Labour continues to deliver complex policies, that may have good intentions, but that in reality add extra layers of bureaucracy and cost to our country and slows progress to below that of a snail.
To recap, there is KiwiSaver, which will compel employers to contribute an additional 4% of salaries to the KiwiSaver programme. Secondly there is the Regional Roading Tax for Auckland and Wellington.
Both of these will have a huge affect on the profitability and compliance costs for any Transport and Logistics business, and both have huge positives and negatives to them.
Nothing is simple!
KiwiSaver will be a huge administrative nightmare for business and rather than just give tax cuts or making contributions tax free they are giving tax credits. How confusing to the average person!
As for the tax on fuel to cover roading in Auckland and Wellington. Labour have told the councils they must consult extensively with the public about where they spend the money. This means the money won’t start being collected for another 15 – 18 months.
Auckland and Wellington need roads now, not 5 years of consultation and happy talk.
Councils need the ability to lead, not get caught up in consultation and RMA’s.
For more simple summaries of the budget from treasury click the below links: