Category: Business

Source: Radio New Zealand

The rising cost of living is seeing New Zealanders increasingly choosing to buy and sell goods in the secondhand marketplace.

According to TradeMe’s latest report on the circular economy which surveyed 4000 people, 64 percent cite financial pressure as the reason for looking to buy and sell pre-loved items more often, up 4 percent on last year.

Younger generations are leading the trend, with 83 percent of those aged 24 to 39 having offloaded items in the last six months.

“The younger generations are the real power players in this space,” says Lisa Stewart, TradeMe head of marketplace.

“Many in that generation are not just selling their unwanted goods, but they’re looking at them as a side hustle and proactively hunting out things that they could upcycle to make some extra profit.”

Concern for the impact on the environment of buying new and a desire to recycle was also a big factor in younger people’s choice to buy and sell secondhand.

Time to clean out the garage?

The report suggests 75 percent of people have unused, unwanted items in their homes they could sell, which adds up to 76 million items ready for a new home.

Stewart said on average, each person has 19 items to sell, with an estimated value of $1300 per person. And when it comes to decluttering, clothing and home and living are the most popular items to sell.

“In terms of the things that are flying off our digital shelves, we’re seeing lots of demand for outdoor furniture this time of year, and also for fashion brands like Kowtow or Lululemon,” Stewart said.

“For many households, $1300 isn’t a small amount, it’s a flight to see family, a significant buffer against rising bills, or a kickstart for a savings goal.”

The report also points to conservative spending behaviour, with 56 percent saying the cost of living has directly led them to extend the life of their household goods through upcycling, repurposing, or restoring them.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Wellington’s mayor is promising to reduce the city’s commercial rates burden, but admits he doesn’t yet have the council’s backing to do so.

Andrew Little told a Wellington Chamber of Commerce breakfast event that the current commercial rates differential meant that businesses paid 3.7-times the residential rate – thought to be one of the highest in the country.

“That starts to make it challenging for developers when they’re developing inner-city land for commercial purposes. So, if we can address that differential and bring the differential down, then we become more competitive in that regard,” he said.

However, even a modest reduction could push residential rates up by around 4 percent.

Little said the first step was getting council spending under control, before shifting the balance.

“I’m confident that if we do the work on financial planning, budgeting, what have you, that in time we can do this.”

The mayor said reducing the commercial rates differential was a personal commitment.

He said there was no formal proposal yet and any change would need negotiation around the council table.

“There’s no collective council commitment to… I don’t know what the split on council would be. There are plenty who are keen to see it. There are some for whom it’s not the top priority, but that’s the nature of council. It would have to be negotiated through.”

Whether to decrease the commercial rates differential from $3.70 to $3.25 has previously stirred heated debate over the pressure on businesses versus residents.

At a 2023 council meeting a proposal to reduce the differential was voted down [ https://www.rnz.co.nz/news/business/504175/wellington-city-council-votes-in-principle-to-keep-same-rates-for-businesses].

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Wellington’s mayor is promising to reduce the city’s commercial rates burden, but admits he doesn’t yet have the council’s backing to do so.

Andrew Little told a Wellington Chamber of Commerce breakfast event that the current commercial rates differential meant that businesses paid 3.7-times the residential rate – thought to be one of the highest in the country.

“That starts to make it challenging for developers when they’re developing inner-city land for commercial purposes. So, if we can address that differential and bring the differential down, then we become more competitive in that regard,” he said.

However, even a modest reduction could push residential rates up by around 4 percent.

Little said the first step was getting council spending under control, before shifting the balance.

“I’m confident that if we do the work on financial planning, budgeting, what have you, that in time we can do this.”

The mayor said reducing the commercial rates differential was a personal commitment.

He said there was no formal proposal yet and any change would need negotiation around the council table.

“There’s no collective council commitment to… I don’t know what the split on council would be. There are plenty who are keen to see it. There are some for whom it’s not the top priority, but that’s the nature of council. It would have to be negotiated through.”

Whether to decrease the commercial rates differential from $3.70 to $3.25 has previously stirred heated debate over the pressure on businesses versus residents.

At a 2023 council meeting a proposal to reduce the differential was voted down [ https://www.rnz.co.nz/news/business/504175/wellington-city-council-votes-in-principle-to-keep-same-rates-for-businesses].

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Economic confidence in Tai Rāwhiti is being lost because of the constant weather impacts on its roading network, a Gisborne business leader says.

Heavy rain and severe flooding swept across the North Island last month, battering communities on the East Coast.

Former chief executive of horticulture company Leaderbrand Richard Burke was calling for a regional and national discussion about long-term transport routes, amid an ongoing cycle of weather events and cleanups.

The chunk of State Highway 2 between Ōpōtiki and Mātāwai closed for two weeks, with 40 worksites along the road including eight spots with severe damage due to slips and flooding.

A convoy had been operating three times a day in both directions; that is Gisborne bound and Ōpōtiki bound, since Monday.

Burke told Morning Report a lot of money had been spent fixing the problems rather than looking at “the core issues”.

“People want to talk about the cost of road closures. But the real cost is a lack of investment coming into the region as a result of uncertainty,” he said.

“We’ve got to start thinking, longer term and bigger picture, around how do we not only resolve the issue, but get the region standing on its own feet again. Because there’s a whole lot of really good stuff that happens down here, but we miss it in all the issues that are being created by poor infrastructure and changing weather patterns.”

Burke questioned whether existing roading routes were still fit for purpose.

“The roading infrastructure that comes into the region was really developed by our forefathers who rode horses and stuck to rivers and those sort of things. Whereas now we’re running big trucks and big equipment,” he said.

“And if you’re building that road today, would you really stick to the same path knowing what the issues were.”

A rethink on alternative routes out of the region was needed, Burke said.

“I’m not underestimating the geological issues that are involved here, because there’s some big hills and some real challenges there. But, you know, unless we start looking at that, we’re not going to get out of the cycle we’re in,” he said.

“We’re just in this cycle of event, of cleanup, of event, of cleanup. And we’re just losing confidence in the region as a result.”

He felt the region was becoming less attractive for future investors due to a lack of certainty and resilience.

“We’ve got some good natural resources down here. We can grow stuff really well,” Burke said.

“But if you can’t be confident of getting stuff out of town or to market, and you can’t attract people here because they feel isolated, then you’re not going to build a decent-sized business.

“So your investment decisions are very different. I think that’s the big cost for the region.”

The government had shown in the past that it was prepared to “bite the bullet” by signing off on unpopular and costly projects, including the Clyde Dam, Burke said.

“Imagine if we hadn’t have done that. It would have cost a lot more now, and where would we be with our power industry,” he said.

“I know it’s a long-term process, but we’ve got to get serious about starting that and put some real attention into it and be brave enough to take some of these projects on.

“Otherwise, we’re not going to move forward.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

How much of the country’s total personal tax bill is your region picking up?

If you are in Auckland or Wellington, the answer may be more than you might think.

Inland Revenue data covering personal taxable income and income tax attributable to individuals shows that Auckland pays just under 38 percent of the country’s personal tax, and has just over 33 percent of the population. This is based on information for the 2023 financial year – the data for the 2025 year is not yet available.

Wellington pays 12.7 percent and has 10.5 percent of the population.

Waikato, in contrast, has 8.8 percent of the population but pays only 8.3 percent of the tax bill. Northland has 3.5 percent of the population and 2.8 percent of the tax bill.

Whanganui/Manawatu has 4.8 percent of the population and only 4 percent of the bill.

On a per-individual basis, Wellington has the highest personal tax bill at $12,300. Auckland is just behind at $11,500 and Canterbury is in third place with $9900. Otago is fourth at $9700.

Gisborne has the lowest at $7700.

Much of the variation can be explained by different areas’ income.

Auckland and Wellington are the areas of the country with the highest incomes, followed by Canterbury and Waikato.

Infometrics chief executive Brad Olsen said Auckland and Wellington had more people in the higher tax brackets who paid more tax.

“We know, for example, that Wellington City, rather than region, has the highest personal incomes in the country. Infometrics estimates show that Wellington region average annual personal earnings were around $90,600 and about $88,600 for the Auckland region. Those were the only two regions above the national average.

“If you look at the likes of the West Coast, which has got a fairly small proportion, and smaller than its total population. Even though the West Coast actually has some reasonable average earnings, that much smaller population is showing through there in terms of where they sit.”

He said Bay of Plenty, Manawatu, Northland and Hawke’s Bay all stood out for the gap between their population proportion and the proportion of tax paid.

“The likes of Northland especially, you know, you’ve often got a high level of benefit dependency there, and potentially also more people that at the very margins might not participate quite as much with government… probably operating a little bit further away from the strict expectations of the IRD.

“Not necessarily trying to circumvent the law, just that you find some rural provincial economies that often more cash based, or operate sort of more in a community setting.”

Simplicity economist Shamubeel Eaqub said it was interesting to consider the tax paid compared to where the government spent its money.

“Last time I looked at it which was years ago, places like Auckland paid more into central government coffers than they took out in public services… large, dense places that are rich will redistribute. That’s what the redistribution mechanism is for… poverty is quite often disproportionate. We tend to have a lot more deprivation in rural New Zealand.”

Olsen said it was a hard question to contemplate.

“Transport funding, for example. That can sort of fluctuate quite a lot year on year … when the Waikato Expressway or Transmission Gully were getting built, those regions probably got quite a lot relative to otherwise, but they’re maybe not getting nearly as much now.”

He said areas where larger numbers of people were on NZ Super could also be receiving more government funding than others.

“There are a few hotspots across the country where there’s a higher average age proportionately – Thames Coromandel, the likes of Kapiti District and similar, so those areas will have more as well. And then it’s also going to be areas that have a greater government workforce concentration. The likes of Auckland and Wellington do generally have a fairly large workforce concentration, particularly Wellington, of course.

“A reasonable amount of the Wellington city economy is driven by the pay and work of the government workforce.”

How does your region compare?

Wellington

$12,300 per individual

10.5 percent of the population and 12.7 percent of tax paid

Total of more than $6.2 billion in tax paid

Auckland

$11,500 per individual

33.4 percent of the population and 37.7 percent of tax paid

Total of nearly $18.5 billion in tax paid

Canterbury

$9900 per individual

12.9 percent of the population and 12.6 percent of tax paid

Otago

$9700 per individual

4.1 percent of the population and 4 percent of tax paid

Waikato

$9500 per individual

8.8 percent of population and 8.3 percent of tax paid

Taranaki

$9300 per individual

2.5 percent of population and 2.3 percent of tax paid

Nelson

$9100 per individual

1.2 percent of population and 1.1 percent of tax paid

Bay of Plenty

$9100

6.87 percent of population and 6 percent of tax paid

Southland

$8900 per individual

2.1 percent of population and 1.8 percent of tax paid

Marlborough

$8900 per individual

1 percent of population and 0.8 percent of tax paid

Tasman

$8700 per individual

1 percent of population and 0.8 percent of tax paid

Hawke’s Bay

$8400 per individual

3.7 percent of population and 3.1 percent of tax paid

Manawatū-Whanganui

$8400 per individual

4.8 percent of population and 4 percent of tax paid

Northland

$8100 per individual

3.5 percent of population and 2.8 percent of tax paid

West Coast

$7800 per individual

0.6 percent of population and 0.5 percent of tax paid

Gisborne

$7700 percent of individual

1 percent of population and 0.8 percent of tax paid

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

A major waste company is calling on more retailers to take back used batteries as it investigates whether one is to blame for a landfill blaze that lasted several hours.

Several fire crews responded to the fire at the Tirohia Landfill and Energy Park near Paeroa at about 11.30am on Wednesday.

WM (Waste Management) New Zealand thinks it could have been a lithium battery.

“We have a big compactor that operates on the site that crushes down the waste that obviously went over something that caused a fire to break out in the waste pile,” managing direct Evan Maehl said.

“The waste pale is not large, we only have a small footprint open each day but the fire then took hold because there was a lot of flammable materials that it could jump onto,” he said.

The company has had people on watch overnight in case there were any hot spots that reignited.

“It probably burned for about four or four-and-a-half hours, it was not out of control at any stage but there was obviously smoke and it was visible,” he said.

“It was one of those things that we are unfortunately well drilled in.”

The company said it may have been a gas canister, but that similar fires had been caused by lithium batteries.

Maehl said there had been 20 confirmed battery fires across WM New Zealand’s sites over the last 12 months.

“Ten at our landfills, six on trucks which is quite scary and four in our transfer stations,” he said.

Maehl said a recent example was on an Auckland motorway last month on a truck the company runs for Auckland Council.

“We had to eject its load on the southwestern motorway because the driver spotted flames and smoke, so that was in a recycling truck heading to a recycling facility so it could have been a much worse result had it got to the recycling centre and it was dropped off there,” Maehl said.

The message, he said, was to keep the batteries out of household rubbish and recycling.

It was here that retailers had “skin in the game”, he said.

“It’d be great if they could jump on board and take them back so they could be segregated in their own special waste stream so they can be looked after.

“I’ve seen, like at Bunnings, they’ve got a take-back bin right outside the front door when I was there on the weekend,” he said.

Maehl acknowledged simply throwing the batteries away was convenient for people.

“But there could be downstream consequences too, like a recycling truck – and they’re [worth] half a million dollars each, or much worse would be a transfer station or recycling station,” he said.

“We’ve had two in the last year, we’ve had two recycling centres that burnt which is a big impact on the infrastructure of a city or a town.”

What’s the problem with lithium batteries?

Maehl said the issue was when the outer shell of a battery cracked and they were exposed to the air.

“You could Google it or Youtube it and you can see how quickly they react with oxygen,” he said.

“They ignite really quickly to a very high flash point.”

The problem was then compounded if they were surrounded by the likes of cardboard, paper or plastic.

“If there’s material around them then that will carry on the fire,” Maehl said.

His company had put flame and heat detection equipment in its trucks so loads could be ejected quickly if a fire erupted.

“It’s the same in all of our transfer stations and recycling facilities, we’ve now got flame detection cameras and heat detection cameras,” he said.

“Because sometimes they smoulder away under a pile of cardboard, you can’t see it.”

“This wasn’t really a thing if you go back 15 years ago when I started in the industry, but it is now.”

Last year Auckland Council urged for the batteries to be disposed of properly after a devastating fire at the Abilities Group recycling plant on the North Shore.

The plant burnt to the ground and destroyed essential equipment.

The organisation employed and supported more than 100 disabled people.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The shadow of 2021’s house price boom still hangs over sellers trying to shift their houses, even years later.

New data from Cotality shows that 12 percent of people selling residential properties in the last quarter of last year did so for less than the amount they paid for them.

In Auckland, that stretched to 17.4 percent. Wellington was just over 15 percent.

Those who lost money had held their homes for a median 3.9 years, taking their purchase price back to the 2021 peak.

“It was a tricky time to have been a buyer and any unforeseen change in circumstances over the following period may have meant needing to sell at a reduced price,” Cotality chief property economist Kelvin Davidson said.

People who made money had held their properties for a median 10.1 years, the longest ever recorded in the data, which goes back to the 1990s.

Those who lost money lost a median $55,000 compared to a median $298,000 for those who made a gain. Auckland sellers lost a median $78,944 and gained a median $367,250.

Davidson said the data probably showed that people were holding on longer before selling to try to allow gains to accumulate.

“Or in other cases it may just reflect the fact that in a relatively quiet market a lot of sellers simply have to wait longer for a deal to be achieved.

“Indeed, some property owners may also just be choosing to hold for a bit longer if they’re uncertain about their job prospects or don’t want to pay transactions costs such as an estate agent’s commission or conveyancing fees as regularly. In addition, lending restraints such as the loan to value ratio rules may have kept more people where they are for longer.”

He said there had been periods in the past where places had been held longer and still made a loss. In 2016, the median hold period for places making a loss was eight years.

Investors have historically been more likely to sell fort a loss than owner-occupiers but this quarter’s data showed little difference.

Investors were making a median loss of $58,950 and a median profit of $308,000 compared to $56,500 for owner-occupiers who lost money and $285,350 for those who made a gain.

Hamilton investors made more losses than owner-occupiers – at 20.6 percent of sales compared to 13.2 percent for owner occupiers.

But in Wellington the trend was reversed, with 17 percent of owner-occupiers making a loss and only 11 percent of investors.

Davidson said the data showed the general flatness of the market.

“A bit more balance out there now. Deals are being done, so buyers and sellers are meeting in the middle and maybe vendors aren’t necessarily getting the price they might have liked two years ago, but they have adjusted expectations and they’re happy with it now.

“The market’s clearing, deals are being done and okay, there’s a bit more pain out there for sellers than there has been in the past. But there are signs of a stabilisation, and we actually saw the median resale gain go up a bit in the fourth quarter, too.”

He said even if people were not able to sell for the sort of price they might have at the market peak, if they had owned their houses for 10 years or more, they were likely to get more than they paid.

“The gains are smaller than what they were, but still pretty significant. Even at 88 percent, that’s still most people making a resale gain when they sell.”

He said it was likely that those who bought in the 2021 peak would struggle to sell for a few years yet.

“We’re still down 18 percent from the peak nationally, some areas more than that … that’s taken four years.

“Let’s say growth from here on is even ambitiously maybe sort of 5 percent on average over the next three, four, five years, it’s going to take at least four years to get back to that previous peak. So, this sort of tough period to buy and sell relatively quickly could be around for two or three years yet.”

He said most people would not have bought with the intention of selling soon.

Davidson said he expected house price growth to resume later in the year as the economy improved and mortgage rates remained relatively low. “Property resellers may fare better in that environment but it’s unlikely to be a boom.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

There is a certain sort of freedom which comes with being your own boss.

But a lack of work-life balance alongside carrying the finances can get heavy quickly – especially when times are tough.

In new research released by Xero, small business owners confessed that sometimes it did get a bit much, with close to half of survey respondents admitting they had thought about throwing in the towel.

It seemed 2025 had been an uphill battle, with three quarters of the business owners surveyed saying this financial year had been more stressful than previous years, blaming rising costs and unpredictable demand.

“Running a small business is hard work and business owners often have to make significant sacrifices – missing a child’s swimming sports or working all hours and not getting enough sleep,” said Bridget Snelling, Xero New Zealand country manager.

“This is what we call an emotional tax – the hidden personal costs small business owners have to pay every year,” said Snelling.

The difficulties of being in business come to a head at the end of the financial year, with almost half of small business owners saying it was the most stressful time of year.

Chasing paperwork and worrying about making mistakes were listed as concerns, while a surprise tax bill (or refund, but more often it was a bill) had at some point kept 54 percent of business owners up at night.

“We know the end of the financial year can sometimes sneak up on business owners who are so invested in the day-to-day doing of the work,” said Snelling.

And they may not be sleeping either. The survey found that stress costed business owners five hours of productive work every week, which worked out to 30 working days lost per year.

Despite the challenges of small business ownership, only 10 percent sought advice from an accountant or advisor when they were stressed.

“Stress isn’t just a feeling – it slows decision‑making, reduces creativity, and leads to avoidable mistakes,” said Snelling.

“It impacts the skills owners rely on to succeed.

“With the right tools and support, business owners can reclaim time, reduce their emotional tax, and feel more confident heading into EOFY.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The economic outlook is looking increasingly positive with rising confidence, solid exports and low short-term interest rates positioning 2026 for growth, according to Westpac’s first quarter economic overview.

“After a rocky few years, the New Zealand economy looks to be on much firmer footing in 2026,” Westpac chief economist Kelly Eckhold said.

Westpac estimated annual economic growth lifted to 1.8 percent in the year ended 2025, with annual growth accelerating to 3.3 percent in 2026 and 2.7 percent in 2027.

Eckhold said the unemployment rate was expected to fall below 5 percent in the second half of 2026 and decline further over 2027, from 5.4 percent in the year just ended.

“Average borrowing costs are expected to decline further in 2026 as more borrowers roll off earlier fixed terms onto lower mortgage rates. That will help support demand across the domestic economy.”

He said inflation, which had surprised to the upside in late 2025 at 3.1 percent was projected to moderate over 2026, though price pressures remained broad-based, and core inflation was expected to linger above the midpoint of the Reserve Bank (RBNZ)’s target of 2 percent through the rest of the year.

However, he said the RBNZ was likely keep the OCR (official cash rate) at current levels until the end of the year.

“The RBNZ will take most of 2026 to gain confidence that the economic recovery is sustained and durable,” Eckhold said.

“But from then they will move quickly to restore neutral interest rate settings and then move interest rates to slightly restrictive levels in 2028.”

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