Labour / NZ First Government

[Baa_Baa]

When I buy it gets sent to a US address and shipped to NZ from there.

When I buy it usually gets shipped free of charge direct to my NZ address, all the way from China. Arrives in 7-10 days (on average) at massive discount to retail NZ, with complete transparency on the shipping/delivery process (as good as Apple tracking for those who have enjoyed that experience) - tracked online. Totally reliable so far in my experience.

Here's a recent example:

Windscreen wipers for my motor.
- $NZ127 each from my local mechanic. Screw that.
- $NZ44.99 each from Supercheap Auto. Screw that too!
- $US13 for both wipers from AliExpress, expertly packaged, arrives in 7-10 days, free shipping.

Wake up NZ. There's a whole world of online retail competition out there that makes us local yokels look like fools paying landed goods plus marked up prices from destination, or (sadly) even local online retail, when the source is supplying at massive discount, direct with no freight charges, with no restriction on volume orders (i.e. buy one or a few ,000 or a million if you want) , with reasonable delivery times and NO GST.

You think these online retailers are going to voluntarily collect NZ GST on every purchase and pay that back to the NZ IRD? Lol, good luck on that ... let alone the zillions of other online retailers worldwide who frankly don't give a sh1t about NZ tax laws and certainly won't voluntarily be a tax collector for the NZ government .. because they don't have to, don't want to and don't need to.

This online GST collection idea is the worst example or poorly thought out legislation that I'm aware of. Labour are clutching at straws trying to raise a few paltry millions of tax revenue while demonstrating their complete and utter ignorance of global ecommerce trade or cross-border legislative rights (they have none) to enforce them, let alone the local administrative cost of trying to impose and administer these non-enforceable compliance regulations.

Goodness gracious, this is such fallacious ignorance, it beggars belief that a millennium led government would even begin to consider it viable, workable or implementable ... let alone the ignorant proposition that international online retailers (worldwide) could be swept into the net of compliance, invest in making their systems accomodate NZ law, ... and pay that GST collection back to the NZ IRD. Good grief, what is Labour thinking! I don't care what government makes these stupid ill-informed decisions, it's just madness.

This is a globally embarrassing and ignorant episode from the Labour government, ill thought out, unimplementable, and totally unenforceable.

[Joshuatree]

GREAT STUFF!
Retail NZ welcoming this

Unity Books"Today's announcement's absolutely outstanding news for the whole of the retail sector in New Zealand."

"Retail New Zealand public affairs manager Greg Harford told Morning Report the announcement would be "very good news indeed for the sector".

National not opposing this.

"Levelling the playing field is certainly not a silver bullet for the retail industry in New Zealand but it will of course take away a competitive disadvantage that had long been faced by Kiwi retailers" - Retail New Zealand public affairs manager Greg Harfordduration 4′ :16″

[fungus pudding]

A former Labour MP's thoughts on the current Govt.

https://www.noted.co.nz/currently/pr...rn-government/

[Vagabond47]

You think these online retailers are going to voluntarily collect NZ GST on every purchase and pay that back to the NZ IRD? Lol, good luck on that ... let alone the zillions of other online retailers worldwide who frankly don't give a sh1t about NZ tax laws and certainly won't voluntarily be a tax collector for the NZ government .. because they don't have to, don't want to and don't need to.

Then their packages get stopped at the border till the customer coughs up the GST and no doubt an extortionate processing fee. Can't see that being great for customer satisfaction. Or sent back if the importer (the customer) refuses to pay the GST as happened with the swedes when they put VAT on lower value packages.

It'll be up to these companies whether they decide to collect the GST and pass it on, or simply to stop sending stuff to NZ customers if the hassle of dealing with customs or customers becomes too great. If they send enough to NZ it might be worth their while to setup online GST.

[minimoke]

GREAT STUFF!
Retail NZ welcoming this

Unity Books"Today's announcement's absolutely outstanding news for the whole of the retail sector in New Zealand."

"Retail New Zealand public affairs manager Greg Harford told Morning Report the announcement would be "very good news indeed for the sector".

National not opposing this.

"Levelling the playing field is certainly not a silver bullet for the retail industry in New Zealand but it will of course take away a competitive disadvantage that had long been faced by Kiwi retailers" - Retail New Zealand public affairs manager Greg Harfordduration 4′ :16″

Sad excuse for a way of propping up an industry that doesnt know how to sell.

[BlackPeter]

Sad excuse for a way of propping up an industry that doesnt know how to sell.

Typical Labour: Punish the performers and reward (subsidize) the non-performers. No surprises here ...

[minimoke]

So whats going to happen with Labours "Negative Gearing" policy. Seems to me there are quite a few Mom and Pop investors who are negatively geared (expenses exceed income) today so as to provide a income for the future. And you also have people with larger portfolios who are likely to be positively geared over their entire property portfolio.

Sp the mom and pops, loosing the tax calculation will have to cover the difference themselves. Or they will put rents up. Or they will have to sell up. In which case there will be a minor surge on the property supply side which may see property values decrease. Given the houses are likely not "affordable" the positively geared owners will buy up these properties, reducing competitions and driving up rents. Thats short term.

Medium term rents will go up faster than wages so govt will need to increase Working For Family, Accommodation Supplement or Minimum wage.

As government payments increase at a faster rate than the negative gearing offset taxes will have to rise or government services will need to increase. Increase in minimum wage will see employers mover more to automation which will see les employment amongst renteers.

Long term current negatively geared property owners wont have the retirement income they planned, leaving a shortfall which will see them voting for a Government that increase the pension.

But on the bright side. Proper investment wont be such an attractive option. So those with cash will look for alternative investments. The Share Market being an obvious choice. Increased demand will see an increase in share prices. Given I am out of rentals and more into stocks I think I will have to support this policy. My shares will increase in value and by the time I retire I'll get a bigger penison. Win / Win as far as I can see.

[fungus pudding]

So whats going to happen with Labours "Negative Gearing" policy. Seems to me there are quite a few Mom and Pop investors who are negatively geared (expenses exceed income) today so as to provide a income for the future. And you also have people with larger portfolios who are likely to be positively geared over their entire property portfolio.

Sp the mom and pops, loosing the tax calculation will have to cover the difference themselves. Or they will put rents up. Or they will have to sell up. In which case there will be a minor surge on the property supply side which may see property values decrease. Given the houses are likely not "affordable" the positively geared owners will buy up these properties, reducing competitions and driving up rents. Thats short term.

Medium term rents will go up faster than wages so govt will need to increase Working For Family, Accommodation Supplement or Minimum wage.

As government payments increase at a faster rate than the negative gearing offset taxes will have to rise or government services will need to increase. Increase in minimum wage will see employers mover more to automation which will see les employment amongst renteers.

Long term current negatively geared property owners wont have the retirement income they planned, leaving a shortfall which will see them voting for a Government that increase the pension.

But on the bright side. Proper investment wont be such an attractive option. So those with cash will look for alternative investments. The Share Market being an obvious choice. Increased demand will see an increase in share prices. Given I am out of rentals and more into stocks I think I will have to support this policy. My shares will increase in value and by the time I retire I'll get a bigger penison. Win / Win as far as I can see.

I'm not sure how anyone can pay tax on money they haven't made. To disallow amalgamation of profits and losses goes against normal accounting practice.

[777]

I'm not sure how anyone can pay tax on money they haven't made. To disallow amalgamation of profits and losses goes against normal accounting practice.

Just means carrying your losses forward to future years. Should have been done years ago.

[minimoke]

Just means carrying your losses forward to future years. Should have been done years ago.

Assuming a Mom and Pop doesn't mind carrying a loss (not me - I like profit and don't mind paying my tax on it), how are they going to recoup these losses?