2020 Annual Review - New Zealand Taxpayers' Union

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

The global pandemic is not over yet and the economic crisis has only just begun.

We can’t allow big spending orthodoxy to take hold.

1

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

About the Taxpayers’ Union The Taxpayers’ Union is a notfor-profit citizens’ group founded

by David Farrar and Jordan Williams in 2013. The group’s mission, Lower Taxes, Less Waste, and More Transparency, enjoys the support of more than 65,000 registered members and supporters as of November 2020.

The Taxpayers’ Union maintains an office a few hundred metres from Parliament on Wellington’s Lambton Quay, where staff also provide administrative

support to its sister group the Auckland Ratepayers’ Alliance (refer to page 27 & 28) and one-off campaigns such as the ‘Campaign for Affordable Home Ownership’ – which successfully pushed the Prime Minister to rule out the Greens’ proposed tax on assets.

The Taxpayers’ Union fields dozens of interviews and media requests for comment every month. This is in addition to holding press conferences and issuing regular media releases,

commentaries, online postings and publications to advocate on behalf of taxpayers. Taxpayers’ Union representatives speak at functions, make presentations to government, meet with politicians and organise petition drives, events and campaigns to mobilise citizens to effect public policy change.

Any New Zealand taxpayer committed to the Union’s mission is welcome to register as a supporter at no cost.

New Zealand Taxpayers’ Union Incorporated (04) 282 0300 team@taxpayers.org.nz www.taxpayers.org.nz facebook.com/taxpayersunion @TaxpayersUnion

Level 4 117 Lambton Quay Wellington 6011 PO Box 10518 The Terrace Wellington 6143

Auckland Ratepayers’ Alliance (09) 281 5172 team@ratepayers.nz www.ratepayers.nz facebook.com/ratepayersalliance @AkldRatepayers

Level 17 55 Shortland Street Auckland 1010 PO Box 133-099 Eastridge Auckland 1146

The New Zealand Taxpayers’ Union is a member of World Taxpayers Associations — the global network of more than 60 taxpayer protection groups working together for lower taxes, limited and accountable government, and taxpayer rights all over the world.

2

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

With COVID-19 as cover, we risk Jacinda Ardern’s Government entrenching unaffordable policies that will be difficult to unwind.

We must step up the fight, now.

The Taxpayers’ Union stands up for hard-working taxpayers like you by fighting for better value for our tax dollars. We stand for Lower Taxes, Less Waste, and More Transparency in all levels of government.

percent rate of opposition in the submissions on the Tax Working Group’s proposals. In addition, our campaign saw thousands of messages sent to the Prime Minister asking her to ‘Axe this Tax’.

Since its launch in 2013, the Taxpayers’ Union has been the primary independent voice for fiscal restraint and receives more media coverage than any other pressure group on the centreright.

This year, our key focus was the Green Party’s “wealth tax” – a tax on Kiwis’ assets.

Introducing taxes on capital, at the very time we need to attract new investment to safeguard New Zealand’s key long term economic prosperity, would be a disaster. Contrary to the Greens’ claim, most New Zealanders would eventually be hit by the tax.

Our reports, initiatives, and campaigns draw attention to the fact that you spend your money better than the politicians and bureaucrats sitting in Wellington and at your local town hall.

Asset Tax commitment joins our comprehensive win on Capital Gains Tax Last year our key achievement was the comprehensive victory in stopping Dr Michael Cullen being able to claim public support for his proposed unfair capital gains tax and the resulting “captain’s call” by the Prime Minister.

That win was the result of a two year campaign, recruiting many thousands of supporters who helped us reach a 70 3

Our ‘Campaign for Affordable Home Ownership’ identified homeowners who would be most impacted by the tax, and contacted them with personalised direct mail and targeted online advertising.

Our campaign drove thousands of New Zealanders to use our petition and online tools to tell Jacinda Ardern not to implement the Greens’ unfair asset tax. In the final week of the election campaign, the National Party even adopted our campaign’s talking points.

The result: we forced the most popular left wing Prime Minister in a generation to totally rule out an asset tax, in addition to her earlier commitment not to ever introduce a capital gains tax.

In short, the efforts of the Taxpayers’ Union over the last three years means New Zealand’s status as having the third best tax system in the world (according to the Tax Foundation’s International Tax Competitiveness Index) is safeguarded.

But more battles ahead With Labour now having its own majority, we will hold them to account every step of the way.

The Government has painted itself into a corner. It has ruled out wholesale tax change (which is great), but shows no sign of restraint in spending. While New Zealand entered this economic crisis with low debt, stimulus based on borrowing can’t last forever.

The only way we can defeat the Debt Monster is to ensure that spending is targeted and efficient, so that the economy can grow and ensure debt as a percentage of GDP is reduced.

Thank you for making this work possible.

David Farrar Co-founder

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

The principles of good policymaking have not changed, and the importance of value-for-money of every dollar spent by government has never been higher.

The media is dominated by groups whose policies demand more spending funded by taxpayers and ratepayers. We expose government waste, resist groups that constantly demand more spending for their pet causes, and create a public climate that demands less wasteful spending, and lower taxes.

Our efforts highlight and reduce the public’s tolerance for low quality and unnecessary government spending. We do this by relentlessly championing the interests of those who fund central and local government.

The Taxpayers’ Union remains independent of all political parties and will never become one.

The war on government waste Our War on Waste campaign lifts the veil of secrecy from wasteful spending and demands better value for money from proposed spending initiatives by the Government, councils, political parties and other lobby groups.

Due to an absence of other groups campaigning for fiscal responsibility, many of these stories would not have become public without our efforts.

We operate a 24-hour media line for comment on taxpayer issues.

We also operate a tip line for members of the public to submit examples of wasteful government spending – some of our best exposés have come from insiders and bureaucrats using this service.

• organise taxpayers so they have an effective voice in the corridors of power; and

Unique pressure-group model

But our continued existence is never guaranteed. Our efforts are due to you, with others joining together and financially contributing to our mission of Lower Taxes, Less Waste, More Transparency.

We are not a think tank. We rely on the good work done by traditional think tanks but communicate ideas to a wider audience. Therefore, our target market isn’t the intellectual elite in Wellington – we are here to capture the talkback audience.

Our value is our ability to influence the public debate, and the politicians who must respond to it.

• champion the benefits of an efficient tax system and public policies which advance New Zealanders’ prosperity.

Thank you for your support.

Jordan Williams Executive Director / Co-founder

Our campaigns: • scrutinise government spending; • expose and fight government waste; • demand more accountability from the politicians and bureaucrats who spend our money; • fight for lower taxes to enable people to keep more of their own money; • make clear that citizens are better with their own money than politicians and bureaucrats;

4

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Policy Impact Phase 1 - Solid Research Tip Line Our online tip line enables anyone to blow the whistle on government waste. It gives members of the public the chance to submit their own observations of wasteful government spending – a tool also proven to attract insiders and bureaucrats to expose questionable expenditure. Through official channels, we confirm all stories that come to us via tip-offs.

Research Papers Expert Advisors

Reports based on primary research, and literature reviews with detailed analysis, lay the foundation of our campaigns.

We work with economists, industry, and outside experts to ensure our work is accurate, authentic, and hard hitting. In addition to our in-house economist and researchers our external advisors include numerous former senior Treasury, Inland Revenue, and Reserve Bank officials.

Official Information Act We file more requests under the Official Information Act and Local Government Official Information and Meetings Act than any other organisation in New Zealand. While only a small portion of our requests result in a media story, each and every one reminds officials that there is someone looking over their shoulder at what they spend your money on.

5

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Phase 2 - Strategic Communications 24-hour Media Line We’re committed to being ready for comment moments after a story breaks to ensure the perspective of the hardworking taxpayer is never forgotten.

Radio and TV Our spokespeople appear on national radio, TV news bulletins and panels on a weekly basis. We maintain a loud presence on Newstalk ZB, Magic Talk, TVNZ’s Q&A, and TV3’s Newshub Nation.

Digital Campaigning Our social media presence is designed to recruit support with ‘calls to action’ such as petitions and opinion polls that build our support base and spread our message.

6

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Policy Impact Phase 3 - Sustained Campaigning Lobbying Parliament Regular and direct engagement with MPs, Ministers and government officials strengthens our efforts to build support for changes in policy.

Sign the petition “I oppose the Green

Party’s proposed

tax on my home,

First name:

retirement savings,

and lifestyle.”

Last name:

Email: Address: City:

Post Code: Signed:

Support the camp aign (optional)

Alternatively sign online at www.AffordableHomeO wnership.nz

Our campaign efforts are only possible thanks to New Zealanders you contribute will like you who donate be used to fight the and support our work.

Greens’ proposed tax on your home, Anything retirement savings, Your donation: and lifestyle.

$500

$250

$100

You can donate via:

$50

$25

Other:

• Credit card: Expiry:

/

CVC:

Name on card: • Online at www.Affor dableHomeOwnersh ip.nz/donate • Bank Deposit: Westpac 03-0539-0390321-00 0 • Enclosed cheque made out to “New Zealand Taxpayers’

Complete, tape (or

The Campaign for Affordable Home Ownership is an initiative of the New Zealand Taxpayers’ Union, 117 Lambton Quay, Wellington. www.taxpayers.org.nz

Union”

staple) and Freepos

t

Organising Activists Our volunteers across the country are key to our effective grassroots effort, delivering petition cards, hosting yard signs, and amplifying our messages.

Building Coalitions No one has a monopoly on good ideas. We often work with other groups from across the political spectrum from both here and overseas to build broader support for our policy objectives.

7

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Results – Policy Victories

8

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

GOVERNANCE

Barrie Saunders

David Farrar

Chairman barrie@taxpayers.org.nz

Co-founder david@taxpayers.org.nz

Barrie is a well-known figure in Wellington’s political and business scene. He has 25 years’ experience as a principal of Wellington’s preeminent government relations consultancy Saunders Unsworth.

David is the owning director of Curia Market Research, a specialist polling and research company, which he founded in 2004. He is well known as the editor of Kiwiblog which he founded in 2003, which receives around 600,000 visits a month.

Due to his vast experience in politics, David frequents TV and radio to provide political commentary.

Previous roles include press secretary to the Labour Party Leader Bill Rowling, founding Editor of the National Business Review, President of the Wellington Regional Chamber of Commerce, Public Relations Manager for the Manufacturers’ Federation, Public Relations Manager for the NZ Meat Producers’ Board, and the Board’s North American Director based in New York. Barrie has also served on the board of TVNZ.

In 2009 David was ranked by the Listener as New Zealand’s fourth most powerful voice in the media.

John Key credited David as “New Zealand’s best pollster” during his 2014 election night victory speech.

Jordan Williams

Executive Director/Co-founder jordan@taxpayers.org.nz Jordan manages the operations of the Taxpayers’ Union and Auckland Ratepayers’ Alliance and provides political commentary across radio and TV. He has an LLB and BCA (Accounting Major) from Victoria University of Wellington and is a Barrister and Solicitor of the High Court of New Zealand.

Prior to his current role, Jordan was a solicitor, then consultant, at the specialist Wellington commercial and public law firm, Franks Ogilvie.

In 2011 Jordan was the spokesperson for Vote for Change, a lobby group campaigning against the retention of the MMP system.

Jordan serves on the Board of the World Taxpayer Associations and the Advisory Council of the Britian’s TaxPayers’ Alliance.

With the exception of the full-time Executive Director, all Board members are volunteers and contribute financially to the Union.

9

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Rex Nicholls

Casey Costello

Ashley Church

Rex is a former Wellington City Councillor, serving from 19831989 and 1992-1998. He is a former director of Wellington International Airport and Lambton Harbour Management and was involved in setting up Tourism Wellington.

Casey has over 30 years’ experience in security and law enforcement. After leaving the Police as a Detective Sergeant and vice-president of the NZ Police Association she has held various management roles including in the Parliamentary Service.

Ashley is a well-known media commentator on property and politics. He writes a weekly column for the NZ Herald and appears regularly as a guest commentator and industry expert in national media and television programmes.

Board Member rex@taxpayers.org.nz

Rex has a background in engineering, property investment, and project management. He has preserved several Wellington buildings including moving the Shamrock Hotel and developing and strengthening CQ Hotels in Cuba St.

Board Member c.costello@taxpayers.org.nz

After years as general manager of a building services company Casey now owns her own successful consultancy business.

Since 2016 she has been a spokesperson of Hobson’s Pledge advocating for equality before the law for all New Zealanders.

Latterly Casey has also been active in the prevention of exploitation and supporting ethical labour practices with the establishment of a charitable trust to provide support and assistance to exploited workers.

Board Member a.church@taxpayers.org.nz

He has an extensive background in the property industry, going back more than 30 years and established his first portfolio of seven properties by the time he was 23.

As the CEO of the Property Institute between 2015 and 2019, he transformed that organisation into a highly visible property advocacy body. Prior to that he was CEO of the Newmarket Business Association and the Auckland Property Investors Association.

Ashley was a Napier City Councillor between 1989 and 1998 and remains the youngest person ever elected to that Authority.

10

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Staff

Sara Leckie

Louis Houlbrooke

Monique Poirier

Sara is our full-time Development Officer & Office Manager. She has extensive experience in all the corporate services fields. Sara deals with all our office administration and assists the Executive Director and Board with donor engagement and fundraising.

Louis is our full-time Campaigns Manager. He has a Bachelor of Communications majoring in Journalism and worked for three years in Parliament as a Press Secretary before joining the Taxpayers’ Union. He executes campaigns and ensures the voice of taxpayers is heard on radio, television, social media, and in newspapers across the country.

Monique is our Auckland Campaigns Manager, primarily coordinating the Auckland Ratepayers’ Alliance. Monique has a Master of Arts (Politics) from the University of Auckland, is a small business owner, and former Parliamentary staffer. Monique is based in our Auckland office.

Jo Holmes

Jim Rose

Development Officer & Office Manager

National Campaigns Manager

Auckland Campaigns Manager

Key Volunteers Ratepayers’ Alliance Spokesperson Jo Holmes was the Deputy Chair of the first Waiheke Local Board under the Auckland Super City and has Chaired the Waiheke Businesswomens’ Group. Jo has no political party affiliations and her professional background is publishing.

11

Research Fellow Jim has worked at MBIE, the Department of Labour, the Ministry of Social Development, the Treasury, the Department of Prime Minister and Cabinet, the Australian Department of Finance, and the Australian Productivity Commission.

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Casey Russell

Neil Miller

Engagement Coordinator

Analyst

Casey is the first point of contact for the hundreds of enquiries we receive each week from members, supporters, and the public. She is currently completing a Bachelor of Commerce in Public Policy at Victoria University.

Neil has worked in Parliament as a senior researcher and speech writer, an adviser at Treasury, and a manager at Business New Zealand. He ran his own communications and writing company for over a decade before joining the Taxpayers’ Union. Neil is a regular on Radio New Zealand and Newstalk ZB.

Ashley creates the visual design for the Taxpayers’ Union.

Along with graphic design she assists with video, photography, podcasts, and motion graphics.

She has studied Graphic Design and Screen Production at Yoobee Colleges.

Karan Menon

Islay Aitchison

Matt Holden

Research Officer

Research Officer

Karan is an economics graduate from the University of Auckland who worked in mortgages, equities and in insurance. He is currently pursuing his Masters in Economics.

Islay is one of our part-time Research Officers. She is studying towards a Bachelor of Laws and Arts, majoring in Philosophy and Political Science.

Previously, she spent four years working in the public service.

Matt is one of our part-time Research Officers. He is studying towards a Bachelor of Laws and Arts, majoring in History. Matt also assists our design team with photographic and video content.

Economist

Ashley Brown Lead Designer

12

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Student Internship Programme Help develop the next generation of political leaders.

With New Zealand’s universities dominated by the left, we are often approached by enthusiastic likeminded university students wanting help to develop their public policy, advocacy, and research skills.

You can ensure the next generation of young leaders are properly armed to take on those trained by the student and industrial unions.

Sow the seeds of fiscal restraint in tomorrow’s leaders by sponsoring an internship at the Taxpayers’ Union. Contact our Executive Director on (04) 282 0301 to discuss options.

?

Claudia Cooper

Aryana Nafissi

Is this you?

Claudia is one of our part-time research interns. She is currently studying towards a Bachelor of Laws and Arts majoring in Politics and International Relations at Victoria University.

Aryana is one of our part-time research interns. She is currently completing her double degree in law and commerce at the University of Auckland. In 2021 she starts in a graduate role at Deloitte.

We are always on the lookout for talented young people to join our Internship Programme.

But how many we are able to take on totally depends on the generosity of the thousands of New Zealanders who make our work possible.

Research Intern

13

Research Intern

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

The Debt Monster He’s green, he’s hairy, and he’s coming for your kids!

Right now, the Government is borrowing $128,219,178.08 per day. Government debt is forecast to hit $109,000 per household by 2024.

During the 2020 election campaign, we introduced a new character to New Zealand politics: the Debt Monster. His background presence serves to remind politicians and voters that today’s promises are paid for by tomorrow’s taxpayers, with interest.

The Debt Monster enjoys the new Parliamentary slide which cost taxpayers $572,000

The Debt Monster is a highimpact, low-cost tool to get the fiscal conservative message across to voters – that there is no free lunch and the quality of spending is even more important when the money is being borrowed.

Watch the live Debt Clock at www.debtclock.nz

14

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

The War on Waste

The War on Waste campaign is the backbone of our activity. It reminds the public that they are better stewards of their hardearned money than wasteful politicians and bureaucrats.

We encourage political and government insiders to ‘dob in’ examples of government waste and extravagance using our confidential tip line. Many of our best stories come from sources within government, including bureaucrats frustrated with waste and inefficiency.

We put the Government – politicians, officials and taxpayerfunded groups on notice that taxpayer money should treated with care.

15

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

16

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Election 2020:

Campaign for Affordable Home Ownership Only a politician could claim that a tax on housing makes it more affordable

New Zealand’s long term economic challenge has been under capitalisation across our economy causing low productivity and low wages.

That’s why the Greens’ tax on assets would be so damaging.

Asset/wealth taxes are inherently unfair (they apply regardless of a householder’s income level), would do serious damage to New Zealand’s economic prosperity, and assault the lifestyles of our members and supporters.

Raising awareness of the specifics of the policy (and how it would affect voters) saw the National Party pivot its whole campaign messaging in the last week of the election campaign.

We knew we needed to reach those in affluent suburbs who nevertheless tend to Party Vote Green and are unlikely to be centre-right voters or traditional Taxpayers’ Union supporters.

Our branding, and messaging, reflected this.

The Campaign for Affordable Home Ownership reached nearly 100,000 owners of homes valued at more than one million dollars (who would therefore likely pay the tax) living in suburbs which have historically high Green Party support.

The result: the Prime Minister was forced to rule out ever implementing the Green Party’s key election policy.

The campaign avoided economic messaging and financial terminology as the target audience was – by design – likely to be hostile to messaging focused on economic growth and entrepreneurship.

John Smith 123 Anderson Street Albany Auckland, 0632

Dear John,

Sign the petition “I oppose the Green Party’s proposed

N STREET

PROPOSED TAX ON 123 ANDERSO

tax on my home, retirement

savings, and lifestyle.”

Last name:

First name:

Address: Post Code: Alternatively sign online at www.AffordableHomeOwnership.nz

Signed:

al) Support the campaign (option our work. Anything like you who donate and support possible thanks to New Zealanders and lifestyle.

Our campaign efforts are only on your home, retirement savings, fight the Greens’ proposed tax you contribute will be used to

Your donation:

$100

$250

$500

$50

$25

Other:

You can donate via: • Credit card: Expiry:

/

CVC:

Name on card: nership.nz/donate • Online at www.AffordableHomeOw 0321-000 • Bank Deposit: Westpac 03-0539-039 to “New Zealand Taxpayers’ Union” • Enclosed cheque made out

Complete, tape (or staple) and

Home The Campaign for Affordable Ownership is an initiative of the New Zealand Taxpayers’ Union, 117 Lambton Quay, Wellington. www.taxpayers.org.nz

Freepost

– Greens inviting

Inland Reve

Family trusts targe

ted too

According a tax to the the election promising Green Party’s policy the Green Party is going into regime. It says , all assets in family I’m writing to let you know that that “if [the trust] trusts will be includ Street. is not clearly linked treated as its own ed in the on your home at 123 Anderson impact to anyone ... the person for tax lthy, in reality it willmillio purposes and trust would get n dollar thresh as hitting just the mega-wea taxed at than of more old”. That mean While the tax is being framed nest eggs, will n of assets) with a net worth s that many jointly two percent on all assets, with combinatio any (or home a be taxed. no owned family bache anyone who owns s. s, or family and will be many of your neighbour $1 million – that could be you,

And it will be

the Greens’ “top

priority” in coali affordable Even if other partie tion negotiatio s try to rule out – rates ns a second round of The the tax, anything Green Party could your home will be like paying can happen in insist on a tax on Paying the tax on the value of t, worsening coalition negot Greenthe your home and Party co-leader iations. expensive. There’ll be less investmen savings behind James Shaw has the Greens’ making home ownership more closed doors. described the the mortgage is punished under down paying tax as a ‘top priorit when And housing crisis. y’. off young buyers.

Make proposal, the tax will just put

Making home ownership less

Email:

City:

‘The Widow Tax’

While couples nue to your fune face a higher thresh ral or your spouse old (through joint pass away the ownership of assets threshold halve burden of a tax ), as soon as you s – leaving the on your family surviving spous home, any accru might have been e with ed retirement hoping to leave savings, and anyth the to your children ing you and grandchildr en.

a smart choice

this election

If you are conce rned about the Greens’ plan to and lifestyle: tax your home , retirement saving by the Green Party’s wealth s, over $1 million will be affected your KiwiSaver, Any individual with a net worth Make a smart assets will be taxed, including major all – house choice on electi your just not a car (such as an tax. And it’s on day to reject and any other investments. Even the tax. the family bach, your small business, Return the enclo taxed. more than $50,000 would be sed form to regist electric vehicle or SUV) worth er your opposition to the tax.

Thank you for your support.

How much will I pay? percent per year and any net assets over $1 million at one The proposal is to initially tax of your life. One or per year, every year, for the rest assets over $2 million at two percent but the bill could be enormous: two percent might sound small, on every cent of savings even Islay Aitchison worth $1 million will be taxed • A retiree who owns a home Campaign for is less than the tax.

Affordable Home if their fixed interest income Ownership islay@affordableh lifetime savings worth an omeownership.nz with a home worth $1.5m and • An individual looking to retire bill every year. $16,000 a receive would additional $800,000, and a $250,000, of mortgage a $1.4m, a home worth • A young entrepreneur with bill every year. And for every $10,000 $4500 a receive would business worth $300,000, bill by $100. would increase the annual tax paid off the mortgage, the Greens

Will the Albany tax hit me?

PS. Register your opposition to the Greens’ asset ownership by completing the tax and stand enclosed petiti for affordable on form. home

Responses build supporter lists for future fights Authorised by

19

the New Zealand

Taxpayers’ Union

- for the Campaig

n for Affordab

le Home Ownersh

ip - 177 Lambton

Quay, Wellingt on.

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Election 2020:

Tax Relief now!

The Taxpayers’ Union’s vision is a ‘prosperous low tax new zealand with efficient, transparent, and accountable government’.

While other countries are using tax relief for economic stimulus, our Government appears solely focused on a 1970’s style stimulus – where capital is allocated from the Beehive, not from consumers and investors.

In short, New Zealand faces a basic choice: politicians borrowing and spending willynilly, or a recovery that’s led by the choices of consumers and businesses.

Our Tax Relief Now! campaign put the spotlight on wasteful government spending with fullpage ads, along with a Taxpayer Scorecard that informed voters where each party stood on tax relief.

Tax relief – in particular a temporary cut to GST – could replace monetary policy stimulus by bringing consumption forward. This policy worked in the UK which temporarily cut VAT immediately after the GFC, and is backed by most economists as a better way to stimulate consumer spending than government spending.

Government spending is often wasteful, unfair, and incentivises the private sector to cozy up to the politicians and bureaucrats in charge of the recovery. In contrast, tax relief rewards productive work, helps all businesses, and puts a rocket under economic growth – making government debt more manageable.

20

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

2019 Recap:

Capital Gains Tax: How we Axed the Tax The Government’s Tax Working Group, led by Dr Michael Cullen, proposed a capital gains tax that failed the test of fairness. It would have been bureaucratic, costly, and one of the most extreme in the world.

We responded by launching the ‘Axe this Tax’ campaign – a campaign which saw the Government reject Dr Cullen’s proposals outright.

Defined “fairness” We published a set of rules for a “fair” CGT, and showed how Dr Cullen’s proposal failed four out of five criteria.

Activated the grassroots en masse Our supporters dominated the Working Group’s consultation process, and almost 9,000 people used our tool to email the politicians.

Equipped the media News bulletins featured our supporters sharing personal stories about how they would be hit by the tax.

Hard-hitting research We exposed how two-thirds of the CGT’s forecast revenue would come from taxing false inflationary gains.

21

Made it about people with video and social media Supporters of our campaign filmed short, personal videos that we edited and distributed on social media.

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Ultimately, our efforts ensured that the passage of the proposed tax was a political impossibility.

On April 17, the Prime Minister admitted the Government lacked a mandate to introduce the tax, because New Zealanders demonstrated that they did not want it.

Jacinda Ardern did not only drop the entire capital gains tax proposal – she committed to never allow the advance of such a tax under her leadership, no matter what future coalition partners demand.

Equipped opinion leaders We hosted events where a member of the Tax Working Group briefed opinion leaders on the tax’s pitfalls.

Co-ordinated efforts Fronted the media

We hosted private forums with industry groups and other Members of our team appeared campaigners to ensure no-one in news reports and published was working in a silo. op-eds exposing unfair aspects of the tax.

Took the fight to the Beehive We delivered a petition from lifestyle block owners to the Beehive, along with 4,500 personal messages.

Identified and mobilised those most affected We wrote personally-addressed letters to more than 10,000 New Zealanders who would see their family homes taxed.

Exposed the pro-tax campaigners as taxpayer-funded We crashed the launch of the pro-CGT campaign and exposed how they received taxpayer funding.

22

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Annual Event:

Jonesie Awards Recognising the best-of-the-worst of government waste with an awards ceremony at Parliament

We hold an annual Oscars-style award ceremony at Parliament to celebrate the best-of-theworst of government waste.

The Jonsie Awards highlight and lament the most absurd examples of wasted taxpayer money to emerge in the previous 12 months.

Behind the tuxedos and gilded statuettes is a serious message: politicians and bureaucrats

23

in both local and central government happily fritter away your hard-earned money on bizarre pet projects and illplanned schemes without fear of consequence.

The Jonesies serve as a shot across the bow for anyone in charge of a government chequebook: rein in the waste, or see your name up in lights at the next Jonesie Awards.

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Winners of our 2020 awards include: Local Government: Wellington Mayor Andy Foster

Central Government: Rt Hon Winston Peters

Lifetime Achievement: Hon Phil Twyford

When nine-term councillor Andy Foster was unexpectedly elected Mayor last year, he promptly enrolled himself in a $30,000 leadership course at Arrowtown’s Millbrook estate.

However, he has refused to say what, if anything, he learned – and has since spent more money on a team facilitator to smooth over problems on his Council (usually the job of the Mayor.

The former Deputy Prime Minister and New Zealand First Party Leader led the Government’s COVID-19 response by announcing a $72 million funding package for the racing industry. This package included two synthetic horse tracks. No-one has been able to establish how horse tracks relate to coronavirus.

Phil Twyford’s young ministerial career has been marked by a seemingly endless series of costly failures. His attempt to build 100,000 Kiwibuild homes, budget blowouts for SkyPath, and a failure to launch his prized tram down Dominion Road, made him a clear winner. And that’s without considering his hikes to fuel tax!

24

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

National Party Adopt Union’s Tax Policy When the Taxpayers’ Union launched eight years ago, the issue of bracket creep was not on the political agenda. But our steady campaign pressure has resulted in it becoming a mainstream issue.

Bracket creep is when taxpayers move into higher tax brackets without any real rise in incomes due to inflation. Tax threshold indexation deals with this problem by ensuring that income tax is adjusted to keep in line with inflation. This is not a tax cut, rather a measure to ensure that real tax rates remain the same every year and that politicians aren’t taking advantage of stealth tax hikes.

After our lobbying and campaigning on the issue, politicians have started to listen. The previous Opposition Leader used his 2019 ‘state of

25

the nation’ speech to commit to fixing the problem of bracket creep, announcing that if National is voted back into government, legislation will see tax thresholds automatically adjusted every three years to be kept in line with the rate of inflation.

Subsequent National Party leaders have retained the policy.

In short, our campaign has seen this taxpayer issue come not only onto the agenda, but our policy recommendation become a core campaign promise by the Leader of the Opposition.

Thanks to our work, the National Party and media were armed in the economic and fiscal modelling of what the policy means for both the Crown books and household finances.

We also ensured political leaders and the had details of international precedents such as how the Canadians index their federal income tax threshold – a measure brought in twice by the centre-left Canadian Liberal Party.

“National’s commitment is a win for the taxpayers, because it would end ongoing stealth tax hikes, meaning the benefit to taxpayers is infinite – to repeal the policy a future government would need to pass legislation in Parliament.”

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

COVID-19 Response:

Local Government Rates Freeze The arrival of the COVID-19 crisis saw central government swiftly prioritising economic relief for businesses and households.

However many local councils indicated they planned to forge ahead plans to increase costs on ratepayers.

Our nation-wide rates freeze campaign argued that higher rates during a pandemic would increase financial stress for households and undermine the Government’s economic relief strategy.

With households and businesses cutting costs, it is only fair that councils do the same — we must all cut our cloth to fit the new economic reality.

Our campaign put significant pressure on councils to revise planned rate hikes downward in response to COVID-19. A domino effect saw one council after another find new savings in their budgets to limit costs on ratepayers.

As of October 2020, nine in ten councils reduced their planned rate hikes, with seven freezing rates entirely.

The average planned rate hike was reduced from five percent at the beginning of the year down to to two and half percent in councils’ final budgets.

11,000 New Zealanders signed our petition for a nationwide rates freeze, with our campaign receiving extensive coverage in regional newspapers across the country as well as on Newshub and TVNZ’s Q&A. Our Rates Freeze Dashboard allows ratepayers to check how their local council’s rate hike compares to others.

26

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Targeting the Super City:

Auckland Ratepayers’ Alliance Auckland Council shows what happens when we let big government politicians and activists get out of control.

The Auckland Ratepayers’ Alliance has attracted more than 33,000 members since its launch in 2015.

The Alliance is a coalition of individual Aucklanders and ratepayer groups dedicated to championing the prudent fiscal management of New Zealand’s largest city. Its mission is ‘Reasonable Rates, Sensible Spending in our Super City’.

www.RatepayersReport.nz

27

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

REVEALED: THE AUCKLAND TOWN HALL RICH LIST

?

This inaugural Auckland Town Hall Rich List reveals the 86 Auckland Council staff taking home salaries higher than $250,000. At the Auckland Ratepayers’ Alliance we believe that if a Council boss is paid more than a Government Minister, ratepayers are entitled to know who they are and what they do.

Executive General Manager – Safety (Auckland Transport) Bryan Sherritt

Executive GM – Risk and Assurance (Auckland Transport) Rodger Murphy

Executive GM – Service Delivery (Auckland Transport) Andrew Allen

$310,000

$310,000

$310,000

Executive GM Group Manager – Investment Group Manager – Planning and Investment Management Office – Network Management (Auckland Transport) (Auckland Transport) (Auckland Transport) Cynthia Gillespie Mark Jensen Randhir Karma

Head of Function (Auckland Transport) Unknown name

$310,000

$310,000

$310,000

$310,000

Director – Auckland Art Gallery Toi o Tāmaki (Regional Facilities Auckland) Kirsten Paisley

Director – Strategy (Regional Facilities Auckland) Jonathan Wilcken

Director – Auckland Live and Auckland Conventions (Regional Facilities Auckland) Robbie Macrae

$275,000

$275,000

GM Building Control (Auckland Council) Ian McCormick

$275,000

GM Commercial and Finance (Auckland Council) Andrew Clark

?

CEO (Watercare) Raveen Jaduram

$775,000

CEO (Regional Facilities Auckland) Chris Brooks

$480,000

CEO/Town Clerk (Auckland Council) Stephen Town

$698,000

CEO (ATEED) Nick Hill

$465,000

Director Customer and Community Services (Auckland Council) Ian Maxwell

Director Regulatory Services (Auckland Council) Craig Hobbs

$375,000

$375,000

Executive GM Executive GM – Stakeholder, – Customer Experience Communities and (Auckland Transport) Communication Vanessa Ellis (Auckland Transport) Wally Thomas $355,000

Group Chief Financial Officer (Auckland Council) Matthew Walker

$600,000

CEO (Auckland Transport) Shane Ellison

(departing)

$540,000

Acting CEO (Panuku Development) David Rankin

$500,000

GM – Economic Development (ATEED) Pam Ford

Unknown title (Watercare) Unknown name

GM – Destination (ATEED) Steve Armitage

$295,000

$295,000

$285,000

$275,000

Director Financial Policy (Auckland Council) Andrew Duncan

$275,000

$275,000

Executive Officer to Chief Executive (Auckland Council) Sara Hay

Acting Chief Operating Officer (Panuku Development) Ian Wheeler

GM – Development (Panuku Development) Allan Young

GM Healthy Waters (Auckland Council) Craig Mcilroy

GM Libraries and Information (Auckland Council) Mirla Edmundson

GM Auckland Design Office (Auckland Council) Ludo Campbell-Reid

$355,000

$355,000

$275,000

$275,000

GM – Strategy (ATEED) Noah Maffitt

Chief Corporate Affairs Officer (Watercare) David Hawkens

Chief Customer Officer (Watercare) Amanda Singleton

$345,000

$335,000

Executive GM – Integrated Networks (Auckland Transport) Mark Lambert

$400,000

$380,000

$380,000

Governance Director (Auckland Council) Phil Wilson

Director Urban Growth and Housing (Auckland Council) Penny Pirrit

Chief Financial Officer (Panuku Development) Carl Gosbee

$365,000

Chief Financial Officer (ATEED) Jacky Hollingsworth

$345,000

Executive General Manager – Business Technology (Auckland Transport) Roger Jones

Mayor Phil Goff

$296,000

Chief Engineer (Auckland Council) Sarah Sinclair

Executive General Manager– Finance (Auckland Transport) Mark Laing

$375,000

Director Infrastructure and Environmental Services (Auckland Council) Barry Potter

$375,000

Director People and Performance (Auckland Council) Patricia Reade

$375,000

$505,000

$355,000

$355,000

Chief Digital Officer (Watercare) Rebecca Chenery

Chief Financial Officer (Watercare) Marlon Bridge

Chief Infrastructure Officer (Watercare) Steve Webster

Chief Operations Off icer (Watercare) Shane Morgan

Chief People Officer (Watercare) Shane Glennon

$335,000

$335,000

$335,000

$335,000

$335,000

Executive GM – Culture and Transformation (Auckland Transport) Natasha Whiting

$380,000

Chief of Strategy (Auckland Council) Megan Tyler

$335,000

Executive Programme Chief Financial Officer Director (Watercare) (Regional Facilities Auckland) Shayne Cunis Brian Monk

$335,000

$325,000

$275,000

Head of Business Partner- Head of Strategy and ships and People Operations Capability (Auckland Council) (Auckland Council) Bronwyn Hall Shameel Sahib

$275,000

GM Communications (Auckland Council) Dan Lambert

$275,000

GM Plans and Places (Auckland Council) John Duguid

GM Arts, Community and Events (Auckland Council) Graham Bodman

$275,000

$275,000

$275,000

GM Auckland Plan, Strategy and Research (Auckland Council) Jacques Victor

GM Licensing and Regulatory Compliance James Hassall (Auckland Council)

GM Local Board Services (Auckland Council) Louise Mason

$275,000

$275,000

$275,000

(departed)

Head of Recruitment and Talent (Auckland Council) Emma Murphy

Manager of Strategic Projects (Auckland Council) Lou Lennane

Programme Director, America’s Cup 36 (Auckland Council) Martin Sheldon

Group Manager – Metro Services (Auckland Transport) Stacey van der Putten

Group Manager – Strategic Projects (Auckland Transport) Chris Morgan

$275,000

$275,000

$275,000

$275,000

$270,000

$270,000

Group Manager – Property and Planning (Auckland Transport) Jane Small

Group Manager – Procurement (Auckland Transport) Andy Richards

Group Manager – Communications (Auckland Transport) Teresa Burnett

GM – Assets and Delivery (Panuku Development) Marian Webb

$270,000

$270,000

$270,000

$255,000

Group Manager – Strategic Land Use and Spatial Management (Auckland Transport) Christina Robertson

Group Manager – Marketing and Customer Engagement (Auckland Transport) Kevin Leith

Group Manager – Integrated Networks Enablement (Auckland Transport) Colin Homan

$255,000

$255,000

$255,000

$275,000

Two additional staff at Auckland Transport and one at Watercare are paid estimated salaries of $255,000 – job titles and identities are unknown.

Chief Operating Officer (Regional Facilities Auckland) Paul Brewer

$325,000

General Counsel (Auckland Council) Dani Gardiner

Director ICT (Auckland Council) Mark Denvir

$325,000

$325,000

GM Community Facilities (Auckland Council) Rod Sheridan

$325,000

GM Corporate Finance and Property (Auckland Council) Kevin Ramsay

$325,000

GM Financial Strategy and Planning (Auckland Council) Ross Tucker

Treasurer and GM Financial Transactions (Auckland Council) John Bishop

$325,000

$325,000

Salary figures represent the mid-point of remuneration bands provided under the Local Government Official Information and Meetings Act as at 30 September 2019. As such, they should be taken as estimates. Prior to publication the data was sent to Auckland Council and each of the individuals listed asking for any corrections or clarifications.

For more on the methodology of this list visit www.ratepayers.nz/rich_list This advert was funded by the 20,000+ members of the Auckland Ratepayers’ Alliance. Follow our efforts fighting for Reasonable Rates and Sensible Spending in our Super City by joining for free at www.ratepayers.nz

Ratepayers’ Report is our interactive online local government league tables, accessible via RatepayersReport.nz.

Ratepayers’ Report makes it easy for New Zealanders to compare the performance and financial position of their local council against others.

More than two thousand data points are collated, including metrics such as council debt, assets, spending types, and staff costs, shown on a per-ratepayer basis. Since its first publication in 2014, many councils now use Ratepayers’ Report for internal reporting and performance benchmarking.

28

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Key statistics Revenue Sources Individuals

57%

Other Income

5% Industry Membership

65,593 57,271 Supporters* Supporters*

13% Online

25%

Donors Donorsinin2020 2020

Operating Expenses Campaigns & Communication

38%

Admin & Overhead

7% Technology & Web

12% Research

22%

Fundraising

21%

While most income is from donations, individual membership costs only $25 per year, with various categories of membership for business and corporate taxpayers starting at $5,000. Full financial accounts are available on request and are filed annually with the Registrar of Incorporated Societies (Companies Office).

Since 2015, no single donor or industry member has contributed more than seven percent of total revenue within a 12 month period.

29

3,289 2,557 *A supporter is anyone who voluntarily signs-up as a supporter of the Taxpayers’ Union. There is no cost associated with being a supporter however many become members for $25 or make other financial contributions.

Unless otherwise stated, figures are as of 31 October 2020 and annualised based on ten months to October.

Note these figures include the Auckland Ratepayers’ Alliance.

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Year in Numbers 16 29,422

11

Podcast downloads

Published Reports

16

Television appearances

43,906

4

Major Policy Victories forced on Government

151 144

Front pages

334,215

Petition signatures

Radio interviews

Supporter Newsletters

Video views on Facebook

30

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

Will you join us in ensuring tomorrow’s taxpayers don’t become the collateral damage of today’s economic response?

We only exist because enough New Zealanders want their voice heard.

Left leaning media personalities, big unions, big corporations and government-funded special interest groups can be challenged by the contributions of thousands of individual taxpayers who care to make a difference.

Pushing back against wasteful spending, opposing corporate welfare handouts, fighting new taxes and shining the light on local government has seen results. Your donation makes sure taxpayer concerns are heard by decision makers.

You can’t save the world if you can’t keep the lights on

New Zealand needs a strong voice for fiscal restraint now more than ever

Government funded special interest groups have a voice.

What about the taxpayers who pay for all this? Whether taxpayers have a voice is in the hands of those who voluntarily donate and support the Taxpayers’ Union.

Our track record shows that we can deliver

31

Right now, an incredible $128 million is being borrowed on behalf of future taxpayers every day. That money will need to be paid back, with interest. With the Prime Minister under real pressure to deliver to her leftwing electoral base, a first-time single party majority under MMP, New Zealand needs a strong voice for fiscal restraint now more than ever.

Can we count on your support?

We have a long list of projects and campaigning lined up to hold this Government to account and uncover wasteful spending.

But this won’t happen without your support, and the support of others like you, digging deep and making the work of the Taxpayers’ Union possible.

Barrie Saunders Chairman

NEW ZEALAND TAXPAYERS’ UNION ANNUAL REVIEW 2020

The COVID-19 crisis is a one in one hundred year economic shock. The decisions taken now determine whether we will remain one of the world’s most prosperous countries, or whether we will fall from grace.

You have the opportunity to influence New Zealand politics for the better and guide our organisation’s work and priorities.

The Taxpayer Caucus is privy to exclusive insights with regular commentary from our board, staff, and guest commentators on what is happening behind the scenes in and around the Beehive. Caucus members are

invited to Taxpayer Caucus-only events and briefings.

Membership of the Taxpayer Caucus is restricted to supporters who give at least $1,000 per year.

Privacy Paramount Like all of our donors, membership of the Taxpayer Caucus is totally confidential (unless you instruct otherwise).

How to donate Internet banking

Cheque

NZ Taxpayers’ Union Inc. 03-0539-0390321-00

Made out to ‘NZ Taxpayers’ Union Inc.’ sent to: PO Box 10518, The Terrace, Wellington 6143

Debit or credit card

Online

Call us on 04 282 0300 (option 2)

www.taxpayers.org.nz/donate

All donations are confidential and are not required to be publicly disclosed.

32

Lower taxes, Less Waste, More Transparency www.taxpayers.org.nz