The most common rort is when MPs claim a tax-free Wellington accommodation allowance when they already own an apartment in Wellington. National's Louise Upston has been in the firing line for this – but at least she has the excuse of needing somewhere to stay in Wellington.
NZ First's Andy Foster – literally the former Mayor of Wellington – is claiming $36,400 (tax-free) per year to stay in his family home in Wellington. Taxpayers are coughing up 36 grand a year for him to stay in a house he's owned for 26 years! Foster gets the money because he says his "primary place of residence" is a second property in the Wairarapa he purchased last year. Literally, this MP moved away from Wellington once he became an MP.
But there’s another perk that’s even more outrageous — and Chris Hipkins is using it.
It's not well known, but MPs enjoy a gold-plated pension scheme. For every dollar they invest, taxpayers cough up 250% of the amount. That means that an MP who puts aside eight percent of their salary literally gets $36,200 on top of their salary as a ‘top-up'.
I don't know about you, but I've never had a job where I get an extra twenty percent of my salary topped up into my KiwiSaver.
But it's even worse than that. Unlike ordinary KiwiSaver, MPs can direct this taxpayer-subsidised retirement money into personal schemes.
And Chris Hipkins has done just that.
Hipkins' retirement scheme "invests" in just one thing: his beach house!
Let's cut the crap. This isn't a retirement scheme, it's an MP slush fund.
You and I can't set up a retirement scheme that "invests" in a luxury beach house.
Chris Hipkins is being evasive. He says it's "his money" and it's his "entitlement".
Entitled is right. Compare the rules MPs have set for themselves with the rules they set for KiwiSaver. KiwiSaver funds can only be used for a first home, financial hardship, or, well, retirement. Not a luxury bach.
Hipkins was quick to criticise when the heat was on the Government. But now he's on the run.
But there’s another perk that’s even more outrageous — and Chris Hipkins is using it.
It's not well known, but MPs enjoy a gold-plated pension scheme. For every dollar they invest, taxpayers cough up 250% of the amount. That means that an MP who puts aside eight percent of their salary literally gets $36,200 on top of their salary as a ‘top-up'.
I don't know about you, but I've never had a job where I get an extra twenty percent of my salary topped up into my KiwiSaver.
But it's even worse than that. Unlike ordinary KiwiSaver, MPs can direct this taxpayer-subsidised retirement money into personal schemes.
And Chris Hipkins has done just that.
Hipkins' retirement scheme "invests" in just one thing: his beach house!
Let's cut the crap. This isn't a retirement scheme, it's an MP slush fund.
You and I can't set up a retirement scheme that "invests" in a luxury beach house.
Chris Hipkins is being evasive. He says it's "his money" and it's his "entitlement".
Entitled is right. Compare the rules MPs have set for themselves with the rules they set for KiwiSaver. KiwiSaver funds can only be used for a first home, financial hardship, or, well, retirement. Not a luxury bach.
Hipkins was quick to criticise when the heat was on the Government. But now he's on the run.
The reality is MPs from all political parties are taking advantage of a system designed to screw the scrum and avoid transparency.
But what makes this revelation so damaging for Chris Hipkins is his previous criticism of people investing in property and housing, rather than equities and productive assets.
In fact, Chris Hipkins wants a capital gains tax because he says property 'investment' is damaging New Zealand. Now we know that's exactly what he's up to.
We at the Taxpayers' Union say MPs' allowances, including for accommodation, should be limited to cover out-of-pocket costs only. That means an end to the tax-free "no questions asked" (no receipts required) allowances.
It's the same approach any employer takes. Work-related expenses are reimbursed, rather than it all being a slush fund.
Second, transactions should be arm's-length, so MPs aren’t renting their own properties for their electorate office or Wellington accommodation. MPs should not be allowed to be their own landlords for the purposes of enriching themselves.
Third, the gold-plated superannuation scheme should be scrapped. Replace it with a normal, no-hidden-perks KiwiSaver, just like everyone else.
Reasonable minds can differ on what MPs should be paid. By eliminating these hidden perks, it might mean MPs' pay goes up to compensate.
But that is a better outcome for transparency and public trust than MPs enjoying hidden entitlements to secretly 'top up' their pay.
Jordan Williams is a constitutional and commercial lawyer who is Executive Director & Co-founder of the Taxpayers' Union. This article was sourced HERE
But what makes this revelation so damaging for Chris Hipkins is his previous criticism of people investing in property and housing, rather than equities and productive assets.
In fact, Chris Hipkins wants a capital gains tax because he says property 'investment' is damaging New Zealand. Now we know that's exactly what he's up to.
We at the Taxpayers' Union say MPs' allowances, including for accommodation, should be limited to cover out-of-pocket costs only. That means an end to the tax-free "no questions asked" (no receipts required) allowances.
It's the same approach any employer takes. Work-related expenses are reimbursed, rather than it all being a slush fund.
Second, transactions should be arm's-length, so MPs aren’t renting their own properties for their electorate office or Wellington accommodation. MPs should not be allowed to be their own landlords for the purposes of enriching themselves.
Third, the gold-plated superannuation scheme should be scrapped. Replace it with a normal, no-hidden-perks KiwiSaver, just like everyone else.
Reasonable minds can differ on what MPs should be paid. By eliminating these hidden perks, it might mean MPs' pay goes up to compensate.
But that is a better outcome for transparency and public trust than MPs enjoying hidden entitlements to secretly 'top up' their pay.
Jordan Williams is a constitutional and commercial lawyer who is Executive Director & Co-founder of the Taxpayers' Union. This article was sourced HERE
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