Stats NZ: 10% have 60% of country's net worth

[donna]

What do we think of the Wealth Statistics in this article on Interest.co.nz

Wealth among top 1, 5 and 10 percent is growing.

However distribution is on a par with other OECD countries.

The wealthiest among us invest in shares etc....as they have the readies to do so.

The most-valuable asset held by Kiwi households was the house they lived in, which made up 59% of all non-financial assets. One in two households owned the house they lived in. Housing also contributed the most to debt levels – mortgage debt was over 60% of household liabilities.

So in theory mortgage debt at 6 times income - interesting.

Stats NZ reports 14% of New Zealand households own real estate other than the home they live in (holiday homes, timeshares, commercial and residential investment properties, land).

cheers,

Donna

[Bobsyouruncle]

This is the human condition. Wealth will never be distributed evenly. It's fantasy. I remember some research a few years ago where they tried to model what would happen is all the worlds weather was evenly distributed. They concluded that in under 12 years things would be back how they were.

[PC]

How do you cure stupid & lazy?
Tax the working middle class some more I guess.

[Wayne]

The top few % pay most of the tax also.
Is there a problem I'm supposed to be seeing in these stats?

[Bobsyouruncle]

That of course isn't true Wayne but we like to think it is. The middle income earners pay the majority of tax surely?

[Perry]

That of course isn't true Wayne but we like to think it is. The middle income earners pay the majority of tax surely?

Yeah, right!

---

Small Number Of Taxpayers Bear The Brunt Of New Zealand Tax Bill
26 June 2016

More than one in four households are contributing nothing to New Zealand's tax take. A table from Finance Minister Bill English's office shows 663,000 households - or 40 per cent - receive more in tax credits and other benefits than they pay in tax. Thousands more are neutral contributors, or are close to it.

Households earning less than $50,000 receive more in credits than they pay in direct income tax by about a third. On a net tax basis, 48,000 households pay 28 per cent of all tax. By comparison, the top 3 per cent of individual income earners, earning more than $150,000 a year, pay 24 per cent of all tax received.

[Don't believe the Hype]

There was an article in the Dom post the other day quoting a stat that 40% of households are net beneficiaries - meaning they get more in govt assistance than they pay in tax. Used example of family on household income of $60k from memory receiving more in support than tax paid.

if that stat is true then it stands that 60% of all households pay 100% of the tax on a nett basis.

[Wayne]

That of course isn't true Wayne but we like to think it is. The middle income earners pay the majority of tax surely?

What Perry said!
Always been the case

The 40% not paying any tax (effectively) didn't get any traction in the media - I suspect people don't really want to know.

[Perry]

The Top Tenth Of Kiwis Hold Well Over Half Of New Zealand's Wealth
28 June 2016

The Government is dismissing claims the rich are taking an increasing share of New Zealand's wealth, saying there is "nothing out of the ordinary" with the existing gap. In the year to June 30, 2015, the top 10 per cent of individuals held about 59 per cent of the wealth in New Zealand, compared to about 54 per cent in 2009/10. The top 5 per cent of individuals held around 45 per cent of the wealth, while the top 1 per cent held about 22 per cent.

But Finance Minister Bill English dismissed the significance of the figures. "Wealth distribution among households in New Zealand is around average for OECD countries - about the same as Canada, but considerably more equal than the Netherlands and the United States so it's nothing out of the ordinary." The figures show that in New Zealand, the wealthiest 1 per cent of households (rather than individuals) have 18 per cent of the wealth. In Australia, the figure is 13 per cent.

[Bobsyouruncle]

Well that's a slightly different topic. Their tax is being credited back but they are still in the major tax payers on paper. If the top earners are only paying 24% of the tax then that proves my point. They pay very little tax relative to income, unlike the middle class.

[Wayne]

Well that's a slightly different topic. Their tax is being credited back but they are still in the major tax payers on paper. If the top earners are only paying 24% of the tax then that proves my point. They pay very little tax relative to income, unlike the middle class.

They pay no net tax - not a different story at all!
It is money in the hand that counts and 40% have more because they, net, don't pay tax.

Are you suggesting that the top 3% of income earners should pay more than 24% of the tax?
Why?

[Bobsyouruncle]

Well based on the stats if they are in the highest tax brackets should be paying 33% of the tax shouldn't they? They are being unfairly taxed in the sense that many lower income people are being credited and therefore paying none but I wonder how evenly distributed those credits are.

Still disagree over the story bit but hey who cares. The fact is those middle income earners are being taxed at 33 cents int he dollar presumably. They are then getting a benefit to offset it currently. That may not last.
Generally in western economies the middle class keep the troughs full not the wealthy.

One alos needs to consider the wealthiest are paying 24% of known or declared income who knows what the actual is?

[Wayne]

One alos needs to consider the wealthiest are paying 24% of known or declared income who knows what the actual is?

They aren't paying 24% or known or declared income - they are paying 24% of all the tax that is collected by the Govt.
I think you have the wrong end of the stick in what you think you read.

3% of people are paying 24% of the income tax collected by IRD.

[Bobsyouruncle]

But what percentage of the total income do they earn. That's what determines whether they are paying a lot of tax or a little.

[drelly]

But what percentage of the total income do they earn. That's what determines whether they are paying a lot of tax or a little.

Nominally, it is a lot, regardless of what percentage they make.