The SME Stream

Should the retirement age rise to 67? Liam Dann and Tamsyn Parker discuss the growing cost of NZ Super and whether younger generations are being asked to foot the bill. They also look at the surprising figures opposed to the potential rise in retirement age.

Plus, a new levy on banks and insurers, the Heartland-TSB merger and what a split OCR vote could mean for mortgage holders.

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TSB and Heartland Bank are looking to join forces by the end of the year.

TSB owner Toi Foundation's seeking feedback on the plan to join with Heartland Bank, to the tune of $620 million.

Finance Minister Nicola Willis welcomes this decision to team up and take on the big Australian banks.

"That's positive, and good for the state of banking competition."

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Deloitte's Robyn Walker on tax changes and how they'll affect kiwi businesses. 

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Investment strategist, Zoe Wallis says there may be cause for optimisim in global markets.

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New Zealand's cementing itself as a premium tourism destination. 

Market data from Grand View Research estimates our luxury travel market brought in more than $8 million last year and could double by 2033. 

Luxury Travel specialist Southern Crossings says overseas couples on their honeymoon for instance, consistently spend about the equivalent of a Central Auckland house deposit. 

Tourism New Zealand CEO René de Monchy told Heather du Plessis-Allan says we have amazing luxury offerings. 

He says coming out of Covid, people are really valuing experiences and that translates into their behaviour. 

“So people are saying after a few years locked up, that’s not a natural way to be. Travel is important, experiences are important, and they’re willing to spend the money to do it.” 

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Airlines are taking another hit from the ongoing conflict in the Middle East. 

Oil prices jumped 7% after an Iranian news agency announced Tehran has suspended the negotiations with the US.  

Contributing to the dwindling stocks of jet fuel is a new ban on exports by Russia, set to last until the end of November. 

Business Correspondent Vicky Pryce told Francesca Rudkin airlines are also beginning to be affected in terms of the value they have in the stock markets. 

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There's a view a merger by Heartland and TSB won't hand the big four banks a massive blow. 

Heartland Bank has struck a deal to buy TSB for $620 million, pending consultation and regulator approval. 

Massey University banking professor Claire Matthews says the combined bank will still be smaller than the big four, and Kiwibank. 

She says a lot of work's still needed to increase competition.

"It's not necessarily going to open up a huge access to capital, which is what's really needed for them to grow, and to become truly competitive." 

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A banking expert says a TSB–Heartland Bank merger may not transform the market but could still be a good thing for Kiwis.  

Heartland has struck a deal to buy TSB for $620 million and form a new entity by the end of the year, pending consultation and regulatory approval. 

Banking Reform Coalition Convener Kent Duston told Heather du Plessis-Allan the banks' regional focus is a point of difference.  

He says compared to the big Aussie banks, both have a great reputation for good customer service and doing things well. 

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ANZ reckons the bounce in consumer confidence comes from a small relative decline in petrol prices for May. 2degrees business wrap with Garth Bray. 

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This week's budget announcement had a focus on sorting out the books, and no straight sugar hits for individuals.
Infrastructure, healthcare and education seemed to be the clear priority of our fiscal plan, but three  relief for the cost-of-living pressure many face. 

Along with that, council rates have gone up for Auckland and the South Island's West Coast, and the Reserve Bank's signalled that there will be an increase to the OCR shortly - so the period we've seen of low interest rates on a mortgage is coming to an end. 

So how can we prepare ourselves for a toughening economy? Was it good that we didn't have any government handouts? 

Managing Director for the Private Office - Nick Crawford - joins Tim Beveridge for Smart Money... 

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