Kerre Woodham: Are these new changes the end of the world?

Big day today. Paid parental leave increases in line with increases to the average weekly earnings, so if you're about to go off on maternity leave, you will have an increase in parental pay for up to 26 weeks.

Regional fuel and diesel taxes gone, saving the drivers of Toyota Corollas - those fairies of the land, the wakas of the whenua – about $6 every time they fill up, but you will need that $6 because that's going to go somewhere else.

Higher rates are kicking in. In Auckland, Watercare is raising water bills by 7.2 percent, so that's going to hit households and the $5 prescription charges are back for those who are eligible. And I saw a lot of woe is me, end the world stuff.

Honestly, watch the Biden-Trump debate, that is the end of the world. The prescription charges at $5, not so much because there are exemptions for people 13 and under. There are exemptions for people holding a community services card or a dependent child of a community services card holder.

If you're 65 and over, you get an exemption and if you hold a prescription subsidy card you don't have to pay. And once you hit twenty prescription items that you have to pay for in a year, you don't have to pay any more.

So the end of the world as we know it and the decline of health of all New Zealanders - no, unlikely.

And there are plenty of places where you don't have to pay, where the chemists will absorb the charges, so I don't think it's quite worth the hysterical column inches that have been written about it.

What else changes today? We've got the reduced brightline test kicking in, meaning people who sell residential investment properties within two years of purchasing will have to pay tax on any gains receive. After two years, you're sweet. If you sell after three years, you won't be taxed on any profits.

Try and make a profit in this particular climate, and you'll be doing well. Also new rules for property loans apply as of today. Under the new Reserve Bank, debt to income rules, the majority of property buyers can only borrow up to six times their annual income from banks. If you're an investor at 7 times.

So what is that going to mean for you, if you are looking to buy a property? Yes, houses have come down in price, they're not at that those ridiculously overinflated prices they were immediately after Covid. And yes, the average wage has gone up.

Is that going to be enough for you to be able to get into your own home? I really do think this is a good investment in families having the parental leave. They get precious little, you know, by the time you've paid off student loans and you're trying to save for your deposit on your house and what have you.

We need new babies, otherwise we have to import them from overseas. So we either grow our own or import them, and we need more because the numbers of older people are growing and growing and growing and there aren't going to be the young workers, the tax base, to support all of these people who are now out of work. And who will need care and who will need health care.

So I'm all for the parental payments. Brightline tests -does that seem reasonable? Let get you back into the market. The prescription charges, I mean that was such a nonsense, the hoohah over that really and truly. You would have to work quite hard to find a chemist where you had to pay.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:06):
You're listening to the Carrywood and Morning's podcast from News
Talk sad.

Speaker 2 (00:10):
B Big day to day paid parental leave increases in
line with increases to the average weekly earnings. So if
you're about to go off on maternity leave, you will
have an increase in parental pay for up to twenty
six weeks. Regional fuel and diesel tax is gone, saving

(00:32):
the drivers of Toyota Corollas, those fairies of the land,
the walkers of the Fenera, they're to Toyota Corollas. Any
drivers have about six bucks every time they fill up,
but you will need that six dollars because that's going
to go somewhere else. Higher rates are kicking in in Auckland.
Water Care is raising water bills by seven point two percent,

(00:57):
so that's going to hit households. And the five dollar
prescription charges are back for those who are eligible. And
I saw a lot of oh woe is me, end
of the world stuff. Honestly, watch the Biden Trump debate.
That is the end of the world. The prescription charges
at five bucks not so much because there are exemptions

(01:18):
for people thirteen and under. There are exemptions for people
holding a Community services card or a dependent child of
a Community Services card holder. If you're sixty five and
over you get an exemption. And if you hold a
prescription subsidy card, you don't have to pay. And once
you hit twenty prescription items they have to pay for

(01:40):
in a year, don't have to pay anymore. So the
end of the world as we know it in the
decline of health of all New Zealander is know unlikely.
And there are plenty of places where you don't have
to pay, where the chemists will absorb the charges. So
you know, I don't think it's quite worth the hysterical

(02:02):
columnentses that have been written about it. What else changes today?
We've got the reduced bright Line test kicking in, meaning
people who sell residential investment properties within two years of
purchasing will have to pay tax on any gains received
after two years. You're sweet. If you sell after three years,

(02:24):
you won't be taxed on any profits. Try and make
a profit in this particular climate and you'll be doing well.
Are also new rules for property loans apply as of today.
Under the new reserve back debt to income rules, the
majority of property buys can only borrow up to six
times their annual income from banks if you're an investor

(02:47):
at seven times, So what is that going to mean
for you? If you are looking to buy a property, Yes,
houses have come down in price, they're not at that
those ridiculously overinflated prices they were immediately after COVID. And yes,

(03:07):
the average wage has gone up. Is that going to
be enough for you to be able to get into
your own home? So plenty to talk about it. If
you are a new parent taking parental leave, I really
do think this is a good investment in families having
the parental leave. They get precious little. You know, by
the time you've paid off student loans and you're trained

(03:28):
to save for your deposit on your house and what
have you. We need new babies otherwise we have to
import them from overseas. So we either grow our own
or import them. And we need more because the numbers
of older people are growing and growing and growing, and
there aren't going to be the young workers the tax

(03:51):
base to support all of these people who are now
out of work and who will need care and who
will need health care. So I'm all for the parental payments.
Does that seem reasonable. Let's get you back into the market.

(04:12):
The prescription charges. I mean, that was such such a nonsense,
the who are over that? Really and truly you would
have to you would really have to work quite hard
to find a chemistry you.

Speaker 1 (04:25):
Had to pay for more from carry Wood and Mornings.
Listen live to News Talks A B from nine am weekdays,
or follow the podcast on iHeartRadio.