I thought one of Nationals main flag flying policies was the urgent and the serious matter of redressing housing affordability in NZ. Since the average new home to build costs on average $250,000 , the new GST hike will effectively increase all materials and services as they will need to adjust for this. That means an increase of 2.5%, or approx. $6250. Is this how you bring down the cost of housing? Wait, you will need to buy some land to go with that though. With the current prices of land being similar to the build costs, might as well hit the x2 button, because the developers of the land will have to add their 2.5% margin. We now have a potential $12,000+ hike in the cost for the average Kiwi family trying to build their dream home virtually overnight. If there is an increase in the cost for a new homes, usually this has a flow on effect to existing housing stock. So will our tax cuts for the average NZ family trying to build or buy their home compensate adequately for this Mr Key? Is this how to tackle the affordability of housing? Moreover, closing the discrepancy of the costs of living between here and across the ditch or further abroard?
What relief is Key promising for middle income earners who don't own property and don't have a family? A single person cannot get Working for Families and won't get a cut in income tax so they are effectively penalised under this scheme with higher prices on everything they buy. Nats are the party of the rich, then throw a few crumbs to the poor. Key was know as the "smiling assassin" from his Wall St. banker days - same routine here.
I'm on a benefit (gross pay is less than 20k p/yr). The last tax cuts were offset with the benefit - we didn't get a cent extra in our pocket. I'm an invalid and have never had an increase which is equal or more than the cost of a bottle of milk. GST will go up which will mean rises not only in the cost of living, but also the rise of rent, petrol, public transport etc etc. My benefit will rise by $3.00 if I'm exceptionally lucky this time. I'm not talking about bene's only however... all low - middle income earners will suffer from this. How many people actually sit on the $70k + p/yr. Not talking average wage like they usually do, I'm talking percentage per population. John Key might have kissed the young voters a**e at the last election but I think they have probably seen through his bulls**t now. National's attitude is; the rich get richer, the rest can get stuffed. Shame is... we've still got nearly 2yrs left of this and by then the damage will be done.