Meanwhile ok(ish) business confidence survey yesterday, Employment intentions improved the most, own activity outlook up a bit. Wouldn’t call it a strong inflection point but it’s slightly better than before… it’s certainly a more relevant forward indicator than an inaccurate historical GDP number.
Politics 🗳️ NZ Politics
- Thread starter wizard of Tauranga
- Start date
NZWarriors.com
It would be interesting to see the spread of wealth by age as well. As we have an aging population and you accumulate more as grow older, is that one of the factors driving the numbers?What you need to be among New Zealand’s richest people
What counts as a “one percenter” in New Zealand these days?
The “1%” is often used as shorthand for the wealthiest people on the planet.
Last week, Stats NZ released updated net worth data that gives the opportunity to see what that looks like in NZ now.
Net worth is calculated as a measure of everything a person or household owns, minus their debts.
Here’s how it breaks down.
To be in the top 50%:
For households: At least $524,788
For individuals: At least $134,850
For the top 10%:
For households: At least $2.414 million
For individuals: At least $1.226m
For the top 5%
For households: At least $3.718m
For individuals: At least $1.883m
For the top 1%
For households: At least $8.727m
For individuals: At least $4.735m
The median wealth of a 1% individual is $7.191m, and for a household it is $11.5m. That means half the one percenters have wealth below that level, and half are worth more than that.
Three years earlier, the median for a 1% household was $11.2m.
In the year ended June 2024, the median net worth of all NZ households was $529,000. This was 33% higher than in the year ended June 2021, when the median household net worth was $399,000.
Infometrics chief executive Brad Olsen said it was “confronting” that the median wealth of a top 1% household was 22 times that of all households.
He said the top 50% had 93.3% of all household wealth.
The wealthier a household was, the less of their assets were tied up in owner-occupied real estate. The wealthiest 20% had more than twice as much in pension funds as the next 20%, and eight times as much as the poorest 20%.
The increase in property values between 2021 and 2024 was one of the factors cited by Stats NZ as driving the overall increase in household wealth through that period but sharemarkets have also performed strongly.
“A median household would have basically nothing in bonds, stocks, that sort of thing. But quintile five, the top 20% – 18% of their assets are coming from stocks, bonds,” Olsen said.
The middle group of households had 92% of their wealth in their own home.
“If you think about three groups in society – those that don’t have any substantial assets, don’t have any property or shares or anything, they haven’t shifted much at all over the last decade,” Olsen said.
“The most wealthy group has property and other investments and the middle group has more property than anything else, as property has increased in value the gap has become a bit smaller between the middle wealthy and the super wealthy.”
He said people should not think that $11.5m was the top of the wealth table in NZ, either. “There’s quite a long tail, we’ve got some households worth over $1 billion, not many but there is a long tail from $11.5m out to there.”
Council of Trade Unions policy director Craig Renney said the data showed 80% of people had wealth of less than $1m. “It doesn’t appear as if the problems facing NZ in terms of wealth distribution have moved at all.”
He said someone at the 40th percentile would have wealth of about $128,000. If both they and someone with wealth of $11.5m received 5% returns on their wealth each year, the person at the 40th percentile would grow their wealth by $6400 a year while the median richest one percenter would add more than $575,000.
He said that was one reason that his organisation called for a capital gains tax. A lot of the wealth in the richest households would come from capital gains. “Our tax settings on capital are probably helping to do that.”
He said most people’s wealth was in family homes that would not be affected by a tax.
“We have a very unequal society in NZ and the distribution of wealth is causing huge challenges – those who are able to accrue wealth are able to get even more of it in the future.”
-RNZ
What it takes to be in New Zealand’s top 1% of wealth
A household now needs at least $8.7m to be classed among the top 1%.www.nzherald.co.nz
What Craig Renney is forgetting to mention is that if the 5% he using in his example were subject to a 30% CGT, the person with the $128,000 Net Wealth would be hit with an additional $1,520 in tax, meaning the person with the $128,000 is even worse off and has little to no chance of ever closing the gap. Put is this way, at 5%, it would take just over 14 years for the person with $128,000 for their wealth to double with the help of compounding interest and the 72 Rule. With a 30% CGT, that 14 years has jumped out to near 20 and 1/2 years.... not bad you think. But if inflation averaged 3%, adding a CGT to the effect, and even once the money has doubled, inflation has destroyed the value of the money anyway.
What's also really bad is he's comparing the 40th percentile of an individual's net worth ($128,000) to the median 1% household net worth of $11.5m but saying that's the median net worth of an individual..... he's using a household net worth figure for one and an individual for another. That's manipulating the figures to try and gain support.... pretty much like National and the monetary holes in the proposed "budget" a few elections ago.
The CTU.... this is who they are.... wanting to take money from the rich but hurting everyone else in the process.... all for an ideology. This is what happens when you want a tax of envy!!!!
We're also hearing this morning, again from Reeney, and along with the likes of Hickey, that a CGT would stop the need for adjusting Super entitlements.... think the Treasury paper which has suggested that the age for Super be raised each year until it reaches 72 (okay for office workers but what about tradies, farmers, factory workers who won't be able to keep going). As we keep hearing, NZ is one of the only countries in the OECD without a CGT.... but countries with one are also worried about having to pay for their older generations as they retire. Sorry to disappoint you BUT a CGT isn't going to close the gap. Prove? The OECD countries which have one....
United Kingdom
- Pension strain: Ageing population and underperforming pension funds are eroding retirement security.
- Capital gains tax: CGT applies at 10–20% beyond annual exemptions.
- Article: Campaign for a Million – UK tax impact on pensions
United States
- Pension strain: Public pension liabilities are ballooning, especially at state and municipal levels.
- Capital gains tax: Federal CGT ranges from 0–20%, with additional state-level taxes.
- Article: World Economic Forum – Global pension crisis
France
- Pension strain: High dependency ratio and generous pension promises are unsustainable.
- Capital gains tax: CGT applies to most investment gains, with social contributions added.
- Article: Campaign for a Million – France’s tax burden
Italy
- Pension strain: One of Europe’s most rapidly ageing populations; pension reforms are politically difficult.
- Capital gains tax: CGT applies to financial assets, with rates around 26%.
- Article: Campaign for a Million – Italy’s pension-tax dilemma
Japan
- Pension strain: Shrinking workforce and extreme longevity are stressing the system.
- Capital gains tax: CGT applies to securities and property gains.
- Article: World Economic Forum – Japan’s pension outlook
Would like to hear arguments why the % change in our currency against other currencies is not a good indication of how the country is performing.
In the past 12 months the NZD relative to other currencies has fallen as follows:
USD 7.7% AUD 3.7% GBP 8.9% EUR 13.1% JPY 5.1% SGD 7.6%
In the past 12 months the NZD relative to other currencies has fallen as follows:
USD 7.7% AUD 3.7% GBP 8.9% EUR 13.1% JPY 5.1% SGD 7.6%
NZWarriors.com
From an earlier RadioNZ article, they only included two age demographics....
Individual net worth increased with age.
Those aged 15 to 24 had the lowest median, at $4000.
People aged 75 and over had the highest median, at $590,000.
Feeling wealthier? Here's how much household net worth has lifted
Stats NZ has released its latest household net worth data for the three years to June 2024.
www.rnz.co.nz
Globally kids now more likely to be obese than starving. Dam capitalism and its abundance
www.abc.net.au
Finding of more obese yet malnourished kids reignites junk food debate
UNICEF says more children are now overweight and under-nourished than too thin, stirring fresh calls by health experts and farming bodies to tax ultra-processed food producers.
www.abc.net.au
Leftists after Keynes gets proved right again
NZWarriors.com
Who's fault is it that they're obese yet under-nourished? Neoliberals.Globally kids now more likely to be obese than starving. Dam capitalism and its abundance
Finding of more obese yet malnourished kids reignites junk food debate
UNICEF says more children are now overweight and under-nourished than too thin, stirring fresh calls by health experts and farming bodies to tax ultra-processed food producers.
sounds like something a communist would say before seizing the methods of production
I think Top8's gone on holiday, probably on his private island watching his Julie Andrews collection
NZWarriors.com
- Thread starter
- #19,890
It’s been suspiciously calm here… It feel like a parallel universe where conversations stay on track!
I almost miss the random detours into conspiracy theories… almost
.Always on holiday these Greens voters, he has nearly as many holidays as you WizIt’s been suspiciously calm here… It feel like a parallel universe where conversations stay on track!
I almost miss the random detours into conspiracy theories… almost
Mate, Wiz is from the Mount…. Everyday’s a holiday down there
NZWarriors.com
I don’t think he’s posted since Wiz & Inruin double teamed the poor lad 3 pages back haha
Think he's taking his 10 weeks accrued leave before Brookes new bill comes in
The Greens only allocate him a certain amount of time per website to post their propaganda. He is well over his limit for this one
NZWarriors.com
Let's crack open the champagne team.Globally kids now more likely to be obese than starving. Dam capitalism and its abundance
Finding of more obese yet malnourished kids reignites junk food debate
UNICEF says more children are now overweight and under-nourished than too thin, stirring fresh calls by health experts and farming bodies to tax ultra-processed food producers.
More kids are obese yet malnourished than starving. Such great news for our Thursday.
You are right, we'd be doing much better if retarded parents stop feeding their kids dogshit. But that's a personal accountability thing and we know how allergic to that your ilk is.
You’re right, it is largely a parenting issue, but also largely too is a cost issue. I would probably lean towards a subsidy on the recommendation of the foods put forward by those with the knowledge than a tax on sugary foods, but both should probably be in the table. I lean towards the subsidy because you’re giving the option and it really falls back on the parent again to make the right choices. Unfortunately too it also can come down to a moaning child that wants the nice tasting things like myself and you lose all your first teeth at a young age which is another big issue
NZWarriors.com
It’s an IQ and laziness problem not a cost problem.
I could agree with a lack of knowledge around what are the correct foods due to contested views, but nothing to do with iq or knowingly harming them due to laziness. Plenty of supposedly smart people eat shit food
