Watts SimonSIMON WATTS (National—North Shore): It's an absolute pleasure to rise on behalf of the National Party as a member of Parliament for North Shore on the Taxation (Annual Rates for 2022-23 Platform Economy and Remedial Matters) Bill (No 2). Gee wasn't it interesting listening to the Minister of Revenue on some of the comments around how good this tax bill is? They were definitely through rose-tinted glasses I think in terms of the overall benefits of this bill because what this bill doesn't do is actually deal with the key issue that Kiwis across this country are facing. This bill shows exactly what is wrong with this Government. At a time when Kiwis across this country are suffering from the impacts of a cost of living crisis which is really hurting families and businesses and the costs that are forcing those families to be making those impossible choices around what they can afford and what they can't—mortgage payments vs food on the table—when the Government's only priority should be to be putting money back into the back pockets of hard-working Kiwis the Government through this bill has decided Well what a great time it is to come up with a whole lot more new taxes." Yeah that's their solution. The tax take is up $43 billion since Labour came into power and that's over $17500 per New Zealand household—$17500 per every single Kiwi household—since National were in power. Every dollar of that increase comes out of the back pockets of hard-working Kiwis—out of their pay packets out of businesses.And what is that money being spent on? Well I'll give you a bit of a taster but Kiwis know: light rail three waters and high-priced consultants—just to name three. If I had an hour to do this call which I'll take the liberty but I don't think I'll get I could go on for a long time on that and I will continue back to the bill.The reality is: this can't continue and I'm going to work my way through some of the key components and just have a little bit more of a dialogue because I think it's important for those at home watching before they sit down to have dinner this evening in terms of the implications of this bill. It includes no changes in regards to annual income tax rates in regards to the impacts of high inflation. There is no inflation adjustment on the tax thresholds. That is basically meaning as I've said Kiwis at a total level are being taxed $43 billion more and this is compounding as the inflation rate continues to increase.We've also got within this bill the introduction around what is referred to as the "app tax" and you hear comments from the other side in regards to reducing distortion and other factors. Well that's absolutely rubbish—absolutely rubbish. This bill absolutely establishes an app tax and the changes in regards to the platform economy mean that for those people who have got an Airbnb—OK these aren't villains these aren't big bad businesses. Someone who does Airbnb and rents out the spare room a couple of times a year—you know if they're going away for the long weekend and they do the Airbnb they rent it out. These people aren't bad people but this Government's decided "You know what let's get in there and let's tax them." even though the income which they're deriving from that is below the GST threshold which is at 60 grand. Do you know what? The average Airbnb revenue across the country is in the region of just under $5000 per annum—significant you know 10 11 12 multiplier on what the actual threshold is for GST but this bill introduces that and that means as a result it is going to place a higher burden of cost on hard-working Kiwis mums and dads across the country and that is not good.I heard a speaker before quote "in the so-called real world"—did anyone else hear that? It was an interesting quote. The so-called real world—well I can tell you what the so-called real world which is right outside those doors are the ones that actually have to foot the bill for this Government's unlimited appetite for taxing more off hard-working Kiwi families and spending it like there is no tomorrow.The other aspect in regards to comments that we heard is that everyone loves this bill everyone thinks this bill is you know "bread and butter" to use the quote which seems to be in vogue at the moment on the other side. Well I'll tell you what: the New Zealand Law Society described these changes as representing—and I quote—"significant deviation to the orthodox GST treatment of services supplied in New Zealand." Right let's be clear: this is not something where everyone thinks "Hooray! It's about time that these changes have been implemented." The New Zealand Law Society amongst others across this country thinks that a number of these changes in this bill are absolutely a significant deviation. They aren't sort of soft words; they're pretty hard-hitting and go to the heart of a Government that is just hungry to feed its addiction to spending through taxing Kiwis more.The other aspect that we haven't talked about but no surprise for those sitting at home going "Mmm OK what else does this bill do?" because it's a tax bill right? It's not the most exciting piece of legislation on the table but it should be because it has significant implications. But this bill also introduces significant information requirements on a number of businesses to have to provide more information around what they are doing through to the IRD. The IRD's getting a little bit of a reputation for information gathering. They say they're not using it to come up with any new crafty ideas for taxes. Well I wasn't born yesterday right? I mean of course they're gathering this information to make recommendations around future tax policy; it's just they haven't quite told us yet what those new flashy-dashy ideas will be. But I can tell you right here right now that they will be having and will be coming out with a whole lot more ideas on new taxes because that's the only way that they're going be able to afford this significant amount of spending.Shanan Halbert: You haven't even costed up your plan mate.SIMON WATTS: And I'm hearing the member from Northcote and it's always good to get a bit of commentary from the member of Northcote on this but I'll get back and we'll keep going and welcome any more input as we go through.So let's talk about the fringe benefit tax (FBT) exemptions to allow people to use environmentally friendly modes of travel. We heard around the points before that this is again an element of distortion. The challenge is and we heard this in the committee of the whole House stage that these rules are not as they stand practical to implement. They're not practical to implement because there's two scenarios which play through: one is in regards to if I work for an organisation and I go and buy my bus ticket on the way to work and then I get my employer to refund that bus ticket well that'll be subject to PAYE tax right? Whereas if my organisation or business or company does a deal with Auckland Transport and provides me with a pass to go on the bus for free and they do that deal directly with Auckland Transport in this example then that will be exempt from FBT. So you've got two different scenarios playing through and I appreciate we might be getting into the detail but this piece of legislation has not dealt with the practical nature of the bill. The Minister said at the committee of the whole House stage that these rules do need to be practical. Well that seems reasonable. The challenge is he just hasn't followed through with making sure that that is the case.So I'm really disappointed in this bill. Instead of a pragmatic policy like indexing taxation and making sure that that is dealt with the Government is basically dead set on implementing this app tax. For families that are already being squeezed across the country for businesses that are struggling to open up their doors they get no hope from this Government because it doesn't seem to be that anything in this bill is going to hit the mark. Basically National oppose this bill and we're going to keep fighting for Kiwis to get a fair go."