the OZ issues could have a potential to spread thereby creating more uncertainty in NZ..The Ozzie media know they are on a winner too..guaranteeing Public support when mentioning evidence of the big operators' diminishing the family inheritances by perceived screwing of Granny and Grandpops..
https://www.theweeklysource.com.au/f...ment-villages/
https://www.theweeklysource.com.au/v...-villages-act/
https://www.theweeklysource.com.au/s...ning-contract/
Having a look at RYM which has Ozzie exposure, their chart shows they have performed the worst out of the NZ retirement village companies...
And there are many competitors coming into this lucrative market from all slightly different property/village sector angles..Of conceptual interest..I am seeing an increasing number of gated communities being built in Hamilton (up-market residential)..with some developers being the operators.. The gated community I see often is very nice.. the gates are entry/exit keypaded as they are closed after 6pm..The owners pay a fortnightly maintenance fee.. They have extensively well maintained communal gardens with gardeners/maintainance people..There is a communal hall for various functions meetings and social gatherings and an office/nurse centre..Most of the owner/occupiers of the stand alone bugalows/townhouses are the 60+ people....
I assume these various types of competitors operate with less Government/local regulations..
As Ryman shareholders are aware, from Ryman newsletters and announcements, they are finding their reputation has gone ahead of them,and their developments are selling like hot cakes.
They have also stated their "total care" instead of "lifestyle" is very different than the Aussie retirement village sector model,and has been readily accepted by Australian retirees.
They have also clearly stated they have nothing to fear from Australian regulators.
The proof of this is the number of development villages Ryman are developing in and around Melbourne.