Christopher Luxon, New Zealand Prime Minister 2023

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Forums › Politics › Christopher Luxon, New Zealand Prime Minister 2023

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#3206282 14-Mar-2024 11:14

itxtme:

sir1963:

Lots of hair dresses , lawn mowing businesses, arts/craft makers, domestic cleaners, and others working from home had them too, as did a friend who plays the organ at funerals. Basically anyone who had a small work from home business had an LAQC. They all STILL claim for home office expenses etc etc etc. The smart ones also have trusts so if the businesses goes broke their home is still protected.

The builder I use for repairs has his "workshop" at home, claims for that (mortgage, power, insurance , etc etc etc on a percentage basis). Gets depreciation on his work vehicles, claims the GST back on everything he uses including petrol, gets trade rates from all sorts of wholesalers that are not his trade related (plumbing, electrical, etc).

But, as my Dad said...if it's so great, you do it, nothing is stopping you having a go. I know a number of people who set up a business who lived of their wife's income until they got established. Some even got housing assistance, community services card, etc, etc because their home income was so low.

If you spent less time worrying about what others are doing, you will have more time thinking about what you could do to improve your lot.

This is why I cant take you seriously, because your attitude is so inward you cannot fathom why the IRD got rid of them. At least now assumedly you will have to pay some PAYE.

I have been, since age 7, I am now over 60 and I have had some form of paid employment every year in between.

I was a working solo dad who spent 50% of his take home pay on after school care, financially I would have been better off on the DPB.

I have been on the bones of my A$$, close to bankruptcy because of it.

However, there is STILL as class of company where the money never comes near your wages so you pay $0 extra PAYE, and business taxes are LOWER than PAYE ones. And this is where all the small work from hone businesses have moved to.

But I have never looked outwards and demanded someone else give me what they have earned.

Envy is a horrible colour.

elpenguino

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#3206284 14-Mar-2024 11:14

sir1963:

Its a legitimate business deduction that EVERY business gets.

I hope you and other landlords enjoy your tax deduction. Shame the government cant pay for services like health and police but ah well, priorities eh?

https://www.stuff.co.nz/nz-news/350211448/former-kiwi-cop-says-jumping-ditch-aussie-best-decision-he-ever-made

I wonder how this government will tough on crime when cops are packing their bags for higher pay in Oz?

Maybe wannabe tough guy mark mitchell will take patches off gang members himself?

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

elpenguino

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#3206285 14-Mar-2024 11:15

sir1963:

Envy is a horrible colour.

You're confusing it with anger.

Most of the posters in this thread are just like chimpanzees on MDMA, full of feelings of bonhomie, joy, and optimism. Fred99 8/4/21

Ge0rge

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#3206288 14-Mar-2024 11:24

elpenguino:
sir1963:

Its a legitimate business deduction that EVERY business gets.

I hope you and other landlords enjoy your tax deduction. Shame the government cant pay for services like health and police but ah well, priorities eh?

https://www.stuff.co.nz/nz-news/350211448/former-kiwi-cop-says-jumping-ditch-aussie-best-decision-he-ever-made

I wonder how this government will tough on crime when cops are packing their bags for higher pay in Oz?

Maybe wannabe tough guy mark mitchell will take patches off gang members himself?

Meh, for every person who thinks it's greener, there's another who doesn't- work with a kiwi cop who went to Aussie as a cop for a couple of years and hated it, back in NZ now and much happier. One Stuff story a mass exodus does not make.

itxtme

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#3206295 14-Mar-2024 11:58

sir1963:

I have been, since age 7, I am now over 60 and I have had some form of paid employment every year in between.

I was a working solo dad who spent 50% of his take home pay on after school care, financially I would have been better off on the DPB.

I have been on the bones of my A$$, close to bankruptcy because of it.

However, there is STILL as class of company where the money never comes near your wages so you pay $0 extra PAYE, and business taxes are LOWER than PAYE ones. And this is where all the small work from hone businesses have moved to.

Envy is a horrible colour.

If you were paying PAYE while running LAQC then you were not doing it right. I think you misunderstand the tax system, as an individual cannot spend that money on whatever they like if they pay company tax, although they would get personal imputation credits, the difference still needs to be paid to take the money "out".

Anyway we are far away from the point of this conversation which is that its a bad National policy and a backwards step for home affordability and equity in our society.

EDIT: thought I would add I am not wholly against interest deductibility however this should be offset by an increase in supply, which successive governments have proven is impossible for them to achieve. So this was the next best thing.

sir1963

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#3206297 14-Mar-2024 11:58

elpenguino:

sir1963:

Its a legitimate business deduction that EVERY business gets.

I hope you and other landlords enjoy your tax deduction. Shame the government cant pay for services like health and police but ah well, priorities eh?

https://www.stuff.co.nz/nz-news/350211448/former-kiwi-cop-says-jumping-ditch-aussie-best-decision-he-ever-made

I wonder how this government will tough on crime when cops are packing their bags for higher pay in Oz?

Maybe wannabe tough guy mark mitchell will take patches off gang members himself?

ROTFLMAO...

Did you know a lot of university staff with PhDs get paid less than primary school teachers and police.

mean while the large international corporations pay no where near the tax they should be

How about the millions we waste paying medical costs for tourists who need help in hospitals and never pay their bills.

How about the 1Billion waste on reorganising polytechs instead of funding them properly

We will be spending hundreds of millions cleaning up an abandoned oil drilling site because they "went bankrupt", ie had a (no pun intended) shell company with no assets

How about the massive subsidy for the aluminium smelter power, when we could ALL be getting cheaper power

What about the billions we will be spending on roads, not rail

What about refusing to pay for school lunches while spending $150,000 a year to keep people in prison, rather than prevent it.

you are barking up the wrong tree.

sir1963

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#3206299 14-Mar-2024 12:04

itxtme:

sir1963:

I have been, since age 7, I am now over 60 and I have had some form of paid employment every year in between.

I was a working solo dad who spent 50% of his take home pay on after school care, financially I would have been better off on the DPB.

I have been on the bones of my A$$, close to bankruptcy because of it.

However, there is STILL as class of company where the money never comes near your wages so you pay $0 extra PAYE, and business taxes are LOWER than PAYE ones. And this is where all the small work from hone businesses have moved to.

Envy is a horrible colour.

If you were paying PAYE while running LAQC then you were not doing it right. I think you misunderstand the tax system, as an individual cannot spend that money on whatever they like if they pay company tax, although they would get personal imputation credits, the difference still needs to be paid to take the money "out".

Anyway we are far away from the point of this conversation which is that its a bad National policy and a backwards step for home affordability and equity in our society.

I had an accountant. And like any business I paid tax on the profits some years and the "loss" years only amounted to hundreds of dollars.

The ONLY solution has always been build more.

Per head of population were are building 1/2 the number we did in the 1970's

And lots of Tradies have headed to Australia too, and make a lot more money doing it. I have friends and family over there who are now Australian citizens.

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

sir1963

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#3206302 14-Mar-2024 12:07

elpenguino:

sir1963:

Envy is a horrible colour.

You're confusing it with anger.

Yeah..nah.

SaltyNZ

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#3206303 14-Mar-2024 12:10

itxtme:

EDIT: thought I would add I am not wholly against interest deductibility however this should be offset by an increase in supply, which successive governments have proven is impossible for them to achieve. So this was the next best thing.

That was the whole point of the last change: interest deductibility still remained for new builds. It was only removed for people who were just trading existing houses between them.

So the change was to discourage the useless trading pushing up house prices to do nothing except make it harder and harder for people who want to buy a home to live in, and rather encourage new builds to increase supply.

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sir1963

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#3206319 14-Mar-2024 13:05

SaltyNZ:

itxtme:

EDIT: thought I would add I am not wholly against interest deductibility however this should be offset by an increase in supply, which successive governments have proven is impossible for them to achieve. So this was the next best thing.

That was the whole point of the last change: interest deductibility still remained for new builds. It was only removed for people who were just trading existing houses between them.

So the change was to discourage the useless trading pushing up house prices to do nothing except make it harder and harder for people who want to buy a home to live in, and rather encourage new builds to increase supply.

The math did not add up

On a $500,000 mortgage @6% the interest alone is $30,000, or $600 a week, and that is with a 30% deposit on a $750k house.

Add on rates, insurances etc etc etc.

Unless you could go in cash up front, at which point the interest was not an issue anyway.

Meantime https://www.newshub.co.nz/home/new-zealand/2024/03/new-zealand-s-net-migration-hits-new-record.html

Annual net migration to New Zealand hit a record 133,800 in the past year, new data shows.

If we allow for an average 4 people per house, that is over 30,000 new houses that would need to be built in the last 12 months, never mind natural population growth, divorces, existing stock being replaced, fire, storm damage etc.

SaltyNZ

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#3206322 14-Mar-2024 13:11

sir1963:

The math did not add up

On a $500,000 mortgage @6% the interest alone is $30,000, or $600 a week, and that is with a 30% deposit on a $750k house.

Add on rates, insurances etc etc etc.

Unless you could go in cash up front, at which point the interest was not an issue anyway.

Meantime https://www.newshub.co.nz/home/new-zealand/2024/03/new-zealand-s-net-migration-hits-new-record.html

Annual net migration to New Zealand hit a record 133,800 in the past year, new data shows.

If we allow for an average 4 people per house, that is over 30,000 new houses that would need to be built in the last 12 months, never mind natural population growth, divorces, existing stock being replaced, fire, storm damage etc.

Yes but you have tenants paying your mortgage for you and rent is based on the landlord's costs rather than whatever number the landlord feels like it should be so it shouldn't matter that interest is $600 a week, especially when you can deduct it from your taxes after the tenant pays for it.

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sir1963

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#3206330 14-Mar-2024 13:32

SaltyNZ:

Yes but you have tenants paying your mortgage for you and rent is based on the landlord's costs rather than whatever number the landlord feels like it should be so it shouldn't matter that interest is $600 a week, especially when you can deduct it from your taxes after the tenant pays for it.

And when I use trades, I get to pay for a portion of all their expenses including their mortgages. That is how the economy works.

So 30k interest

Now add on

3k rates

3k insurance

allow for 1% Repairs and Maintenance ( about 7K)

1k for the accountant

allow for the 10k interest they could have made just by putting the 250k money in the bank

we are now up to 44K or $846, a week in expenses without any capital repayments (500k over 25 years is 20,000 or $400 a week)

Capital payments are not tax deductible , they are considered profit , however you dont feed a family on that, the bank gets it, not the landlord.

So at best with tax deductions, zero profit, zero capital repayments you are looking at $650 a week which leaves the landlord paying out $400 a week for the capital repayments, zero income from the deposit paid

As I said, the maths do not add up.

And I am basing that off a new build here in Palmy, Auckland with higher prices makes it even worse.

SaltyNZ

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#3206342 14-Mar-2024 14:10

I guess we should just ban landlords altogether then, because the ones playing pass the mouldy house aren’t contributing anything of value to society, so if they won’t build new houses, what are they good for?

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sir1963

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#3206347 14-Mar-2024 14:31

SaltyNZ: I guess we should just ban landlords altogether then, because the ones playing pass the mouldy house aren’t contributing anything of value to society, so if they won’t build new houses, what are they good for?

So no maths.

And equating all landlords as being bad ones is, I hope, below you.

SaltyNZ

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#3206350 14-Mar-2024 14:57

No, not all landlords. The ones building new houses are providing a valuable service. The other ones are just pushing house prices up by holding onto property to charge other people to use who probably would have preferred to own it themselves.

By all means don’t build a house if the maths doesn’t stack up. But don’t pretend that owning a house that someone else could buy to live in themselves is some charitable service to society. It’s not; you’re doing it to make money. Nothing wrong with wanting to make money - but you can’t have it both ways. You’re either a business or a charity. Why should anyone pat you on the back for being a business?

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