Thursday, October 4, 2012

Yes, They Even Tax Carparks. Best Way to Stop Christchurch Rebuild? Tax It.

[Interview with a typical CBD employer.]


So, I’m a little business operating in the CBD, offering consultancy services. I’m struggling because it’s tough out there. I’m reliant on a skilled workforce, and in New Zealand I’m competing with the whole of Australia for good employees who are productive and generate business.

There’s a problem though. Parking. I’ve actually lost employees in the past because the cost, and as importantly, inconvenience of finding parking in the CBD, was prohibitive on the first part, and oftentimes impossible on the second part, some employees taking up to half an hour sorting out parking arrangements, and being financially much worse off by the time they find parking from their wages, than their friends who telework from home or work in the burbs.

So, at great expense, I secure conveniently placed carparks for my employees use.

And because I’ve done that, on top of the wages I can barely afford to pay, my business has to front up to government with a fringe benefit tax on behalf of my employees, on the value of the carpark I've provided them, and already paid for, once.

Mr Dunne calls this fair. But my business, already tough, just got harder. And I sit and wonder why he 'doesn't get it?'

...  I’ve promised myself to use seemly language on my blog – it’s just a personal principle - so I can’t tell you what I’d call it. Although fair certainly doesn't cut the red tape on this one, either.

And regarding the Christchurch CBD rebuild, well, if you were a business, here’s another nail in why you wouldn’t want to. Because if you want to stop something, tax it. Works every time. It's the mathematics of the real world.

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