1 00:00:05,480 --> 00:00:05,920 Speaker 1: Kiyota. 2 00:00:06,000 --> 00:00:08,959 Speaker 2: I'm Chelsea Daniels and this is the Front Page, a 3 00:00:09,080 --> 00:00:12,360 Speaker 2: daily podcast presented by the New Zealand Herald. 4 00:00:16,000 --> 00:00:18,759 Speaker 1: The financial year is coming to an end. 5 00:00:19,000 --> 00:00:21,440 Speaker 2: It means we'll see a whole bunch of policies and 6 00:00:21,520 --> 00:00:26,720 Speaker 2: adjustments from April first. Everything from crayfish catch limits and 7 00:00:26,800 --> 00:00:30,280 Speaker 2: far mac funding to changes to the living and minimum wages, 8 00:00:30,840 --> 00:00:35,840 Speaker 2: super innuitance, working families, students and beneficiaries are among those 9 00:00:35,880 --> 00:00:39,560 Speaker 2: who will receive additional support. On the law and order front, 10 00:00:39,720 --> 00:00:43,239 Speaker 2: the government's crackdown on drug drivers is set to ramp up, 11 00:00:43,360 --> 00:00:46,800 Speaker 2: and power bills are expected to increase after the Commerce 12 00:00:46,800 --> 00:00:51,120 Speaker 2: Commission agreed to let local lines companies charge households and 13 00:00:51,240 --> 00:00:53,400 Speaker 2: businesses more a couple of years ago. 14 00:00:53,760 --> 00:00:55,240 Speaker 1: Today on the Front Page ends. 15 00:00:55,080 --> 00:00:57,920 Speaker 2: At Herald Business Editor at Large Liam dan is with 16 00:00:58,000 --> 00:01:01,160 Speaker 2: us to break down what change are in the works 17 00:01:01,360 --> 00:01:03,600 Speaker 2: and what it might mean for you and. 18 00:01:03,560 --> 00:01:07,679 Speaker 1: Our economy solely. 19 00:01:07,720 --> 00:01:10,840 Speaker 2: I'm a whole bunch of changes to benefits today. 20 00:01:10,880 --> 00:01:12,320 Speaker 1: Can you run me through a few of them? 21 00:01:12,680 --> 00:01:15,840 Speaker 3: Yeah, Classic April one. The stuff that's been announced over 22 00:01:15,880 --> 00:01:19,920 Speaker 3: the past year or a few months from the government 23 00:01:20,080 --> 00:01:22,119 Speaker 3: comes into force. Some of the big ones that are 24 00:01:22,120 --> 00:01:26,399 Speaker 3: going to get noticed benefits rising, so super innuitants are 25 00:01:26,440 --> 00:01:30,839 Speaker 3: going to see some increases. I think something like married 26 00:01:30,880 --> 00:01:36,600 Speaker 3: couple would qualify for about fifty dollars a fortnight. You've 27 00:01:36,640 --> 00:01:41,880 Speaker 3: got changes to the Family Tax Credit, so that sees 28 00:01:42,040 --> 00:01:45,600 Speaker 3: eligible families with one child receiving extra four hundred dollars 29 00:01:45,600 --> 00:01:49,720 Speaker 3: a year. Families with two children maybe seven twenty and 30 00:01:50,720 --> 00:01:53,760 Speaker 3: three children one and fifty. So what's that if you've 31 00:01:53,800 --> 00:01:56,600 Speaker 3: got three kids, it's about twenty bucks a week. Student 32 00:01:56,640 --> 00:01:59,040 Speaker 3: allowances if you're lucky enough to get a student allowance, 33 00:02:00,280 --> 00:02:04,640 Speaker 3: twenty two dollars a fortnight, and beneficiaries like I guess 34 00:02:04,640 --> 00:02:08,840 Speaker 3: the way this government is it's never keen to promote 35 00:02:08,560 --> 00:02:11,360 Speaker 3: the increases in the and the benefits. But a single 36 00:02:11,360 --> 00:02:14,520 Speaker 3: person over twenty five on the job seeker support would 37 00:02:14,520 --> 00:02:17,400 Speaker 3: get twenty two dollars extra a fortnite. A couple with 38 00:02:17,560 --> 00:02:20,600 Speaker 3: children would receive an extra forty dollars a fortnight on 39 00:02:20,639 --> 00:02:24,160 Speaker 3: top of the family tax credit. So those are some 40 00:02:25,000 --> 00:02:28,280 Speaker 3: quite big changes for those people that they affect. This 41 00:02:28,320 --> 00:02:29,520 Speaker 3: is going to be a theme of what we talk 42 00:02:29,560 --> 00:02:32,880 Speaker 3: about today, but you can bet that's being eaten up 43 00:02:32,960 --> 00:02:35,440 Speaker 3: by inflation and oil costs, right now. 44 00:02:35,680 --> 00:02:38,120 Speaker 2: Well, this is something that happens every year, right, is 45 00:02:38,160 --> 00:02:41,720 Speaker 2: in the government actually you know, has to do this. 46 00:02:41,880 --> 00:02:43,320 Speaker 1: Can they take credit for it? 47 00:02:43,600 --> 00:02:45,440 Speaker 3: I think in a weird sort of way, they're probably 48 00:02:45,520 --> 00:02:48,239 Speaker 3: kind of taking credit for not doing as much as 49 00:02:48,240 --> 00:02:49,040 Speaker 3: they have in the past. 50 00:02:49,080 --> 00:02:50,360 Speaker 1: They're doing the bare minimum. 51 00:02:50,440 --> 00:02:53,519 Speaker 3: Yeah, so yeah, the government kind of does this every year. 52 00:02:53,639 --> 00:02:55,320 Speaker 3: The other one that is in there that's the sort 53 00:02:55,320 --> 00:02:58,360 Speaker 3: of an annual thing is a change to the minimum wage. 54 00:02:58,560 --> 00:03:01,600 Speaker 3: So and so the minimum wage goes up by two 55 00:03:01,600 --> 00:03:06,160 Speaker 3: percent to twenty three ninety five an hour. That's not 56 00:03:06,200 --> 00:03:08,560 Speaker 3: a huge increase two percent, it's below inflation. So in 57 00:03:08,600 --> 00:03:12,760 Speaker 3: a way, I think in terms of this government and 58 00:03:12,840 --> 00:03:15,960 Speaker 3: Nicola willis the finance minister, trying to present themselves as 59 00:03:16,040 --> 00:03:20,480 Speaker 3: very fiscally responsible and not having money to spend. Yeah, 60 00:03:20,520 --> 00:03:23,120 Speaker 3: the credit they're taking is for not splashing out. And 61 00:03:23,160 --> 00:03:27,760 Speaker 3: so this is actually at the tighter end of what's 62 00:03:27,840 --> 00:03:33,720 Speaker 3: been sort of allocated over the past several years. And yeah, 63 00:03:34,080 --> 00:03:37,720 Speaker 3: is going to be below the cost of living increases 64 00:03:37,760 --> 00:03:40,840 Speaker 3: that most people in this bracket are facing. 65 00:03:41,280 --> 00:03:45,119 Speaker 2: Well, I saw that when a Workplace Relations Minister Brook 66 00:03:45,160 --> 00:03:48,000 Speaker 2: van Velden actually announced the change to the adult minimum 67 00:03:48,000 --> 00:03:51,400 Speaker 2: wage she said, and I quote, the increase aims to 68 00:03:51,440 --> 00:03:53,920 Speaker 2: help minimum wage workers keep up with the cost of 69 00:03:53,960 --> 00:03:58,360 Speaker 2: limiting with inflation projected to remain relatively stable at around 70 00:03:58,400 --> 00:04:01,160 Speaker 2: two percent from June twenty twenty six. She made this 71 00:04:01,200 --> 00:04:05,360 Speaker 2: announcement in December. We all know things have changed a 72 00:04:05,360 --> 00:04:09,160 Speaker 2: little bit since then. Things are relatively unstable until June 73 00:04:09,160 --> 00:04:13,000 Speaker 2: twenty twenty six. I mean, with this kind of announcement, 74 00:04:14,280 --> 00:04:17,640 Speaker 2: why does does government make these decisions, say like six 75 00:04:17,680 --> 00:04:19,640 Speaker 2: months out from the minimum waging crease. 76 00:04:19,720 --> 00:04:23,560 Speaker 3: Some of it it's the budget, the way the creation 77 00:04:23,760 --> 00:04:26,719 Speaker 3: of law works. You know, it's quite a complicated process. 78 00:04:26,720 --> 00:04:30,080 Speaker 3: So they will announce a policy plan that it gets 79 00:04:30,120 --> 00:04:35,040 Speaker 3: worked through into the sort of legal framework or legislative framework, 80 00:04:35,400 --> 00:04:37,479 Speaker 3: and it can take a long time. So that's traditional 81 00:04:37,560 --> 00:04:41,400 Speaker 3: that April one. That's why we have April Fools because 82 00:04:41,560 --> 00:04:44,800 Speaker 3: that's the day that all new law changes came through. 83 00:04:44,839 --> 00:04:47,760 Speaker 3: And I guess the jokers that we think politicians are 84 00:04:47,800 --> 00:04:51,640 Speaker 3: idiots or something like that, but you know, so traditionally, 85 00:04:51,680 --> 00:04:54,040 Speaker 3: you know, it's been a day of pranks and all 86 00:04:54,040 --> 00:04:56,320 Speaker 3: that sort of stuff. But also traditionally the day that 87 00:04:57,520 --> 00:05:02,279 Speaker 3: primarily historically tax has changed. You know, it's the it's 88 00:05:02,320 --> 00:05:04,600 Speaker 3: the new financial year for a lot of a lot 89 00:05:04,640 --> 00:05:06,960 Speaker 3: of people. Traditionally it was it's changed a little bit 90 00:05:06,960 --> 00:05:10,640 Speaker 3: over over time. So yeah, yep, there's that. I mean, 91 00:05:10,680 --> 00:05:15,000 Speaker 3: I think that was pretty optimistic to suggest that a 92 00:05:15,040 --> 00:05:18,320 Speaker 3: two percent increase to the minimum wage was going to 93 00:05:18,400 --> 00:05:21,880 Speaker 3: keep up with inflation. Even prior to the Iran conflict, 94 00:05:22,880 --> 00:05:24,719 Speaker 3: we were sitting at about we were sitting at three 95 00:05:24,720 --> 00:05:29,159 Speaker 3: point one. And I think the thing is that that 96 00:05:29,160 --> 00:05:33,960 Speaker 3: that sort of core inflation might be more subdued, you know, 97 00:05:34,040 --> 00:05:37,240 Speaker 3: like international affairs might prior to the war have been 98 00:05:37,279 --> 00:05:43,200 Speaker 3: looking okay, and various things can help reduce that CPI inflation, 99 00:05:43,880 --> 00:05:47,279 Speaker 3: but the really the really tough ones for people on 100 00:05:47,360 --> 00:05:50,760 Speaker 3: lower wages or lower incomes that you know, we've seen 101 00:05:51,600 --> 00:05:54,360 Speaker 3: food keep rising by about I thinks about four point 102 00:05:54,440 --> 00:05:57,320 Speaker 3: six percent in the last year. So food you've got 103 00:05:57,320 --> 00:05:59,960 Speaker 3: to have that. It's put oil petrol to one side, 104 00:06:00,000 --> 00:06:03,680 Speaker 3: because that's just an absolute nightmare anyway. But then electricity 105 00:06:03,720 --> 00:06:08,120 Speaker 3: prices have continued to rise, and so some of those 106 00:06:08,200 --> 00:06:11,240 Speaker 3: really basic things that people can't avoid have risen by 107 00:06:11,279 --> 00:06:15,040 Speaker 3: a lot more than two or three percent. And the 108 00:06:15,600 --> 00:06:18,719 Speaker 3: people who are the poorest, they're the ones who have 109 00:06:18,800 --> 00:06:23,119 Speaker 3: to spend most of their income on just that survival stuff. 110 00:06:23,160 --> 00:06:26,600 Speaker 3: So if you're earning a really great salary, you know, 111 00:06:26,760 --> 00:06:30,400 Speaker 3: a ceo, you know, thinking about CEOs earning their million 112 00:06:30,440 --> 00:06:32,719 Speaker 3: dollars in things they can afford to drive whatever, because 113 00:06:32,760 --> 00:06:36,080 Speaker 3: the increase in petrol price is just such a tiny 114 00:06:36,360 --> 00:06:39,760 Speaker 3: percentage increase based on relative to their total income. 115 00:06:40,000 --> 00:06:43,040 Speaker 2: Well, it's funny you mentioned electricity because power bills are 116 00:06:43,040 --> 00:06:44,479 Speaker 2: going up from today as well. 117 00:06:45,040 --> 00:06:46,320 Speaker 1: But we've known about this for a week. 118 00:06:46,360 --> 00:06:49,640 Speaker 3: But while a, yeah, this is the regulated part of 119 00:06:49,760 --> 00:06:53,080 Speaker 3: the power price we pay. So while there's always a 120 00:06:53,080 --> 00:06:55,240 Speaker 3: lot of focus on the spot prices and whether the 121 00:06:55,320 --> 00:06:58,840 Speaker 3: lakes are full and how much demand and usage there is, 122 00:06:59,279 --> 00:07:02,919 Speaker 3: there is quite a cost component to just moving the 123 00:07:03,360 --> 00:07:07,039 Speaker 3: energy around the country. And that's where transpower comes in, 124 00:07:07,080 --> 00:07:10,760 Speaker 3: and they sort of have those price increases are regulated. 125 00:07:12,120 --> 00:07:14,320 Speaker 3: So you know, I think even the Commerce Commission looked 126 00:07:14,360 --> 00:07:16,240 Speaker 3: and looked at that and said, look, we just have 127 00:07:16,320 --> 00:07:20,840 Speaker 3: to live with that because that is required for maintenance, 128 00:07:20,920 --> 00:07:25,240 Speaker 3: for building new distribution line you know, lines for distributing 129 00:07:25,280 --> 00:07:28,880 Speaker 3: the power, and of course the you know, the transpower people. 130 00:07:29,600 --> 00:07:31,840 Speaker 3: Inflation just flows through everything. So if they're having to 131 00:07:31,840 --> 00:07:34,000 Speaker 3: pay workers more or the cost of getting out there 132 00:07:34,000 --> 00:07:37,119 Speaker 3: to fix a pie line or something has increased. That 133 00:07:37,120 --> 00:07:38,720 Speaker 3: that is part of it. So this is a Yeah, 134 00:07:38,760 --> 00:07:42,320 Speaker 3: this is a fully regulated power increase, one increased to 135 00:07:42,320 --> 00:07:44,640 Speaker 3: altricity that we just can't avoid unfortunately. 136 00:07:45,040 --> 00:07:47,880 Speaker 2: Yeah, because it went up ten dollars from April last 137 00:07:47,960 --> 00:07:50,680 Speaker 2: year and five dollars this year and then five dollars 138 00:07:50,680 --> 00:07:52,960 Speaker 2: a year until twenty twenty nine. 139 00:07:53,000 --> 00:07:54,720 Speaker 1: And that's to cover all the lines and stuff. 140 00:07:54,920 --> 00:07:56,520 Speaker 3: I think we just have to live with it. Yeah. 141 00:07:56,680 --> 00:08:00,200 Speaker 2: Yeah, Well the first step in the increase in can 142 00:08:00,240 --> 00:08:04,080 Speaker 2: we save a contribution rates, it takes effect today for 143 00:08:04,120 --> 00:08:05,920 Speaker 2: all people who don't opt out. 144 00:08:06,040 --> 00:08:08,440 Speaker 1: Tell me why I shouldn't opt out, Leam. 145 00:08:08,560 --> 00:08:10,600 Speaker 3: Yeah, this is a bit more exciting because this, to 146 00:08:10,640 --> 00:08:14,240 Speaker 3: me is sort of more about the long term economic 147 00:08:14,320 --> 00:08:19,320 Speaker 3: goals that New Zealand has of essentially getting kiwi's saving 148 00:08:19,480 --> 00:08:23,960 Speaker 3: more money, having more money at retirement, and also having 149 00:08:24,000 --> 00:08:27,800 Speaker 3: more money and more capital in these New Zealand based 150 00:08:27,880 --> 00:08:31,760 Speaker 3: funds which can actually be used to do things to 151 00:08:31,880 --> 00:08:35,240 Speaker 3: invest in infrastructure and all that sort of stuff. So yeah, 152 00:08:35,720 --> 00:08:40,120 Speaker 3: I think Australia's six and six I think is twelve percent. 153 00:08:40,840 --> 00:08:43,120 Speaker 3: You know, it's getting up to thirteen thirteen. Yeah, so 154 00:08:43,120 --> 00:08:47,560 Speaker 3: they're increasing as well. We are currently you know, three 155 00:08:47,600 --> 00:08:51,000 Speaker 3: and three, and so this is a move towards four 156 00:08:51,000 --> 00:08:56,240 Speaker 3: and four. So they're saying, well, the default rate rises 157 00:08:56,280 --> 00:08:59,720 Speaker 3: to three point five. Now, it's tough timing, right, because 158 00:08:59,720 --> 00:09:04,040 Speaker 3: it does take that that well, you know that that 159 00:09:04,360 --> 00:09:07,120 Speaker 3: half a percent out of your pay packet, but you're 160 00:09:07,200 --> 00:09:10,400 Speaker 3: keeping it's going into a fund, a fund which is 161 00:09:10,440 --> 00:09:14,080 Speaker 3: also you know, I suppose worryingly going backwards because of 162 00:09:14,120 --> 00:09:19,679 Speaker 3: the global turmoil. But if you're thinking, the important way 163 00:09:19,720 --> 00:09:21,840 Speaker 3: to think about that though, is it's now cheaper to 164 00:09:21,920 --> 00:09:25,360 Speaker 3: buy shares than it was you know, a month ago. 165 00:09:25,480 --> 00:09:27,079 Speaker 3: So actually, you know, they're really. 166 00:09:26,880 --> 00:09:29,000 Speaker 1: Smart internal optimistly know well. 167 00:09:28,880 --> 00:09:31,640 Speaker 3: That the smart investors will be looking for bargains right now, 168 00:09:31,720 --> 00:09:34,679 Speaker 3: and so you have to think long term. But there 169 00:09:34,720 --> 00:09:38,199 Speaker 3: is that issue that the smart investors probably do have 170 00:09:38,720 --> 00:09:41,719 Speaker 3: all their cost of living expenses covered, so they can 171 00:09:41,760 --> 00:09:44,560 Speaker 3: afford to think long term. And so that's the big dilemma. 172 00:09:44,600 --> 00:09:46,760 Speaker 3: It's a dilemma on a personal level, on the household 173 00:09:46,800 --> 00:09:50,320 Speaker 3: level around saving it's a dilemma on a national level 174 00:09:50,320 --> 00:09:53,920 Speaker 3: for our country because you know, you could you sort 175 00:09:53,920 --> 00:09:57,679 Speaker 3: of lurch from crisis to crisis and paycheck to paycheck 176 00:09:58,360 --> 00:10:01,360 Speaker 3: or do you just somehow you've got to break the 177 00:10:01,440 --> 00:10:03,520 Speaker 3: cycle and force yourself to save more so that you 178 00:10:04,080 --> 00:10:07,000 Speaker 3: get away from lurching from crisis to crisis. And so 179 00:10:07,080 --> 00:10:09,160 Speaker 3: this is a good step in the right direction. And 180 00:10:09,200 --> 00:10:10,959 Speaker 3: so of course, if you you're giving up half a 181 00:10:11,120 --> 00:10:14,160 Speaker 3: half a percent of pay, but you're getting, your employer 182 00:10:14,160 --> 00:10:17,400 Speaker 3: then has to match that. So actually you're gaining you know, 183 00:10:18,480 --> 00:10:20,840 Speaker 3: a full percent of your your wage or your salary 184 00:10:21,280 --> 00:10:25,800 Speaker 3: on top of your your key we savers say, you know, contributions. 185 00:10:26,280 --> 00:10:28,520 Speaker 3: That's got to be good. That's you know, I can't 186 00:10:28,520 --> 00:10:30,720 Speaker 3: do the math right now, but you know, someone you 187 00:10:30,760 --> 00:10:33,280 Speaker 3: look at their calculators like on sorted dot org and things, 188 00:10:33,280 --> 00:10:36,880 Speaker 3: and over the span of a worker's life, that's that's huge. 189 00:10:36,880 --> 00:10:39,280 Speaker 3: That's you know, tens of thousands of dollars extra going 190 00:10:39,280 --> 00:10:41,080 Speaker 3: to be in your account at the end of end 191 00:10:41,120 --> 00:10:43,360 Speaker 3: of your working life. 192 00:10:48,240 --> 00:10:51,280 Speaker 4: Our government has decided to go for a moderate increase. 193 00:10:51,600 --> 00:10:54,559 Speaker 4: It is a modest increase, but it's looking at the 194 00:10:54,679 --> 00:10:58,240 Speaker 4: cost that businesses will be needing to stomach to pay 195 00:10:58,360 --> 00:11:02,040 Speaker 4: employees more. We want to acknowledge that employees as well 196 00:11:02,080 --> 00:11:04,840 Speaker 4: as business have been doing it particularly tough this year. 197 00:11:05,600 --> 00:11:08,560 Speaker 4: We want more younger people into more jobs, but we 198 00:11:08,640 --> 00:11:11,360 Speaker 4: also know young people have been bearing the brunt of 199 00:11:11,480 --> 00:11:13,280 Speaker 4: new unemployment statistics. 200 00:11:13,559 --> 00:11:15,440 Speaker 1: How do we get more young people in jobs? 201 00:11:15,559 --> 00:11:20,000 Speaker 4: We build business confidence, We allow more businesses to hire someone. 202 00:11:20,520 --> 00:11:23,720 Speaker 4: But once you start attacking the minimum wage and putting 203 00:11:23,760 --> 00:11:25,680 Speaker 4: it up and up and up and up, it's really 204 00:11:25,720 --> 00:11:28,319 Speaker 4: going to change business confidence. 205 00:11:30,360 --> 00:11:32,920 Speaker 2: I saw that when the change was announced, though Treasury 206 00:11:32,960 --> 00:11:36,360 Speaker 2: said it expected eighty percent of the employer costs to 207 00:11:36,360 --> 00:11:39,720 Speaker 2: be met by lower than expected pay rises. Is that 208 00:11:39,840 --> 00:11:42,480 Speaker 2: just being quite cynical or well, I. 209 00:11:42,480 --> 00:11:46,040 Speaker 3: Suppose it's realistic. If you're working for a relatively small 210 00:11:46,040 --> 00:11:50,199 Speaker 3: business with just a handful of staff, you don't want 211 00:11:50,200 --> 00:11:52,160 Speaker 3: them to go to the wall. They've got to actually 212 00:11:52,480 --> 00:11:55,520 Speaker 3: be able to, you know, and they're facing all sorts 213 00:11:55,559 --> 00:11:59,600 Speaker 3: of costs, then yeah, you could end up wearing it 214 00:11:59,640 --> 00:12:04,480 Speaker 3: through it slightly lower pay rise, hopefully a bit of 215 00:12:04,520 --> 00:12:06,800 Speaker 3: give and take. Maybe it's not the full zero point five, 216 00:12:06,880 --> 00:12:11,520 Speaker 3: you know, it's sort of shared a little, but you know, 217 00:12:12,240 --> 00:12:15,360 Speaker 3: basically it's about sort of making that leap. Because the 218 00:12:15,400 --> 00:12:19,120 Speaker 3: way salaries work is that once you're you know, once 219 00:12:19,160 --> 00:12:21,200 Speaker 3: you've adapted to what your salary is. You don't think 220 00:12:21,200 --> 00:12:24,280 Speaker 3: about it, like keep we savers, like income tax, you 221 00:12:24,360 --> 00:12:25,959 Speaker 3: just don't think about it. You get what you get 222 00:12:26,000 --> 00:12:29,040 Speaker 3: and you paypack it. But so much better than income tax, 223 00:12:29,080 --> 00:12:31,040 Speaker 3: which you know, we could say income tax is great 224 00:12:31,040 --> 00:12:34,400 Speaker 3: because it's for building schools and roads. But key we saver. 225 00:12:34,440 --> 00:12:37,000 Speaker 3: It is in your balance. It's your your your account, 226 00:12:37,040 --> 00:12:39,000 Speaker 3: and it's going to be your money eventually, or it 227 00:12:39,080 --> 00:12:40,760 Speaker 3: is there is your money if you ever get into 228 00:12:40,840 --> 00:12:42,800 Speaker 3: terrible trouble and you know that sort of thing, or 229 00:12:42,840 --> 00:12:44,920 Speaker 3: if you could want to use it for a first home. 230 00:12:45,040 --> 00:12:48,680 Speaker 3: So I think it would be wrong to think of 231 00:12:48,720 --> 00:12:52,360 Speaker 3: this as having money taken off you. And if in 232 00:12:52,440 --> 00:12:56,640 Speaker 3: any way, shape or form, you can afford it, do it. 233 00:12:56,760 --> 00:12:59,679 Speaker 3: I appreciate that maybe some people who are just struggling 234 00:13:00,160 --> 00:13:02,800 Speaker 3: and doing it so tough right now that it's pretty hard, 235 00:13:03,640 --> 00:13:06,600 Speaker 3: but you know, it's about breaking that cycle of you know, 236 00:13:06,679 --> 00:13:09,160 Speaker 3: getting out of that position where you're living week to week. 237 00:13:09,280 --> 00:13:12,000 Speaker 2: Well, three point five percent actually seems I mean they 238 00:13:12,040 --> 00:13:14,520 Speaker 2: could have well done four or four point five, right, 239 00:13:14,559 --> 00:13:16,200 Speaker 2: Why did they land at three point five? 240 00:13:16,240 --> 00:13:18,160 Speaker 3: Well, I think they're trying to move in a direction, 241 00:13:18,360 --> 00:13:23,440 Speaker 3: so doing it in increments makes it less painful, but 242 00:13:24,520 --> 00:13:27,040 Speaker 3: they want to move to four and four and then 243 00:13:27,040 --> 00:13:29,400 Speaker 3: there's I don't think it's plugged in yet, but there 244 00:13:29,480 --> 00:13:32,280 Speaker 3: is talk from both major parties of trying to keep 245 00:13:32,320 --> 00:13:34,760 Speaker 3: going and get up to that sex and sex which 246 00:13:34,800 --> 00:13:38,800 Speaker 3: is closer to Australia over time. So you know, I 247 00:13:38,840 --> 00:13:45,000 Speaker 3: wouldn't be surprised if we see more legislation increasing those 248 00:13:45,559 --> 00:13:49,720 Speaker 3: contributions over the next ten years. And again it's just 249 00:13:50,320 --> 00:13:53,480 Speaker 3: the government's sort of the political parties have to hold 250 00:13:53,480 --> 00:13:56,520 Speaker 3: their nerve as well and not think, God, this is 251 00:13:56,520 --> 00:13:58,560 Speaker 3: too tough for employers and people right now, it's going 252 00:13:58,600 --> 00:14:02,800 Speaker 3: to be unpopular because we have whatever crisis it is, 253 00:14:03,000 --> 00:14:06,599 Speaker 3: and you know it won't be this crisis in a 254 00:14:06,640 --> 00:14:07,880 Speaker 3: few years, it'll be something else. 255 00:14:08,240 --> 00:14:11,520 Speaker 2: Well, that's presumably why we're still at about three three 256 00:14:11,520 --> 00:14:15,439 Speaker 2: point five right because of consecutive crises and the government 257 00:14:15,520 --> 00:14:16,760 Speaker 2: not wanting to rock the boat. 258 00:14:16,800 --> 00:14:21,480 Speaker 3: It's also we have a more generous like national super 259 00:14:21,920 --> 00:14:24,840 Speaker 3: than Australia, for example, in some respects like they means test, 260 00:14:24,920 --> 00:14:28,320 Speaker 3: we don't everybody gets it in New Zealand, and so 261 00:14:28,400 --> 00:14:32,200 Speaker 3: we've tended to rely more on on that national super 262 00:14:32,360 --> 00:14:35,040 Speaker 3: I mean, all all the parties that I'm aware of, 263 00:14:35,120 --> 00:14:37,960 Speaker 3: apart from New Zealand first seem to understand that we 264 00:14:38,000 --> 00:14:42,920 Speaker 3: can't afford this long term, and you know, something will 265 00:14:42,920 --> 00:14:45,680 Speaker 3: have to change, whether it's putting up the retirement age 266 00:14:45,800 --> 00:14:50,640 Speaker 3: or means testing the pension, and so you know you 267 00:14:50,640 --> 00:14:52,440 Speaker 3: can bet that is going to change in the next 268 00:14:52,800 --> 00:14:56,800 Speaker 3: ten years or so. And so as a counter to that, 269 00:14:56,840 --> 00:14:58,760 Speaker 3: we want to have New Zealanders with a really good 270 00:14:58,800 --> 00:15:01,080 Speaker 3: buffer in their KI saver accounts. 271 00:15:01,760 --> 00:15:04,840 Speaker 2: So you mentioned the adult minimum wage rate increasing by 272 00:15:04,880 --> 00:15:09,280 Speaker 2: two percent to twenty three dollars ninety five an hour. Also, 273 00:15:09,400 --> 00:15:14,600 Speaker 2: the living wage has increased to twenty nine point ninety 274 00:15:15,080 --> 00:15:16,480 Speaker 2: up from twenty eight ninety five. 275 00:15:16,640 --> 00:15:17,640 Speaker 1: That's a three. 276 00:15:17,400 --> 00:15:21,480 Speaker 2: Point two eight percent increase. Tell me living wage employers 277 00:15:21,520 --> 00:15:24,920 Speaker 2: have until September first to implement these increases. But what 278 00:15:25,040 --> 00:15:27,240 Speaker 2: is the living wage? Who makes it up and who 279 00:15:27,240 --> 00:15:28,120 Speaker 2: buys into it? 280 00:15:28,520 --> 00:15:30,680 Speaker 3: Yeah, it's a it's a conceptual thing in a way. 281 00:15:30,720 --> 00:15:33,240 Speaker 3: It's like it's kind of like it is accredited by 282 00:15:33,280 --> 00:15:38,240 Speaker 3: the government. You join the living wage scheme or concept 283 00:15:38,280 --> 00:15:40,840 Speaker 3: or whatever, and you get you're credited as a living 284 00:15:40,840 --> 00:15:44,479 Speaker 3: wage employer. So there therefore you in order to remain accredited. 285 00:15:44,520 --> 00:15:47,160 Speaker 3: You have to have to meet these changes, but you 286 00:15:47,200 --> 00:15:49,360 Speaker 3: don't have to be a living wage employer. The minimum 287 00:15:49,440 --> 00:15:52,560 Speaker 3: wage is the minimum wage. So in a way, this 288 00:15:52,720 --> 00:15:56,680 Speaker 3: is kind of like I'm just say well, I'm going 289 00:15:56,720 --> 00:15:58,160 Speaker 3: to say that. I'm not going to say it, but 290 00:15:58,240 --> 00:16:00,600 Speaker 3: virtual sigling, I mean, you know, it's saying well, it's 291 00:16:00,600 --> 00:16:01,240 Speaker 3: like a blue tick. 292 00:16:01,280 --> 00:16:02,560 Speaker 1: It's like a rainbow tech. 293 00:16:02,520 --> 00:16:05,080 Speaker 3: For a health tech or getting official health stick on 294 00:16:05,200 --> 00:16:10,040 Speaker 3: your food product or something like that. The government's monitoring it. 295 00:16:10,040 --> 00:16:12,200 Speaker 3: It is a way for you know that the upside 296 00:16:12,200 --> 00:16:14,600 Speaker 3: for employers as it says, we're a good employer, Come 297 00:16:14,600 --> 00:16:16,760 Speaker 3: and work for us. You know, we look after our people. 298 00:16:17,680 --> 00:16:21,120 Speaker 3: And there's a number of big organizations and big corporates 299 00:16:21,120 --> 00:16:26,600 Speaker 3: that do subscribe to their living wage mantra. And yeah, 300 00:16:26,600 --> 00:16:30,720 Speaker 3: so they will, they'll they'll lift that. You know, it's 301 00:16:30,720 --> 00:16:33,840 Speaker 3: pretty good. It's pretty good if you're a kid living 302 00:16:33,840 --> 00:16:35,480 Speaker 3: at home and you work for one of those places 303 00:16:35,480 --> 00:16:37,200 Speaker 3: part time. I got to say, I know some people 304 00:16:37,320 --> 00:16:39,560 Speaker 3: know some kids working for bummings they get a living wage. 305 00:16:39,720 --> 00:16:42,880 Speaker 2: Yeah, yeah, well, and the living wage as well just 306 00:16:43,120 --> 00:16:46,480 Speaker 2: takes into account. It seems in the rise of inflation, 307 00:16:47,600 --> 00:16:50,000 Speaker 2: a lot of companies that are looking at the bottom 308 00:16:50,080 --> 00:16:51,840 Speaker 2: line do not. 309 00:16:53,240 --> 00:16:55,760 Speaker 3: Yeah, I mean, I guess you know, companies will make 310 00:16:55,760 --> 00:16:58,840 Speaker 3: that choice about what the benefits are for them in 311 00:16:58,920 --> 00:17:03,200 Speaker 3: terms of al for workers, for attracting new staff, all 312 00:17:03,240 --> 00:17:06,480 Speaker 3: that sort of stuff. I suppose there's some sense of 313 00:17:07,600 --> 00:17:12,400 Speaker 3: ethical choice in there as well. But yes, and other 314 00:17:12,480 --> 00:17:17,679 Speaker 3: companies are really either they just cannot they think they 315 00:17:17,760 --> 00:17:21,720 Speaker 3: think they can't afford it, or they are employing a 316 00:17:21,720 --> 00:17:24,040 Speaker 3: lot of, like I say, a lot of kids and things. 317 00:17:24,040 --> 00:17:26,400 Speaker 3: So you know you've got your KFC workers and your 318 00:17:26,560 --> 00:17:30,040 Speaker 3: McDonald's workers and things starting out on minimum wage. 319 00:17:30,480 --> 00:17:32,280 Speaker 1: Tell me about crypto tax. 320 00:17:32,600 --> 00:17:35,760 Speaker 2: So there are major changes to New Zealand's crypto tax 321 00:17:35,880 --> 00:17:39,159 Speaker 2: regime coming in from today which will make it effectively 322 00:17:39,440 --> 00:17:44,200 Speaker 2: impossible for investors to avoid declaring their activity. So if 323 00:17:44,240 --> 00:17:48,119 Speaker 2: I'm out here with my crypto wallet buying things and stuff, 324 00:17:48,720 --> 00:17:50,879 Speaker 2: has the government not been able to see what I'm buying? 325 00:17:51,400 --> 00:17:53,600 Speaker 3: Well, no, that's the whole point of crypto. So I'm 326 00:17:53,640 --> 00:17:55,399 Speaker 3: not claiming to be an expert on this either. And 327 00:17:55,440 --> 00:18:01,080 Speaker 3: I guess this is based on what's being done. It's 328 00:18:01,119 --> 00:18:04,320 Speaker 3: an OECD framework, so you know, we're picking up on 329 00:18:04,320 --> 00:18:10,040 Speaker 3: an international framework which says it makes it impossible. It's 330 00:18:10,040 --> 00:18:12,520 Speaker 3: just a little bit skeptical about that because the crypto 331 00:18:12,560 --> 00:18:19,360 Speaker 3: world is all about using this blockchain to avoid detection. 332 00:18:19,520 --> 00:18:23,560 Speaker 3: But yeah, I mean, if they're confident enough to say 333 00:18:23,600 --> 00:18:27,120 Speaker 3: it's impossible, then probably it's very difficult to avoid it. 334 00:18:27,200 --> 00:18:30,840 Speaker 3: And also, you know, unless you're a really sort of nefarious, 335 00:18:30,960 --> 00:18:35,399 Speaker 3: kind of obscure crypto going under the radar, the big ones, 336 00:18:35,440 --> 00:18:38,159 Speaker 3: the bitcoins and the ethereum and all that sort of 337 00:18:38,160 --> 00:18:42,000 Speaker 3: stuff want to be acknowledged and you know, be above 338 00:18:42,040 --> 00:18:46,080 Speaker 3: ground and legitimate in countries they're trading, and so I imagine 339 00:18:46,000 --> 00:18:49,280 Speaker 3: that that's part of it, and so yeah, just to 340 00:18:49,320 --> 00:18:53,399 Speaker 3: make it less of a black market type operation. So 341 00:18:53,680 --> 00:18:57,280 Speaker 3: you know, in their search for legitimacy, crypto currency is 342 00:18:57,320 --> 00:18:59,960 Speaker 3: trying to get away from the idea that it's base 343 00:19:00,560 --> 00:19:05,480 Speaker 3: just for you know, illegal activity and stuff that stuff 344 00:19:05,520 --> 00:19:08,439 Speaker 3: that's sort of outside the eyes of government. So I 345 00:19:08,440 --> 00:19:10,400 Speaker 3: think it's probably a choice to come into the tent 346 00:19:10,480 --> 00:19:13,920 Speaker 3: by some of the major crypto players. And yeah, it's 347 00:19:13,920 --> 00:19:17,440 Speaker 3: been worked out by the OECD. It's an international thing 348 00:19:17,480 --> 00:19:21,200 Speaker 3: and hopefully it works in New Zealand too. 349 00:19:27,720 --> 00:19:33,120 Speaker 5: Electricity bills a rising nationwide line charges are increasing again. 350 00:19:33,160 --> 00:19:37,480 Speaker 5: From today, average households will see a bill increasing by 351 00:19:37,800 --> 00:19:42,560 Speaker 5: about five dollars more every month. There's no single price increase. 352 00:19:43,320 --> 00:19:46,159 Speaker 5: What households will actually see on their power built will 353 00:19:46,280 --> 00:19:49,400 Speaker 5: vary a lot depending on where you live, what plan 354 00:19:49,480 --> 00:19:53,840 Speaker 5: you're on, and what retailer you're with. Some householders will 355 00:19:53,880 --> 00:19:56,680 Speaker 5: see a small increase, some will see a large increase. 356 00:19:57,160 --> 00:20:00,000 Speaker 5: Some are going to be hit by an extra twenty 357 00:20:00,240 --> 00:20:03,480 Speaker 5: dollars a month. Time is that by twelve and see 358 00:20:03,480 --> 00:20:06,040 Speaker 5: if you can afford that? Right now? 359 00:20:07,400 --> 00:20:10,760 Speaker 2: And also from today, LAMB, there'll be new border clearance 360 00:20:10,880 --> 00:20:14,880 Speaker 2: levees for all commercial shipments entering or leaving New Zealand. 361 00:20:14,920 --> 00:20:18,159 Speaker 2: It might mean shopping in New Zealand on online platforms 362 00:20:18,200 --> 00:20:20,760 Speaker 2: like TEAMU or something may become a bit more expensive. 363 00:20:21,480 --> 00:20:22,000 Speaker 1: Why is that? 364 00:20:22,560 --> 00:20:25,879 Speaker 3: Yeah, Well, the official reason for it is just that 365 00:20:26,960 --> 00:20:29,520 Speaker 3: there's more and more of this happening. So the logistics 366 00:20:29,560 --> 00:20:32,399 Speaker 3: of handling all this stuff and processing it by customs 367 00:20:34,880 --> 00:20:37,679 Speaker 3: is getting harder and it's becomes a bigger operation. And 368 00:20:37,720 --> 00:20:41,720 Speaker 3: so this is to cover the costs. Okay, fair enough. 369 00:20:42,880 --> 00:20:46,960 Speaker 3: A potential upside though, and I guess local retailers bricks 370 00:20:47,000 --> 00:20:50,160 Speaker 3: and mortar retailers or people within New Zealand are very 371 00:20:51,520 --> 00:20:56,959 Speaker 3: aware that of the sort of loss of you know, 372 00:20:57,080 --> 00:21:01,320 Speaker 3: income to the likes of TMU, Amazon and so on, 373 00:21:01,359 --> 00:21:04,239 Speaker 3: and so if it actually balances things a little bit, 374 00:21:04,240 --> 00:21:07,960 Speaker 3: I don't think it's it's it's not specifically aimed at 375 00:21:07,960 --> 00:21:11,280 Speaker 3: doing that, but it may just help balance up some 376 00:21:11,320 --> 00:21:13,800 Speaker 3: of the pricing differential. People might look a bit more 377 00:21:13,800 --> 00:21:17,399 Speaker 3: closely at a local competitor or just going down to 378 00:21:17,440 --> 00:21:21,159 Speaker 3: their local shops, you know. But but I guess, you know, 379 00:21:21,200 --> 00:21:25,360 Speaker 3: it's just we see the larger, larger chunk of retail 380 00:21:25,560 --> 00:21:32,159 Speaker 3: is going through these international operations and it's it's not 381 00:21:33,480 --> 00:21:35,400 Speaker 3: you know, it's hard to it can be quite hard 382 00:21:35,440 --> 00:21:37,520 Speaker 3: to see and pick up how much is happening as well, 383 00:21:37,560 --> 00:21:41,760 Speaker 3: if it's not being accounted for by you know, customs 384 00:21:41,760 --> 00:21:44,480 Speaker 3: at the border, we don't see it in the electronic 385 00:21:44,600 --> 00:21:47,960 Speaker 3: cards transaction data, so we don't see, you know, there's 386 00:21:47,960 --> 00:21:49,720 Speaker 3: a big chunk of stuff. We're not seeing how much 387 00:21:50,960 --> 00:21:53,399 Speaker 3: Keiwis are spending. And it's money that leaves the country, 388 00:21:53,440 --> 00:21:55,840 Speaker 3: you know, one way or the other. It doesn't get 389 00:21:55,840 --> 00:21:59,960 Speaker 3: handled inside and you know, help boost our retail sect 390 00:22:00,119 --> 00:22:00,960 Speaker 3: and all that sort of stuff. 391 00:22:01,359 --> 00:22:03,159 Speaker 2: Yeah, and I suppose Timu's the one that we talk 392 00:22:03,200 --> 00:22:05,440 Speaker 2: about the most when it comes to these border changes, 393 00:22:05,480 --> 00:22:08,639 Speaker 2: because it looks like goods worth one thousand dollars or 394 00:22:08,720 --> 00:22:12,040 Speaker 2: less will attract charges of two dollars twenty one for 395 00:22:12,160 --> 00:22:16,200 Speaker 2: air freight, two dollars nine cents for sea freight, while 396 00:22:16,280 --> 00:22:20,359 Speaker 2: inward international mail will be one dollar twenty eight per 397 00:22:20,440 --> 00:22:20,959 Speaker 2: kilo home. 398 00:22:21,040 --> 00:22:22,800 Speaker 1: Basically, if you're buying. 399 00:22:22,560 --> 00:22:27,280 Speaker 2: A two dollar potato peeler from TIMU, because it's two dollars, 400 00:22:27,480 --> 00:22:29,119 Speaker 2: it's now got doubling in price. 401 00:22:29,480 --> 00:22:32,919 Speaker 3: And look if someone in an office somewhere has to 402 00:22:33,000 --> 00:22:35,679 Speaker 3: process something related to that, even if it's just pushing 403 00:22:35,960 --> 00:22:38,320 Speaker 3: pushing a button, just the sheer volume of it, you 404 00:22:38,320 --> 00:22:42,879 Speaker 3: can understand why there's there's a cost aspect. Yeah, I 405 00:22:42,920 --> 00:22:46,960 Speaker 3: don't think it's it's designed to be especially punitive towards 406 00:22:47,040 --> 00:22:49,240 Speaker 3: it's what they call low you know, it's sort of 407 00:22:49,440 --> 00:22:52,879 Speaker 3: low value exports. It's aimed at individuals buying and stuff 408 00:22:52,920 --> 00:22:56,600 Speaker 3: directly rather than people buying goods to on sale in 409 00:22:56,640 --> 00:22:57,119 Speaker 3: New Zealand. 410 00:22:58,160 --> 00:23:01,520 Speaker 2: And lastly, Lamb, I understand at the government's coming up 411 00:23:01,520 --> 00:23:07,119 Speaker 2: with an announcement to alleviate cost of living pressures. Basically 412 00:23:08,160 --> 00:23:12,600 Speaker 2: giving cat owners fifty dollars a week to spend it 413 00:23:13,000 --> 00:23:16,240 Speaker 2: locally in their local pet stop or animates. 414 00:23:16,280 --> 00:23:16,960 Speaker 1: What do you think of that? 415 00:23:18,240 --> 00:23:20,720 Speaker 3: I'm just looking at the time. You know, there's a thing, 416 00:23:22,080 --> 00:23:27,520 Speaker 3: is there April Fool's flos to finish at twelve? Oh yeah, 417 00:23:27,640 --> 00:23:29,840 Speaker 3: it sounds quite good. I mean as a cat owner. 418 00:23:29,920 --> 00:23:33,320 Speaker 3: Yeah yeah, I mean why not? But well, I mean 419 00:23:34,640 --> 00:23:39,080 Speaker 3: with probably like if you're talking about economic incentives more cats, 420 00:23:39,440 --> 00:23:42,439 Speaker 3: there's a native birds thing. It's very controversial. 421 00:23:43,000 --> 00:23:49,120 Speaker 1: Yeah, yeah, yeah, thanks for joining us, Liam cheers. That's 422 00:23:49,160 --> 00:23:51,600 Speaker 1: it for this episode of the Front Page. 423 00:23:51,920 --> 00:23:55,280 Speaker 2: You can read more about today's stories and extensive news 424 00:23:55,320 --> 00:23:59,040 Speaker 2: coverage at enzid Herald dot co dot enz The Front 425 00:23:59,080 --> 00:24:03,119 Speaker 2: Page is hosted produced by me Chelsea Daniels. Caine Dickey 426 00:24:03,400 --> 00:24:07,359 Speaker 2: is our studio operator, Richard Martin, our producer and editor, 427 00:24:07,600 --> 00:24:10,320 Speaker 2: and our executive producer is Jane Ye. 428 00:24:10,640 --> 00:24:13,560 Speaker 1: Follow the Front Page on the iHeart app or wherever 429 00:24:13,600 --> 00:24:16,720 Speaker 1: you get your podcasts, and join us next time for 430 00:24:16,760 --> 00:24:19,080 Speaker 1: another look beyond the headlines.