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Kath's avatar

A UBI of $19,400.00 p.a. per person would REPLACE universal Superannuation and yet be close to $8000.00 p.a. less than a couple over 65 currently receives together in Superannuation.

If their family home, paid off over many years on the basis it would then be their chief family asset, has a fairly average land value, they will be faced with paying or deferring about $10,000 in land tax p.a.. This on top of council and water rates, insurance and essential maintenance - before trying to cover food, power, health and other costs.

What this would amount to is a huge incentive to get into a little home with virtually no land. But very few such homes currently exist that would be one level, safe for aging people, and close to amenities, as they become less mobile.

Even retirement villages are now finding it difficult to fund building as fast as they were doing, and a land tax would push their prices for homes up dramatically.

If aging parents wanted to age in place in the family home, or could not find somewhere to downsize to, their children and grandchildren would be big losers, as even the reduced (by the new land tax) capital value equity in the family home was stripped further away by the land value tax payments - made or deferred.

And the incentive for younger parents everywhere to go out to work, build careers and family resources for their children and grandchildren would be seriously weakened, as so much asset value would be continuously grabbed by Government and handed to strangers in UBI, who might or might not bother to work.

I cannot understand how so many people have been taken in by Opportunity Party. They are wanting to usher in a downward spiral for all the families in New Zealand who are productive hard workers. Eventually this would also make less available for those eagerly putting their hands out for money others worked for.

Ken Tod's avatar

Thanks for this article. I agree wholeheartedly. This sentence would hit the hardest for most:

"I didn’t work all my life – and continue to do so – to have the fruits of my labour and the property I own taxed to oblivion."

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