Source: Taxpayers Union
It was revealed last week, that the tax break for racing industry bloodstock is expected to cost significantly more than previously anticipated. The tax breaks for the racing industry have faced ridicule as the only tax cut in Budget 2018.That’s not surprising: the racing industry has historically been a strong supporter of New Zealand First. The Electoral Commission recently found that Sir Patrick Hogan was in breach of the Electoral Act when he funded a full page ad in support of the party prior to the General Election last year.
At Budget 2018, the cost of the tax break was expected to equal $4.8 million over the next four years, however IRD officials expect the tax break will cost up to $40 million – a 733% increase in the cost of the policy. That means taxpayers will be on the line for an additional $35.2 million over the next four years, which is all added onto Winston’s Dowry!
Winston’s Dowry as at 2 July: $5.168 billion ($2989 per household)
The total cost so far is $5.168 billion – or $2989 for the average New Zealand household, although if officials continue to increase the expected cost of policies, this figure will grow.
“The Dowry” to date:
Provincial Growth Fund: $3 billion or $1735 per household
Additional funding for the Ministry of Foreign Affairs and Trade: $1.144 billion or $661 per household
Additional funding for the Ministry of Defence: $426 million or $246 per household
Additional funding for learning support: $272.8 million or $157 per household
Additional funding for Oranga Tamariki: $269.9 million or $156 per household
Adjusted ‘Hot horses’ tax break, the new Forestry Hub, and a rename for the Ministry of Children: $55.4 million or $32.05 per household