Category: Business

Source: Radio New Zealand

KiwiSaver providers are expecting to see some members opt to keep their contribution level static, even as the default rate rises.

It was announced last year that the base contribution rate for KiwiSaver would lift from 3 percent to 4 percent by 2028.

The first stage of the increase, to 3.5 percent, takes effect from April 1.

But from 1 February, members can apply for a temporary rate reduction, which will keep their contributions at 3 percent this year.

Employers can then also match that reduced rate.

The temporary reduction can be stay in place for anywhere from three months to 12 months but people need to reapply to continue after that.

Dean Anderson, founder of Kernel, said he expected an increase in inquiries when the changes took effect in April.

“While the long-term benefits for retirement savings are clear – with analysis suggesting funds could last significantly longer in retirement – the immediate reality is a potential change in take-home pay for many.

“This is a particularly important concern for those on ‘total remuneration’ contracts, as they will see a double hit: their own contribution increasing and their employer’s increased contribution being deducted from their gross salary.

“I also strongly recommend that all employees, especially those working for smaller businesses that may not use automated payroll platforms, triple-check their payslips in April. Payroll adjustments for these new rates are mandatory, and manual errors are a real risk during this transition.”

A spokesperson for Generate said because people would ned to take action on the reduction through IRD, that might be where most of the impact was felt.

“We may get calls when people see their rate change and aren’t aware it was going to happen.”

Simplicity chief economist Shamubeel Eaqub said when changes happened automatically, they would often stick. “That’s the thing with auto-enrolment, you have to take action to opt out.”

Government modelling suggested the increase in contribution rates could make a material difference to a person’s retirement outcomes.

It said someone who had an income of $60,000 at 25, had two children, a year of parental leave and withdrew money at 30 for a house would end up with 26 percent more at retirement with the higher rate.

A high-income earner could end up with 28 percent more and a low income or part-time worker could end up with an additional 21 percent.

Both National and NZ First have pledged to push contribution rates higher if they are in Government again.

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

Source: Radio New Zealand

Popular Wellington café, Chocolate Fish, is set to close on Sunday.

Café owners John and Penny Pennington like to think of the Chocolate Fish Café, as somewhat of a Mirimar institution. Operating since 1997, it had been at its current site since 2009.

Located at Shelly Bay, John said part of the cafe’s attraction was that it had space for kids to run around, free parking and “pretty good” food.

This month the cafe looked a little different however, with price tags littering the room with everything from the chairs and tables to the cutlery on sale.

“Because we’ve been terminated and don’t have anything to sell, and of course we’ve got a bit of debt and that sort of thing, and nowhere to go, we decided, right, we’d turn January, our last month of trading, into a garage sale,” John said.

Penny said it was devastating to have to close.

John said the café had a big client-base that ranged from regular locals to tour groups and people who specifically come out to Shelly Bay to go to their cafe.

Penny said the café had been described as being a hub of the community.

“We love coming to work every day because it’s like coming and seeing your friends, your whanau, and it’s just wonderful.”

Why is the café closing?

The cafe site was brought by Sir Peter Jackson and Dame Fran Walsh in 2023.

It had followed a rocky few years at Shelly Bay, with a planned controversial housing development spearheaded by the Wellington company which was later scrapped, and a fire which gutted the iconic Sawtooth building and forced the Chocolate Fish to relocate for months due to asbestos risk.

John said they thought they had won the Lotto when Sire Peter and Dame Fran purchased it.

“Everything was tracking so positively for us being able to continue on,” Penny said.

“To have that suddenly wiped out, that’s been a very bitter pill. We’re more than a café, we’re a bit of an institution,” John added.

WingNut PM, the property arm of Jackson and Walsh’s WingNut Group, told the Penningtons at the end of September it was terminating the lease. The pair initially publicly criticised the pair for the decision, but later walked the comments back.

At the time, WingNut PM told RNZ the owners had been aware the original Submarine Barracks required “substantial remedial work”, including replacing the roof, restoring its historic frontage, interior renovations, applying a new coat of paint to the exterior, and temporarily closing the parking area for tar-sealing.

The spokesperson said they had been in discussions with the Penningtons for the past year about its pending closure.

WingNut PM declined RNZ’s request for comment on this story.

Not likely to be another Chocolate Fish

The Penningtons explored other options, but a site as big as theirs was hard to come by. So far they had not found another space like it, although Penny said they would keep looking.

“I don’t see a Chocolate Fish to this degree ever happening again, sadly – it’s a huge space.”

Chocolate Fish Café closed its kitchen in late December, and John said it some ways it was now a relief to fully close.

“The menu has been quite small, and people trying to come out for that last fish sandwich have been disappointed.”

Coupled with poor summer weather, he said it had been “a little bit depressing”.

Their final message to their customers: “We’ve loved having you.”

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

Source: Radio New Zealand

Got questions? RNZ has a new podcast, No Stupid Questions, with Susan Edmunds.

We’d love to hear more of your questions about money and the economy. You can send through written questions, like these ones, but – even better – you can drop us a voice memo to our email questions@rnz.co.nz

I have a question that has always bothered me, and I’m yet to get a satisfactory answer. Why do we pay tax on our pension when it is coming from the tax that we have already paid? I was always of the understanding that you can’t be taxed twice. After all, isn’t that double dipping?

There are two parts to my answer.

The first is that I think a lot of people have the idea that they paid tax into a pool through their working lives, from which they will be paid the pension when they retire.

That isn’t the case – pensions are paid by people who are paying tax now, as part of general government expenditure.

The second part of it basically comes down to why we pay tax on benefits at all.

Tax is paid on all income earned in New Zealand, even when it is money that comes from the government.

Although it’s essential an administrative exercise for benefits, the money you receive is calculated a gross payment and then the tax you pay is determined according to your individual situation and the current rules.

In the case of NZ Super, if you’re working and claiming the benefit, for example, you could end up with a higher marginal tax rate on your pension because your overall income is higher.

There are some people who are argue that it should be a taxfree grant but that’s potentially a separate conversation!

How do I check how much is in my KiwiSaver? And how can I increase the amount of contributions from my pay? Does my company have to match that amount to what I increase to?

You can check your KiwiSaver balance any time through your KiwiSaver provider. Most have an online platform to do this, or you could give them a call to find out what options are available. If you don’t know who your provider is, Inland Revenue can tell you.

You can change your contribution rate through IRD’s myIR system, by contacting your KiwiSaver provider or by giving your employer notice.

Your employer usually only needs to match your contribution at the default rate (currently 3 percent but slowly increasing to 4 percent by 2028). So if you contribute more than that, they might not need to. Some employers are willing to match higher amounts, though.

Can you please advise if there is a ceiling on how much you can get before the pension would be affected? ie… if a family member were to put into our bank $1000 per week would this affect the pension?

No there’s no ceiling. Other amounts could mean you can’t access things like the accommodation supplement, and you could end up on a higher marginal tax rate depending on where the money is coming from but there is no income test for KiwiSaver.

What if I retire aboard a yacht, with no residence in country with reciprocal agreements?

If you are going to be overseas for more than six months, you need to apply to MSD if you want to keep your pension going.

You will need to do this at least six weeks before you leave New Zealand. If you haven’t notified MSD and you are away more than six months, they may ask for the sum to be returned.

What you can get if you are eligible for New Zealand Superannuation but living overseas depends on the country that you’re going to live in. Some countries like Australia have reciprocal agreements with New Zealand which means that applications for New Zealand Superannuation can be made while you are resident in that country and NZ residence can count for pension eligibility in the agreement country.

MSD advises that if you’re going to a country that doesn’t have a reciprocal agreement with New Zealand, you might be able to get your pension. The amount you receive would depend on the number of months you’ve lived in New Zealand between the ages of 20 and 65.

The best thing to do in this case will be to get in touch with MSD well before you leave to find out how the rules apply to your case.

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

Source: Radio New Zealand

Dairy giant Fonterra expects to complete the sale of its consumer business in the first quarter of this year.

The $4.2 billion sale of Mainland Group to France’s Lactalis remains subject to numerous regulatory approvals, with Australia’s Foreign Investment Review Board the most recent to green-light the acquisition.

The co-operative will hold a special meeting for shareholders on 19 February to approve a proposed capital return of $2 per share, equivalent to around $3.2b once the sale is complete.

Farmer shareholders overwhelmingly approved the sale of Mainland Group in October, which includes well-known brands like Anchor, Mainland and Kāpiti.

The capital return required at least 75 percent approval of the votes cast at the upcoming special meeting.

“As previously indicated, the payment should be tax-free, although it is recommended that shareholders and unit holders obtain independent tax advice on the effect of the capital return based on their individual circumstances,” the co-op said.

Fonterra said the separation of the consumer brands was also progressing well.

“Holding the shareholder vote on the capital return in February will enable Fonterra to return capital to shareholders and unit holders as soon as possible after the transaction is complete,” it said.

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

Source: Radio New Zealand

Stats NZ data shows annual inflation was at 3.1 percent in the three months ended December, following a 3 percent increase in the September quarter.

That means headline inflation is now above the Reserve Bank’s 1-3 percent target band.

More to come…

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

Source: Radio New Zealand

Severe weather across Northland, the Bay of Plenty, Coromandel and Tairāwhiti Gisborne is likely to mean delays for insurers, the Insurance and Financial Services Ombudsman is warning.

Ombudsman Karen Stevens said consumers should be prepared for delays because insurers will have a high number of claims to process.

“Contacting insurers online is the quickest way to make a claim, helping people avoid long phone queues, which are common after major weather events,” she said.

“Insurers will prioritise the most urgent cases first, such as those with unlivable homes or those in vulnerable situations.”

She said delays often resulted from the volume of claims, limited access for assessors and the need for specialist trades.

Stevens said insurers could call on lessons they had gleaned from the 2023 floods and Cyclone Gabrielle.

“Under the Fair Insurance Code, insurers must give clear information about claim progress, usually with updates every 20 business days or at another agreed interval,” she said.

She said insurers would usually prioritise the most urgent cases.

Meanwhile, banks have offered assistance to those affected.

ASB is offering customers support such as deferring loan repayments for up to three months, emergency credit card limit increases and solutions for businesses, including access to working capital up to $100,000.

BNZ is offering similar support, including access to temporary overdrafts and the ability to review home lending facilities on a case-by-case basis.

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

Source: Radio New Zealand

Acrobats, juggling and flying trapeze artists will fill Christchurch’s CBD for the next ten days as the World Buskers Festival returns to town.

From circus acts to street theatre and comedy, performers from 12 countries would converge on the city’s streets for the 33rd year of the festival.

Festival co-director Drew James said the annual event on Otautahi’s Summer calendar always brought in crowds, and about 100,000 attendees were expected over the ten days.

“All of these buskers are fantastic entertainers, they’re world class. We were just looking for variety, we’d really like to highlight and showcase a whole range of different acts. There’s something for everybody in that programme,” he said.

While most events were free and along the street, ticketed events included circus cabaret, dance, drag, comedy, and theatre.

Co-director Pitsch Leiser said the line-up of more than 100 artists included comedians from Switzerland and the UK and acrobats from Argentina and Canada.

“We’ve got about 15 buskers that are street theatre buskers then we have a whole range of busking shows that range from kapa haka to theatre shows happening on the busking stages in the CBD,” he said.

“It’s essentially accessible to everyone because it happens in the streets but we do encourage people to come and bring some cash and tip the hat and support the artists because that’s what they do for a living”.

The glittering Canadian duo The Silver Starlets were performing their aerial acrobatic show at the Buskers Festival for the first time.

Molly Keczan said their busking act began with setting up a 20-foot high aerial acrobatic rig.

“It looks much like a big swing set, but much safer. We perform aerial acrobatic acts off it of. A lot of the time when people find out we perform on the street they ask if we use a net, and we do, except I hang from it,” she said.

“We’re on our 11th year now as a show we started in 2015. It’s always been a big goal and dream of ours to get down to Christchurch because it’s a very world renowned festival.”

The festival was also collaborating with Gap Filler for “Eight Days of Play”, which was a series of interactive games for the public ranging from rock painting and chalk art storytelling to hobby horse racing.

Gap Filler urban play co-ordinator Kate Finnerty said she loved how the festival was all about people engaging in play right in the city centre.

“We need brightness, colour and play in our lives. The Buskers Festival just sums up everything I think a city should be,” she said.

“Most people can kind of remember back to a time when they were surprised or delighted by something on the street. When the Buskers Festival happens it’s around every corner.”

The festival runs from January 23 until February 1.

The full timetable of events can be found on the festival’s website.

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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’s a strong appetite for McDonalds to maintain an environmentally and “socially responsible” standard when it arrives in Wānaka, a community leader says.

The fast food giant was finally given the green light to develop a 450 square-metre 24 hour restaurant and drive-through in the Otago town.

On Thursday, the Queenstown-Lakes District Council finalised its decision to grant resource consent for a McDonalds at the commercial precinct Three Parks on Sir Tim Wallis Drive.

It follows a previous failed bid to obtain clearance to build a restaurant in rural zoning, along a highway passage into the township below Mt Iron – plans that were met with overwhelming resistance from locals.

Almost 93 percent of the 366 public submissions opposed the initial application.

Key concerns included the visual and aesthetic impact on the town, litter, as well as the area’s values about protecting the natural environment.

Commissioners declined the application in February last year.

The latest proposal was approved on a non-notified basis under the Resource Management Act, meaning public consultation was refused.

Queenstown-Lakes deputy mayor Quentin Smith said some concerns remained.

“There’s no question that McDonalds generates a lot of litter, probably more than most food providers. That remains a concern for a lot of people,” he said.

“We just hope that when they do come here they’re socially responsible operators and they do work hard to keep that under control.

“I’ve seen it first hand, a large distance around a McDonalds site you see litter and all sorts.”

Waste management had been raised as a concern by disgruntled community groups during earlier public submissions.

In his decision, council senior planner Ian Bayliss said the issue of waste generation effects generated from the proposal on the wider environment were considered to be “no more than minor”.

Relocating the planned site into a commercial zone went a long way in allaying other concerns, Smith said.

“The visibility and the character of Mt Iron and the entrance to Wānaka on a rural site were legitimate things that were considered under that previous application. They were largely the reasons it failed,” he said.

In a statement, McDonalds said it was pleased to be granted resource consent at Three Parks.

“We will now move on to the next stage of development and construction planning. As it stands, we are hopeful of opening the McDonald’s Wānaka restaurant in the next 12 months,” a spokesperson said.

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

Source: Radio New Zealand

New Zealand’s average weekly rent has dropped for the first time in a decade – but one representative for renters says it’s not necessarily a sign they have it easy.

Realestate.co.nz said, based on its data, the national average weekly rent was down 1.8 percent in 2025 compared to 2024.

Wellington had the largest drop of the main centres, down 9.7 percent. Auckland was down 2.5 percent.

Realestate.co.nz spokesperson Vanessa Williams said there were a few factors driving the change.

“Just after National got in, there was all this talk about legislative changes around the bright-line test, loan-to-value rules and interest deductibility.

“What we saw was a bunch of rental properties come off the market, be done up to get ready for sale, and then the realisation that the property market hadn’t moved at all in terms of price so they came back on to the rental market at an elevated price point because they had been done up.

“Then basically that was when we saw a real shift in the volume of listings coming on to the market and saw that shift to more properties than renters.

“You couple that with the increased exodus of people going outside of New Zealand, more specifically to the Australian market, especially people who would typically rent like tradies, frontline workers and nurses… and there is also this phenomenon of younger people just not moving out of home.”

Stats NZ data for December showed an annual drop in rents of 0.3 percent based on the flow measure of new rental properties, and growth of 0.1 percent in the stock measure.

But Realestate.co.nz data showed over the ten years to 2025, the national average was still up almost 50 percent.

“Over the past 10 years, the national average weekly rental price has shown consistent growth, from an average of $424 in 2015 to $638 in 2024. To see weekly rents fall 1.8 percent between 2024 and 2025 is a clear signal the market has shifted,” Williams said.

“We’re seeing the effects of sustained rental supply meeting softer demand. Rental prices will need to remain realistic to be competitive.”

Over the ten years to 2025, the national average rental price increased 47.8 percent compared to inflation of 35.3 percent over the same period.

Gisborne’s rent more than doubled over the decade, from $290 in 2015 to $641.

Southland and Manawatu/Whanganui also doubled.

Luke Somervell, spokesperson for Renters United, said the increase in national rent over 10 years was “extraordinary”.

“This $214 increase in just 10 years, that’s a lot of money for people. That’s a lot of cash, let alone the capital gains that people will also make when they cash in after they pay off their mortgages and so on.”

He agreed many of the young people who had left the country recently were likely to have been renters.

“The fact that it’s only dropped a couple of percent is not that encouraging, especially when we know the average wages haven’t even been able to keep pace with inflation…Maybe rents have decreased a little bit but it’s definitely not a party for renters at the moment, that’s for sure.”

He said no steps had been taken to help renters get a fair deal.

“They’re just sort of getting buffeted by these trends. And investors are happy about that… they’re looking at this and they’re thinking, great, we’re going to be able to cash in in the next 10 years. Hopefully this is just going to be a little dip for now. But don’t worry, you’ll still get your profits, no problem.”

He said more properties needed to be built, but people also needed to be supported to negotiate with their landlords and dispute their rents.

Williams said people who thought they were paying more than market rent could have a conversation with their landlords.

“Say ‘hey look, I’ve been looking around these other three-bedroom houses for $50 less a week, this week, can we have a little bit of negotiation here, I don’t really want to move, but I also would like to save myself $50 a week if I can do that…”

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

Source: Radio New Zealand

Many New Zealanders’ summer holidays have ended with a washout as wild weather battered the North Island.

Campers packed up tents, plans to travel to beach towns were abandoned and road trips turned around.

But what are your rights if you have to abandon plans?

Your accommodation

If you’ve booked an Airbnb or a hotel that you now won’t use, your rights will depend a bit on the terms and conditions you agreed to.

A spokesperson for Consumer NZ said it recommended reading these before making a booking.

“Pay particular attention to clauses about what happens if the accommodation can’t be used for reasons like a storm – this might be referred to as ‘act of God’ or ‘ force majeure’. Cancellation terms must be fair, otherwise the accommodation provider risks breaching the Fair Trading Act (FTA).”

If there is nothing in the terms and conditions to state what would happen, then people could rely on the Contract and Commercial Law Act (CCLA).

“The CCLA applies when a contract can’t be fulfilled for reasons outside the parties’ control. It gives people the right to request a refund and limits what the company can charge to reasonable administration costs.”

Consumer NZ said not all terms and conditions would be appropriate, though. If a company had given itself the right to keep a large amount of money, that was likely to be unfair.

If someone was entitled to a refund but refused it, they could ask their bank for help with a charge back.

Sometimes, you might be charged a fee to change a booking. This is allowed if it is outlined in the terms and conditions, but still needs to be reasonable.

Airbnb’s policy for cancellations in New Zealand is generally that you can have a refund if there is a severe and unforseeable event but normal bad weather won’t usually qualify unless the host agrees.

It says it encourages guests and hosts to find mutually acceptable solutions such as partial refunds or a change of dates.

Camping

The Department of Conservation said if a facility was closed due to weather, people would usually get a refund.

Visitor services manager Cameron Hyland said if the site was open but people chose not to travel because of the weather, refunds would not automatically be available.

“Weather conditions can vary and are outside DOC’s control. However, when severe weather may make travel unsafe, DOC may assess refund requests on a case-by-case basis. For example, we may consider a refund if someone was travelling through or from an area where a weather warning was in effect, even if the booked destination itself was unaffected.

“These situations are discretionary and aren’t guaranteed under DOC’s published terms and conditions. Refunds also aren’t applied automatically, customers need to contact the DOC bookings team to request one.”

Travel

Consumer NZ said if a flight was cancelled or delayed by the weather, travellers’ rights would be limited.

“For cancellations, the airline will usually offer you a credit or rebook you on the next available flight. Any additional costs you incur, such as accommodation or taxis, are on you. For ferry travel that’s disrupted by the weather, your entitlement will depend on the operator. You could be entitled to a refund, rebooking or a credit. Read the operator’s terms and conditions to see what you’re entitled to, or contact the operator directly.”

What about insurance?

You may find you have some cover if you have travel insurance.

A spokesperson for Southern Cross said it would usually cover situations where travel plans had been cancelled or postponed unexpectedly, or where costs had been incurred. It would not usually cover cases where someone had changed their mind about going.

In the year to June 2025, Southern Cross paid out more than $7000 for a tour that was cancelled because of severe weather, Consumer NZ said.

It said the top three most common claims for domestic travel were changes to journeys.

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