Jak Fixes Tax

Jak Rāta (He/Him)

So the budget came out recently, and what that meant for a lot of the tauira throughout Aotearoa was confused brains as they were left scratching their heads in hopes for some semblance of understanding re monetary value in their daily lives. But the words on everyone's lips are:

“Cost of living relief”.

The mere thought of $350 given free from a government is exciting in itself, until you start breaking it down. Where the funds are reallocated from - what that means for tax in other parts of our day-to-day living. How does that affect you, humble student on your minimum wage or student allowance payments?

For some of you reading this, you’re only just coming into adulthood. This means you get to throw yourself into the amazing world that is taxes and generalised income brackets. You may get that payslip every week from The Warehouse or McBurgerFc and think, “wow, a lot of my money is going to tax. What does it mean?”. But what if told you that, as IRD research suggests, that 50% of those with net worths valuing $50 million are paying a lower tax rate than you? Kinda cooked right?

For those of you unaware or unfamiliar with what taxes are, I’m going to break it down for you in the most digestible way. Basically you pay tax on everything you either earn, buy or sell. Aotearoa’s Government relies on taxes to help fund services that ‘benefit’ us. All taxes are paid to IRD, Inland Revenue — the Government’s tax department. There’s two main types of tax you should be aware of:

- Income tax — tax on what you earn — or PAYE. - Goods and Services Tax — tax on things you buy — or just GST.

These tax types have varying percentages that allow the government to collect from the consumer or income earner as a means of balancing out the economic welfare of Aotearoa. Have I still got your attention? Well the main tax brackets for earnings are as follows:

- 39% from $180,001 - 33% from $70,001 to $180,000 - 30%: $48,001 to $70,000 - 17.5%: $14,001 to $48,000 - 10.5%: $0 to $14,000

Taking into account the varying levels of income tax, please spend a moment to comprehend the frustration of realising those earning well above the $1 Million threshold are paying around the same tax as those earning $14,000. Before I hear you say, “oh but they’d be paying so much of their earnings,” that’s simply just not how basic economics works. They’d be paying comparative to their earnings as we do with ours, those comfortable under the line of 30%.

Fair tax system

A common argument is that the general consumer doesn’t understand income tax enough to converse in everyday situations. While this is such a basic resolution, allowing better education will allow the general public to consume tax media easily. Revenue Minister, David Parker, has recently revealed a plan for a ‘fair tax system’ as the typical New Zealnader doesn’t know how little the wealthiest of our income earners are, only paying 12% of their total income. There’s no alleged plans to introduce a capital gains tax or wealth tax, contrary to claims of opposing potential finance ministers, but rather a system in place that gives equal value to a system unfairly attempting, and failing, to balance income tax.

Rental Freeze

With an increase of 7% over the past 12 months in rental cost, the typical renter is forking out $575 p.w on average homes in subpar condition. Waikato alone has a median price of $520, paired with the average house income being $39,583 ($761.2 p.w), leaving households with a mighty $240 for all other outgoings. While the growth in rental price has changed exponentially since February’s figures, the overall benefit from a freeze in rental prices would mean peace of mind for the common renter. The fear of rising prices disallows us to become excited to have our own places. We can’t just relax with fear hanging heavy.

Up the Green

Worried about lower socio-economic households using and abusing marijuana? Want to generate more income without actually taxing heavily on essential goods & services? Start with simply legalising Marijuana. Not only will it provide jobs for more people, but goods tax on weed has proven beneficial in green states throughout the continental USA. The tax doesn’t need to equate that of the US system, but it’s not far off with a 15% cannabis excise tax being imposed upon all purchasers of cannabis or cannabis products sold at retail.

Cut fuel tax

With the current prices of fuel per litre at some of the highest we’ve seen in a decade, calls for an abolishment of fuel tax is coming into question. The plaster on the wound has been the reduction of 25 cents per litre, but the gas overlords have just combatted that by increasing the buy in cost and raising their prices, forcing servos to match that so they can fairly pay their employees. While an understandable change, how’s about lowering the tax semi-permanently as we claw our way out of this bumble fuck of an economic crisis we’re left in.

Ahh, money. For a while I was struggling to come up with an idea for this, but then I was given the topic of student finances. And boy do I have a lot to say about that. While I am one of the lucky ones who doesn’t actually have to worry about it too much, it’s still a pebble in the shoe of nearly everyone I know.

Before I begin, I will admit that New Zealand does do a better job than other countries, *cough* USA *cough*. Domestic students can apply for Fees Free for the first year, and we have StudyLink… such a huge help right? (Please take note of the sarcasm). However, that does not mean that student debt is piling up for people. It’s kind of crazy, don’t you think? In this day and age, tertiary education is almost a necessity, and yet for the rest of your life you’ll probably be carrying the weight of your fees.

Now, it’s not like any of this can be magically whisked away. So instead, I’m going to lay down some fact and see what the fuck is actually up within student finances in New Zealand. According to a very nice article I found, the average loan is $23,307 New Zealand dollars. The article also states that “A University of Auckland study published in 2019 says it takes 8.3 years for someone with an undergraduate degree to pay off their loan, and 7.4 years for postgrads.” That doesn’t seem too bad, right? Maybe it does. But the honest truth is that many students accumulate so much more than that, plus it doesn’t help that wages can be such a fickle thing, and that many people don’t just walk into jobs after university; gotta start out small, aye?

So where does the problem actually come from? It will never be the student’s fault, obviously – that’s ridiculous to even think about. Is it the university’s fault? Hmm, perhaps. Is it StudyLink? Well I know many people have their words about that. Honestly, I couldn’t tell you the reason. I could go on and on blasting everything bad about capitalism as if telling it to go away will actually make it go away. But that’s child’s play, so let’s get down to business (to defeat the Huns).

The reality is, studying is unaffordable for so many people. Despite all the “help”, many people in New Zealand decide against university. Why? Well StudyLink is a pain in the arse, that's for sure. It also doesn’t help that our futures are uncertain when it comes to finding work in our field of study post-graduate. And, knowing that you have to most likely work your way up from the bottom of the food chain does suck. Like imagine finally getting that one position, getting a comfortable salary, oooh maybe thinking about starting a family (if people still want that because ew, kids), and then BOOM! You’re hit with the realisation that you still have half of your student debt to pay off. Honestly what the fuck is up with this system?

特辑 / KUPU WHAKAATU

NEXUS Do you ever get so frustrated when trying to make your point that it physically pains you and then your head starts to spin because now you’re irritated too much, and somehow you start making no sense? That’s how I feel writing this, because I can’t comprehend why the world is so shit. I am genuinely so lost in the whole student finance ordeal. And I get that university can’t be free, that’s just cracked because uhh taxes? But it’s like, why does it cost an arm and a leg just to study?

I love how this piece is supposed to be about Nexus fixing the recession and yet here I am having a sook for all the people that are absolutely crushed by the weight of their student fees. I’m sorry, let me try to be serious again.

Okay, so I’ve talked about university fees a bit, so let me talk about our trusted friend StudyLink. I haven’t had too many problems with it, and I’m fortunate enough to qualify for the Student Allowance. However, I honestly don’t think I should. The system is fucked; there are people who need the help a whole lot more than I do, and while I’m eternally grateful for qualifying for it, the amount of people that are getting cheated on by StudyLink is incongruos. Did I use that word right? Probably not. What I’m trying to say is that many students are in situations where they need the help of StudyLink’s allowance, and StudyLink is meant to provide for students in need, but they don’t.

Oh, and don’t even get me started on what makes a person qualify for it. Or actually, do. All this talk of parents’ income is utterly ridiculous! When we graduate high school, most of us are eighteen or turning eighteen in a few months, yeah? We’re legally considered adults. Many parents see that as a one way ticket to saying “I’ve done my part, now it’s your turn to survive in the real world”, and that’s not necessarily a bad thing on their part. However, StudyLink is still asking for parents’ income like it affects students’ lives. News flash: many students don’t have the financial support of their parents (I’m not shit-talking anyone's parents before you think I am, I’m just saying it how it is). Because of this, students turn to loans which accumulate so much more debt because, not only are they using it for university fees, they’re also using it for living costs etc.

I don’t know how to fix this; I’m one person who’s studying english and political science for crying out loud. But I do recognise the problem. And I know most, if not all, of you do too. So, what do we do about it?

Ahh, university. Best years of our lives, right?

Tehana Talks Student Income

Tehana De Klerk (She/Her)

Housing is HARD (tehe)

Lily Bradey (She/Her) & Jak Rāta (He/Him)

Recent prices for buying homes has become unreasonable with Kirikiriroa reaching a new high for median cost of a 3 bedroom house at $847,591, with our median income at $39,583. The maths isn't maths-ing my friends and something isn’t right. We’re not trying to be cynical, but the reality is, we’re all going to struggle to find houses within our lifetime without the untimely death of a rich overseas relative or if you somehow crack the code with lotto. This week, Jak and Lily work together to give you a list of suggestions to help you combat the current housing crisis, but we’re no experts so take these with a grain of salt (if you can afford it).

Tiny Homes

Tiny homes are genuinely becoming one of the most realistic options for our generation in terms of future homes. Depending what style and size you are interested in, they usually cost from $20,000 to $100,000. I love tiny homes; I could easily see myself living in one with a loft bed and a sunny reading nook. They are possibly not ideal if you are claustrophobic, tall, or if you have any family, however they are suited for some.

Split a Room

Half serious, but sometimes sharing a room in a flat can cut costs and you can basically grow a sibling bond with someone you’ve never met. You get to be in the same room all the time as someone who could potentially sniff your hair as you sleep, or stare intently as you sleep, or spoon you as you sleep. They’ll watch from the corner of their eye as you change post-shower. You’ll have an audience if you bring a sneaky link around (great for exhibitionists). Perhaps sharing a room isn’t all that, but at least you get a cuddle buddy most nights!

Pak n save Mill Street carpark

This is the perfect prime location! Central to town, free WiFi, great bargains, and low food prices! (Not sponsored by paknsave.) You basically only need a car, or a cardboard box and you are away. Also, there’s only an 85% chance you’ll be robbed or attacked by someone on drugs!

Couchsurfing

Now, it’s a tale as old as time but it’s a good one so trust me on this. Those couches that you picked up off the street during O’week? Yeah, well chuck a tiger print blanket on her and you’ve got yourself a bed that would rival any fancy hotel on a good day. The benefits are there, and you get to hang with different mates every week. Results!

Papakainga

If you aren’t sure what a papakainga is, it’s basically an extended whanau living together in a commune type situation. For example, this could be a large house shared by 15-20 extended family members. Sounds like a tight squeeze, but not if it’s built with 6 bathrooms and 3 lounges. Papakainga could also mean a group of small houses on ancestral land that live closely together. Another great idea! Splitting costs with extended whanau means it could be affordable to build a house! You just need a family. You also need to have a reasonably functional family if you want to avoid conflict. Possibly just don’t invite your weird uncle into the discussion.

Sleeping at the gym

Chances are you took up a sweet deal on a gym contract like some chump, but all is not lost because there’s gotta be some good to be found in that sweet, sweet 24h access card (unless it’s a staffed gym, sorry to you). You know the squat benches? Well they double really well as a bed. And if you’re feeling really risque, try laying down some of the workout mats and turning them into a bed; that’s for sure comfier than any box spring with shitty Kmart sheets.

Sugar daddy’s house

Have several older men in your Instagram dms telling you you’re gorgeous and deserve to be treated like a queen? Take them up on their offer! How could it possibly go wrong? I can only see benefits with living with your sugar daddy: free food, accommodation, free clothes, and an old man telling you how hot you are. May as well benefit financially from creepy entitled men hitting on you for once! You may have to move to the United States or Nigeria as this is where they live in my experience, what an adventure. Perfect plan. 10/10.