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Research Results

More than half say they are worse off after major tax reform

21 Nov 10

More than half say they are worse off after major tax reform

Only 8.4% say they feel better off as a result of October’s major tax reforms.

 

Some 53.5% say they are worse off after tax cuts and rises in benefits and GST.

 

Some 35.6% say they are neither better nor worse off, according to a nationwide HorizonPoll survey of 1,558 people conducted between November 16 and 19.

 

Weighted to represent the New Zealand population, the maximum margin of error is +/- 2.5%.

 

Those saying they are worst affected are in lower income households, but even in households earning $200,000 plus more than half feel worse off, only a quarter better off.

 

More than 70 out of 100 households earning $20,000 a year or less (71.5%) feel worse off. Among households earning between $20,000 and $30,000 a year 60% worse off.

 

Among households earning between $100,001 and $150,000, 39.3% a year feel worse off (19.6% better off).  Some 53.2% of those in households with incomes $200,000 plus feel worse off (24.6% better off).

 

Some 5.5% of households earning $30,000 to $50,000 feel better off, 54.3% worse off.

 

Among middle income households earning $50,001 to $70,000 a year 11% feel better off, 45.9% worse off.

 

By age, 18 to 24 year-olds have the highest better-off result at 11.2%, followed by those aged 65-74 years (9.5%). Among 24 to 34 year-olds only 4.3% feel better off, the lowest score.

 

The tax reforms fail to leave the governing coalition parties’ voters feeling better off.

 

 While more voters for ACT say they feel better off (25.8%), 38.6% say the reforms have been neutral and 32.3% feel worse off.

 

Among National voters, 14.9% feel better off, 44.6% neutral and 37.3% worse off.

Some 46.1% of Maori Party voters feel worse off and 5.6% better off.

 

10.3% of United Future voters feel better off, 57.5% worse off.

 

Only 4.2% of Labour voters feel better off, 30.4% neither better nor worse and 62.9% worse off.

 

The reforms leave 7.2% of Green Party voters feeling better off, 26.6% neither better nor worse and 64.6% worse off.

 

Among smaller parties’ voters, 73.2% feel worse off.

 

By ethnic group, Indians are the most likely to feel worse off. 73.5% say the changes have adversely affected them.  Among Asians 46.1% feel worse off, Maori 43% and New Zealand Europeans 51%.

 

Question asked:

 

GST and tax reform

On October 1 this year the Government increased GST from 12.5% to 15%, and increased benefits and reduced personal income tax rates.

 

Overall, do you feel better or worse off as a result of the GST rise, benefit increases and tax cuts?

 

Much better off 1%

Better off 7.2%

Neither better nor worse off 35.8%

Worse off 35.4%

Much worse off 17.9%

Not sure 2.6%

 

RESULTS TABLES

 

HorizonPoll November 2010

Survey Results Table (Weighted)

GST AND TAX REFORM

On October 1 this year the Government increased GST from 12.5% to 15%, and increased benefits and reduced personal income tax rates.


Q13. Overall, do you feel better or worse off as a result of the GST rise, benefit increases and tax cuts?

Multichoice - Single Answer Only

A. Much better off
B. Better off
C. Neither better nor worse off
D. Worse off
E. Much worse off
F. Not sure

 

 

A

B

C

D

E

F

ALL

1543

1%

7.3%

35.6%

35.6%

17.9%

2.6%

 

             

AGE GROUP

             

18-24 years

10%

1%

10.1%

37%

23.3%

24.7%

3.9%

35-44 years

18%

0.8%

7.4%

34.9%

36.3%

18.8%

1.9%

45-54 years

21%

1.5%

5.8%

39.7%

36.3%

16%

0.8%

55-64 years

16%

1.5%

6.9%

36.3%

32.9%

19.9%

2.5%

65-74 years

12%

1.5%

8%

41.2%

33.7%

9.6%

6%

75 years or over

3%

1.5%

5.7%

33.7%

39.2%

12.4%

7.5%

25-34 years

17%

 

4.3%

30.4%

42.3%

20.9%

2.1%

Under 18 years

2%

 

30.1%

6.5%

53.2%

10.2%

 

 

             

HOUSEHOLD INCOME

             

Between $100,001 and $150,000 per year

8%

1.9%

17.7%

38.1%

31.5%

7.8%

2.4%

Between $150,001 and $200,000 per year

2%

9.2%

15.4%

22.3%

49.7%

3.5%

 

Between $20,001 and $30,000 per year

16%

0.6%

6.1%

30.3%

40.3%

19.8%

2.9%

Between $30,001 and $50,000 per year

20%

1.2%

4.3%

36.9%

33.2%

21.1%

3.3%

Between $70,001 and $100,000 per year

14%

0.5%

9.5%

40.8%

34.2%

13%

2.5%

Don't know/ prefer not to say

12%

1.3%

6.7%

39%

35.5%

12.7%

4.8%

More than $200,000 per year

1%

11.6%

3.2%

57.2%

27.9%

 

 

Between $50,001 and $70,000 per year

15%

 

9.1%

37.7%

34.3%

16.9%

2%

Less than $20,000 per year

11%

 

0.4%

27.2%

37.2%

34.3%

0.8%

 

             

PERSONAL INCOME

             

Between $100,001 and $150,000 per year

2%

10.8%

33.4%

15.8%

32.7%

1.9%

1.9%

Between $150,001 and $200,000 per year

0%

46.9%

6.2%

24.7%

22.1%

 

 

Between $20,001 and $30,000 per year

14%

1.7%

4.3%

33.6%

38.4%

19.4%

2.5%

Between $30,001 and $50,000 per year

21%

0.5%

9.7%

36.9%

34.7%

16.7%

1.5%

Between $50,001 and $70,000 per year

8%

0.3%

10.7%

44.6%

33.8%

9.2%

1.4%

Between $70,001 and $100,000 per year

5%

2%

12.2%

40.6%

38.4%

7.5%

0.3%

Don't know/ prefer not to say

10%

1.5%

3.5%

43%

32.1%

13.4%

6.5%

Less than $20,000 per year

39%

0.1%

5.5%

31.9%

36.3%

23.3%

2.9%

More than $200,000 per year

0%

 

 

100%

 

 

 

 

             

OCCUPATION

             

Business Manager/Executive

5%

6%

18.4%

32.7%

34.5%

7%

1.4%

Business Proprietor/Self-employed

5%

2%

3.5%

41.5%

43.8%

8.3%

1.1%

Don't know/prefer not to say

7%

0.7%

11.4%

25.8%

47.7%

11.8%

2.6%

Farm Owner/manager

0%

24.6%

7.1%

30.2%

38.1%

 

 

Home-maker (not otherwise employed)

7%

0.8%

3.9%

31.8%

37%

23.5%

3.1%

Professional/Senior Government Official

5%

3.4%

19.5%

34.5%

18%

19.8%

4.7%

Retired/Superannuitant

13%

0.7%

8.3%

34.5%

35.3%

13.3%

7.9%

Teacher/Nurse/Police or other trained service worker

9%

0.2%

4.5%

33.1%

46.9%

14.7%

0.6%

Technical/mechanical/Skilled Worker

6%

1.5%

7.8%

42.6%

37.9%

9%

1.3%

Clerical/Sales Employee

11%

 

11.4%

40.3%

35.7%

9.6%

3%

Labourer/Agricultural or Domestic Worker

4%

 

1.8%

49.4%

31.5%

17.3%

 

Student

8%

 

3.2%

24.9%

32.5%

38.8%

0.6%

Unemployed/Beneficiary

7%

 

1%

34.6%

28.9%

34.7%

0.9%

 

             

HOUSEHOLD TYPE

             

Couple only (no children/none at home)

31%

1.3%

8.3%

38.3%

35.2%

13.7%

3.3%

Flatting or boarding - not a family home

7%

1.5%

4.5%

40.3%

26.4%

19.2%

8.1%

Single person household

15%

1%

5.4%

34.6%

34%

23.1%

1.8%

Two parent family, one or two children at home

24%

1%

10.3%

33.2%

37.7%

16.4%

1.4%

Two parent family, three or more children at home

6%

2.3%

7.1%

40.4%

32.2%

17.5%

0.4%

One parent family, one or two children at home

6%

 

8.3%

27.2%

43.3%

20.3%

0.9%

Extended family

4%

 

 

33.3%

48.8%

13.2%

4.6%

One parent family, three or more children at home

2%

 

 

21.4%

27.8%

49.5%

1.2%

Prefer not to say

3%

 

 

40.6%

38.8%

16.4%

4.2%

 

             

ETHNIC GROUP MEMBER

             

Did not specify

5%

1%

10.5%

28.5%

23.1%

34.8%

2.1%

Maori

6%

1.4%

5.4%

46.3%

17.1%

25.9%

3.9%

NZ European/Pakeha

57%

1.2%

7.8%

37.6%

36.4%

14.6%

2.5%

NZ European/Pakeha,Maori

8%

1.2%

6.5%

30.9%

35.4%

26.1%

 

Other European (includes Australian, South African, British etc)

7%

1.6%

5%

40.4%

31.9%

17.4%

3.7%

Asian

4%

 

16.6%

35.3%

30%

16.1%

2%

Indian

3%

 

6.5%

12.9%

46.2%

27.5%

6.9%

NZ European/Pakeha,Other European (includes Australian, South African, British etc)

1%

 

20.3%

34.6%

38.4%

6.7%

 

NZ European/Pakeha,Pacific Islander

1%

 

4.1%

28.7%

50.7%

16.6%

 

Pacific Islander

4%

 

1%

30.6%

44.6%

23.7%

 

Asian,Other European (includes Australian, South African, British etc)

0%

 

 

100%

 

 

 

Middle Eastern/Arabic

0%

 

 

63.2%

 

20.9%

15.9%

NZ European/Pakeha,Maori,Pacific Islander

0%

 

 

57.5%

42.5%

 

 

NZ European/Pakeha,Middle Eastern/Arabic

0%

 

 

100%

 

 

 

Pacific Islander,Indian

0%

 

 

100%

 

 

 

Maori,Other European (includes Australian, South African, British etc)

0%

 

 

 

100%

 

 

Maori,Pacific Islander

0%

 

 

 

100%

 

 

NZ European/Pakeha,Asian

0%

 

 

 

42.2%

 

57.8%

NZ European/Pakeha,Indian

0%

 

 

 

100%

 

 

NZ European/Pakeha,Maori,Other European (includes Australian, South African, British etc)

1%

 

 

 

78.9%

21.1%

 

NZ European/Pakeha,Pacific Islander,Other European (includes Australian, South African, British etc)

1%

 

 

 

100%

 

 

Pacific Islander,Asian

0%

 

 

 

100%

 

 

Pacific Islander,Other European (includes Australian, South African, British etc)

0%

 

 

 

100%

 

 

Pacific Islander,Asian,Other European (includes Australian, South African, British etc),Middle Eastern/Arabic

0%

 

 

 

 

100%

 

 

             

PARTY VOTE 2008

             

ACT New Zealand

3%

5.3%

20.5%

38.6%

19.1%

13.2%

3.3%

Chose not to vote

17%

1.1%

3.7%

31.2%

37.4%

25.6%

1.1%

Don't know or can't remember

9%

0.5%

0.5%

35.1%

40.2%

21%

2.7%

Green Party

5%

1.1%

6.1%

26.6%

38.9%

25.7%

1.7%

Labour Party

25%

0.2%

4%

30.4%

41%

21.9%

2.8%

National Party

33%

1.5%

13.4%

44.6%

29.5%

7.8%

2.9%

Other party

1%

3.1%

7.2%

16.5%

54.3%

18.9%

 

Maori Party

2%

 

5.6%

36.3%

26.7%

19.4%

11.9%

New Zealand First Party

3%

 

2.4%

29.2%

38.6%

24.8%

4.9%

United Future

0%

 

10.3%

32.2%

39.6%

17.9%

 

Jim Anderton's Progressive Party

2%

 

 

31.4%

39%

29.6%