Source: Aggregate and Quarry Association of NZ
Tax Reform – Public support for banking levy high ahead of cash strapped budget
A majority of the public support a banking levy, according to a Talbot Mills poll commissioned by the Better Taxes for a Better Future campaign. The Minister of Finance has previously indicated she was considering a banking levy, like the ones in Australia and the UK, ahead of this year's Budget. As funds get increasingly tight, the popular banking levy looks like an obvious solution.
The poll asked:
- The Government is considering implementing a new targeted tax or levy on the major banks, similar to ones that operate in the UK and Australia. Supporters say this would help smaller banks compete and help protect the economy in the event of a banking failure requiring a bailout. Critics say that these levies would be passed on to consumers in a range of bank charges.
- Overall, how strongly do you agree or disagree that the government should bring in a major bank levy?
52% of people who responded to the poll said they agreed the government should bring in a major bank levy.
“This poll shows that people are increasingly frustrated with how unbalanced our economic system is. Interestingly, 59% of National voters and 57% of ACT voters support a major bank levy – showing this is a move that has support across the political spectrum,” says Kate Stone, spokesperson for the Better Taxes Campaign.
“In the lead up to the budget we're being told there's no money, and seeing further cuts, for example to fees-free for our rangatahi, to public service jobs and social housing support. At the same time we're seeing big corporates, like banks, fuel and energy companies, and supermarkets continuing to make huge profits. And New Zealanders are asking themselves why ordinary people are constantly being asked to tighten our belts, to expect less.”
“The Finance Minister had signalled the government was considering a levy on banks, and the public have spoken loud and clear, they support this move,” says Stone.
“A banking levy would bring in more revenue – $275-300m – which we could use to fund critical public services, like maintaining social housing support for struggling whānau and building more social housing for those on the waitlist. But it could also serve to rein in excessive profits and level the playing field for smaller banks.”
“Importantly in these uncertain times, banking levies act as a sort of insurance policy in the event that tax payers are called upon to bail out a failing bank, like we saw during the Global Financial Crisis. It's about big banks making a fair contribution to our economy now and in the event of a crisis,” says Stone.
“In 2025 the “Big Four” banks – ANZ, ASB, BNZ and Westpac – declared total profits before tax of $9.53 billion and over the last 10 years have increased their NZ profits by 25% in real terms. If we asked these banks to contribute just a fraction of that to our economy we could make a start on rebalancing the books and sharing the load of supporting our communities more fairly.”
New investor settings support growth and giving – BusinessNZ
Source: BusinessNZ
Budget 2026 – Budget must balance discipline with bold choices for growth – Business Canterbury
Businesses across Canterbury are looking for a Budget on Thursday that shows the Government is responding to current conditions in the same way they are, through careful cost management and clear prioritisation, while still maintaining a strong focus on the future.
Business Canterbury Chief Executive, Leeann Watson says, “The signals from Government to date have been encouraging. Our latest Canterbury Business Survey, which closed last week, shows 35 per cent of businesses are positive about the Government’s response to conflict in the Middle East, with 47 per cent remaining neutral. This is an indication that businesses are recognising pragmatic decision-making from the Government in a challenging global environment.
However, while short-term discipline is essential, it cannot come at the expense of long-term growth.
“It’s in an environment like this that bold decisions matter most. In its Budget this week, the Government must keep its eyes firmly on lifting productivity, encouraging investment, and supporting sustainable economic growth.
“With limited room for large-scale spending or relief on core cost pressures such as fuel and other inputs, productivity-focused policies are the most practical and impactful pathway forward. There are existing tools that could be strengthened quickly to deliver meaningful gains.
Some opportunities include:
Expanding and enhancing Investment Boost, including opening eligibility to a wider range of asset classes such as second-hand assets and increasing the claimable percentage.
Raising the instant asset write-off threshold from $1,000 to $20,000 as it is in Australia (for small businesses) to improve cashflow and reduce barriers to investment.
Introducing a targeted R&D grant or tax credit for small and medium-sized businesses, bridging the gap between the ‘New to R&D’ grant and the RDTI scheme, where current compliance requirements can be a barrier.
“Businesses have navigated disruption after disruption over the past five years. They are resilient, but they need the right settings to invest, hire, and grow.”
Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the second largest Chamber of Commerce in New Zealand and the largest business support organisation in the South Island. It advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.
Employment Issues – Te Puni Kōkiri restructure heads to mediation – PSA
Source: PSA
Openings – New inclusive café expands Delta’s services, creating more ways to connect
Source: Rata Foundation
ASB: Strait closure may squeeze NZ far beyond fuel
As the Middle East conflict enters its 12th week, new ASB analysis suggests the economic fallout for New Zealand is spreading well beyond the pump, with supply chain costs rising and household spending expected to come under further pressure.
“While the immediate effect has been higher fuel prices, that’s only one piece of the puzzle. The broader story is how the entire cost shock (which includes fertiliser and petrochemicals) spreads through supply chains, lifting the cost of manufactured goods, packaging, freight and farm inputs, and the flow on effects of that to consumer spending,” says Kim Mundy, Senior Economist at ASB.
Those pressures are already showing up in real costs for some businesses with freight operators providing the clearest early examples. Earlier this month, shipping giant Maersk applied a 27% fuel surcharge while the Interislander almost doubled its fuel surcharge for commercial vehicles crossing Cook Strait – increases likely to be felt across a broad range of New Zealand businesses.
ASB expects the initial inflationary pressure to be felt most acutely in food, freight, plastic products and other goods with high transport or packaging costs. At the same time, discretionary sectors such as retail, hospitality, arts and recreation may face softer demand as higher fuel costs reduce household spending power.
“The effects of the Strait’s closure reach further into the economy than may have first been apparent, with few sectors likely to escape entirely. Agriculture, manufacturing, construction and transport appear most exposed, but even less fuel-intensive businesses could be hit as households shift spending towards essentials. That creates another headwind for economic growth,” says Mundy.
“Roughly a quarter of our economy has a high, or very high, exposure to at least two of the key disruptions we analysed in our research so for businesses, the message is to look beyond direct fuel use and assess their exposure across suppliers, freight, packaging inputs and customer demand while the conflict in the Middle East persists,” says Mundy.
Other recent ASB reports covering a range of commentary, can be accessed at our ASB Economic Insights page: https://www.asb.co.nz/documents/economic-insights.html
Opinion – From Victimhood to Empowerment: Palestine Through the Eyes of Its Indigenous People
Rural News – Major breakthrough in battle against wilding pines – Federated Farmers
Source: Federated Farmers
Activist Sector – New spend on war is lunacy – Peace Action Wellington
“The government is allocating another $215 million to the frigates – both of which were just upgraded at an actual cost of $700 million – nearly twice what was budgeted with years' long work overruns by Lockheed Martin. This is the usual rort of the weapons industry,” said Valerie Morse, member of Peace Action Wellington.
“This announcement shows where the Coalition's priorities are. Instead of building hospitals, schools, houses, aged care facilities and a clean energy transition, this government is intent on waging war alongside the United States.”
“The Minister likes claims the world is more dangerous. What he is not saying is that country most responsible for that very instability is our 'friend' the United States. The US is engaged in an illegal war on the people of Iran, and are arming and funding the ongoing genocide in Gaza. In 2025 alone, the US bombed nine different countries.”
“It is the US that has been pushing this government to spend more on war since the 2023 election. There has been a constant stream of US military and State Department people in and out of Wellington to ensure the government commits to a massive military build up – and interoperability with US forces.”
“Instead of signing up for the US empire's endless wars – and spending our children's inheritance on weapons – we need to build a strong and vibrant Aotearoa New Zealand that ensures everyone here has what they need to lead a dignified life.”
“The announced spending on new weapons will be funneled straight into the pockets of global weapons companies like Lockheed Martin, instead of into ensuring people here are fed, clothed, housed and employed.”
