The wealthiest New Zealanders pay tax at half the rate of ordinary people, an IRD report has found.

An IRD study into the tax rate paid by a sample of 311 New Zealanders found they paid a median effective tax rate of 9.4 per cent.

Treasury reckons a comparable tax rate for a “middle wealth” Kiwi was 20.2 per cent - that rate includes GST they pay and any benefits someone might receive like Working for Families. If you leave those out, their tax rate is even higher.

The median wealth of the families was $106 million - but a handful of extremely wealthy people meant the mean wealth of those families was $276m.

Revenue Minister David Parker said the report showed “tradies, nurses, school teachers, hospitality workers, hairdressers, cleaners, engineers and small business owners all pay much higher effective tax rates than their wealthier fellow Kiwis.

“We tax those who earn all their income from salaries at a much higher rate than the very wealthy,” he said.

The culprit in all of this is capital gains, which are largely untaxed in New Zealand.

Newstalk ZB Political Editor, Jason Walls, joined Simon Barnett and James Daniels Afternoons to discuss the report's findings.

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The Prime Minister says the Government is not releasing any new tax policy.

An Inland Revenue report released early this afternoon will estimate the effective tax rate of the country's rich, taking into account their full economic income, rather than just taxable income. 

Chris Hipkins told Mike Hosking they were clear in 2020 about their tax policy.

He says they're sticking to that and they'll let people know well in advance of the election what their tax policy for the next term is.

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More information is to be released on how much the rich are paying in tax.

The Inland Revenue report will estimate the effective tax rate of the country's  wealthiest - taking into account their full economic income, rather than just taxable income. 

PwC Partner Geof Nightingale says the tax system is collecting adequate revenue and there's no revenue crisis, even with cyclone expenses.

He told Mike Hosking the report will spark a new tax.

Nightingale says a new tax would be very complicated and take a long time - so he thinks it's highly unlikely.

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New research is coming out about how much tax New Zealand's rich are paying.

The Inland Revenue report will estimate the effective tax rate of the wealthiest families, taking into account their full economic income, rather than just taxable income. 

Deloitte Tax Partner Robyn Walker told Kate Hawkesby it's expected to show they're paying tax rates that are lower than marginal tax rates.

But she says Treasury is also releasing their report on tax rates of the average New Zealander and expects that to say a large section of that population is also paying below marginal tax rate.

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What systems work best? 

What questions should couples ask when talking about money? 

What does money mean for you?  

What is your safety number? 

What is debt ratio number? 

How do you need to be taken care of in relation to money? 

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Hannah McQueen has been running enable.me for more than 15 years, and in that time has seen a huge change in the number of people who own shares. The sharesies/hatch/DIY investor revolution means many people have a portfolio when previously it was only those who had significant wealth, or a personal passion, who did. 

The problem is there are more and more people randomly selecting shares, rather than investing strategically, or in a diversified way. FMA research shows a decent number of people invest due to FOMO or because someone said it was a good idea, without doing any research themselves – and our observations echo that. 

As a learning mechanism, or a bit of fun – great – but for most people the margin for error to land them where they need to be for retirement is too small to invest too much that way. 

It’s not a dig at investment platforms – just a warning that there are risks to directing too much of your investment funds in a scattergun approach. I liken it to picking the route before you’ve identified the destination – who knows where you’ll end up. 

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Apple is now a bank 

It's offering a savings account earning an extremely competitive interest rate! Their Apple Card partner Goldman Sacks is also powering this savings account. It's tough to define these days what "Apple" is as a company - they make devices, offer cloud services, create TV shows, sell apps, and now offer a savings account. 

Goodbye Twitter's blue checkmarks 

After many many false starts, the blue checkmarks people had for being 'notable' have disappeared. The only way to get a blue checkmark now is to pay for Twitter Blue - which requires you to verify your phone number. Elon Musk tweeted that he is paying for some of the Twitter Blue accounts personally - like that of Lebron James. Others have a blue checkmark and want to get rid of it because they seem embarrassed for paying for Twitter.  

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Brace for higher prices at the petrol pump.

Finance Minister Grant Robertson has just confirmed to Newstalk ZB that the Government won't be extending the current fuel tax discount beyond the end of June.

The Government extended the 25 cents per litre discount for a fourth time back in February, against Treasury advice.

Prime Minister Chris Hipkins has previously refused to rule out further extensions.

But Grant Robertson has revealed to Tim Dower there will be no further extensions in next month's Budget.

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Victims of retail crime are getting a further $9 million in support.

Police minister Ginny Andersen has made the announcement, topping up the crime prevention fund to $15 million .

It goes towards the likes of fog cannons, security sirens and CCTV systems.

Dairy and Business Owners Group chair Sunny Kaushal joined Tim Dower to discuss.

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Coromandel businesses are crossing fingers for a bumper Anzac weekend after its local economy lost $30-million in the year's first quarter.

A driving lottery has begun via the coastal route until Tuesday as State Highway 25A remains closed to vehicles.

It features cameras in secret locations from Thames all the way around to Waihi, photographing random vehicles.

Prizes include stays at a beach resort, dive trips and dozens of oysters

Destination Hauraki Coromandel's Hadley Dryden told Roman Travers January's poor weather made it a tough summer for local operators.

He says for a community reliant on tourism and visitors, it's been hugely significant.

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