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New Zealanders like a fixed term mortgage - 90 percent of ours are locked in. But we tend to fix for short terms. In the US, 30-year terms are common while here, there is almost nothing fixed for more than five years. Most New Zealand lending will refix within the next year. So what's going on, why don't we get a 30-year fix option, and would we want one anyway? The US's 30-year deals Antonia Watson, chief executive of ANZ, told 30' with Guyon Espiner that New Zealand options were more limited because of the interest rate risk involved for banks in long-term fixes. When banks lend money for a certain term, they need to know that they can access funding for that same term at a rate that works. They usually need to hedge to protect themselves against future interest rate movements, in case r...

Inland Revenue is consulting on the future of the tax system as it develops its next long-term insights briefing. File photo. Photo: NZME Inland Revenue (IR) is asking questions about the future of the tax system - including whether the country needs new types of tax, such as on capital gains and land. The issue of whether the country needs a tax on capital gains surfaced again this week, with ANZ's chief executive Antonia Watson telling RNZ she believed it was time for such a tax. Labour says it is looking at its tax policy and is considering capital gains, wealth or capital income taxes. IR is consulting on the future of the tax system as part of developing its next long-term insights briefing, which it produces in its role of providing advice to the ministers of revenue and finance. ...

Thousands of people who moved their money in 2020 never moved it back. Here's why that matters. Source link

A major issue with investment planning for things such as large roading projects was "poor strategic thinking", says Treasury. File photo. Photo: 123RF The government has been warned that business cases for many projects - even large roading projects - have become so weak that they are disconnected from reality. The Transport Ministry (MOT) has told the government that "investment decisions have become disconnected from the available revenue and market capacity," in proactively-released documents. "There has been a breakdown in the relationship between business case developers, decision makers and funders." This warning was issued in November, with the problems of poor planning going on for years, and persisting. "The system is not working effectively to support Cabinet decision-makin...

KMD said it continued to feel the effects of weaker consumer sentiment, with sales down 11.2 percent. Photo: RNZ / Nate McKinnon Outdoor goods retailer KMD Brands posted a steep full-year loss amid a sharp downturn in the wider sector and a one-off write-down in the value of its US footwear brand Oboz. Key numbers for the 12 months ended September compared with a year ago: Net loss $48.3m vs $36.6m Sales $979.4m vs $1.1b Underlying earnings $50m vs $105.9m Gross margin 58.9 % vs 59.1% Oboz impairment $40.3m No dividend vs 3 cents per share KMD, which also owned Kathmandu and Rip Curl, said it continued to feel the effects of weaker consumer sentiment, with sales down 11.2 percent from last year's record result. Its bottom line was also affected by a $40.3 million write-down in the val...

The Woolworths Disney cards were popular giveaways. Photo: Supplied / Woolworths Little Garden seedlings, Smeg knives, Wiltshire cutlery, Lego-style bricks and now Disney collector cards ... all marketing ploys from our biggest supermarkets to get more customers, with or without their children, through the door. But at what cost? And are the 'free' products really 'free'? On Sunday, Woolworths wrapped up its two-month Disney 'Worlds of Wonder' collectibles programme. There were 108 character cards of Disney, Pixar, Marvel and Star Wars characters, a rare holographic card and an album to put them all in. But you had to spend $30 or buy specific 'bonus card' products to get each potluck pack of three cards. One shopper told First Up her children enjoyed collecting them but she would hav...

About 45,000 port workers in the US are poised to strike, which may affect import and export trade. Photo: RNZ / Kymberlee Fernandes Port strikes in the United States could cause major disruption for importers and exporters in New Zealand. About 45,000 dockworkers at all the major US ports on the eastern coast and the Gulf of Mexico are threatening to strike on 1 October with pay talks at a stalemate. This comes as New Zealand exporters report feeling more optimistic about the coming year with new free trade deals potentially helping growth. Freight company C. H. Robinson's Oceania Vice President Andrew Coldrey said the industrial action could make global shipping schedules unreliable and increase costs. He said that will flow through to New Zealand trade businesses. "For those trading ...