There's a suggestion consumer spending is recovering, but essential costs are leaving less for the fun stuff.

Kiwibank research reveals more than 71% of card transactions in August was on credit cards – the highest share since records began in 2002.

A decade ago, credit cards made up less than half of card spending.

Independent economist Cameron Bagrie told Ryan Bridge power bills and rates are eating into disposable income.

He says there's a structural shift underway, with more money going towards essential costs and less into the retail sector.

LISTEN ABOVE

There's a suggestion consumer spending is recovering, but essential costs are leaving less for the fun stuff.
Kiwibank research reveals more than 71% of card transactions in August was on credit cards&nbsp;– the highest share since records began in 2002.
A decade ago, credit cards made up less than half of card spending.
Independent economist Cameron Bagrie told Ryan Bridge power bills and rates are eating into disposable income.
He says there's a structural shift underway, with more money going towards essential costs and less into the retail sector.
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

Early Edition with Ryan Bridge

Cameron Bagrie: Independent economist on Kiwis relying more on credit cards

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/edcef370-edae-423d-84c6-b4cc0132af9e/transcript

A tax expert believes Labour's changed stance on interest deductibility makes complete sense. 

Labour's confirmed it won't change the current Government's rules allowing landlords to deduct 100% of interest in tax returns.  

It had previously criticised the policy as a tax cut for landlords, but Chris Hipkins believes their proposed Capital Gains Tax will address the issue. 

Deloitte Tax Partner Robin Walker told Ryan Bridge changing the rules would just be deferring when interest deductions get made. 

She says logically what would happen if deductions were denied is revenue from a capital gains tax would go much further down from what's forecast. 

LISTEN ABOVE 

A tax expert believes Labour's changed stance on interest deductibility makes complete sense.&nbsp;
Labour's confirmed it won't change the current Government's rules allowing landlords to deduct 100% of interest in tax returns. &nbsp;
It had previously criticised the policy as a tax cut for landlords, but Chris Hipkins believes their proposed Capital Gains Tax will address the issue.&nbsp;
Deloitte Tax Partner Robin Walker told Ryan Bridge changing the rules would just be deferring when interest deductions get made.&nbsp;
She says logically what would happen if deductions were denied is revenue from a capital gains tax would go much further down from what's forecast.&nbsp;
LISTEN ABOVE&nbsp;

Robyn Walker: Deloitte Tax Partner on Labour deciding not to change the rules about landlord interest deductibility

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/1fe8b016-0f71-4df6-8e65-b4cc0189486b/transcript

A student leader believes universities will hit a wall when it comes to funding without the Fees Free scheme.  

Tertiary Education Minister Penny Simmonds says despite supporting more than 300,000 students from 2018-2025, covering more than $2 billion in fees, it didn't meaningfully lift participation or provide a good return.  

But Victoria University of Wellington Students Association president Aidan Donoghue told Ryan Bridge universities will have to change tack without the scheme. 

He says they will have to ask for more government funding or require more from students. 

Donoghue says fees have already increased 20% in three years. 

LISTEN ABOVE 

A student leader believes universities will hit a wall when it comes to funding without the Fees Free scheme. &nbsp;
Tertiary Education Minister Penny Simmonds says despite supporting more than 300,000 students from 2018-2025, covering more than $2 billion in fees, it didn't meaningfully lift participation or provide a good return. &nbsp;
But Victoria University of Wellington Students Association president Aidan Donoghue told Ryan Bridge universities will have to change tack without the scheme.&nbsp;
He says they will have to ask for more government funding or require more from students.&nbsp;
Donoghue says fees have already increased 20% in three years.&nbsp;
LISTEN ABOVE&nbsp;

Aidan Donoghue: Victoria University Student Association President on the Fees Free scheme and the impact of ending it

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/a93393b3-07bc-437c-977d-b4cc0188525c/transcript

Labour has finally seen the light on interest deductibility. 

That's where a landlord, like any other legitimate business in New Zealand, is able to deduct the expense of its capital borrowing, i.e. a mortgage, against taxable income. 

After expenses, what's left over is taxed. 

This is a genuine surprise to me. The word I'd been getting from some Labour MPs, and the industry, was that they would allow a 50% deduction rather than the current 100%. 

Of course, the deduction has always made sense and arguments against made little. 

"Housing shouldn't be a business because it's essential" has always been a bogus line. Food, electricity, and water are also essential. They're all free and able to deduct interest on their borrowing to own and build supermarkets, wind turbines, and treatment plants – whether publicly or privately owned. 

There are two reasons for this: 

Labour's capital gains tax revenue would have been hit by landlords claiming the deductions at point of sale, leaving a hole in their free GP budget. 

It's also a play for the centre. They're dropping in the polls – the nine new taxes adverts are, I think, largely to blame. 

Continuing landlord tax cuts (as they like to call them) is a play from the same political handbag as National's supermarket break-up. 

Neither party's MPs like the move. They're Captain's calls. They're centre plays. But they don't, in their hearts, these MPs, like backing them. 

On latest polling the legacy parties are scrapping for less than 60% of the vote, their lowest collective share on record. 

National's trying to out-Labour Labour, and Labour's trying to out-National National. 

The risk for both is that it only angers their base, who run screaming into the arms of Chlöe or David. 

Labour has finally seen the light on interest deductibility.&nbsp;
That's where a landlord, like any other legitimate business in New Zealand, is able to deduct the expense of its capital borrowing, i.e. a mortgage, against taxable income.&nbsp;
After expenses, what's left over is taxed.&nbsp;
This is a genuine surprise to me. The word I'd been getting from some Labour MPs, and the industry, was that they would allow a 50% deduction rather than the current 100%.&nbsp;
Of course, the deduction has always made sense and arguments against made little.&nbsp;
"Housing shouldn't be a business because it's essential" has always been a bogus line. Food, electricity, and water are also essential. They're all free and able to deduct interest on their borrowing to own and build supermarkets, wind turbines, and treatment plants – whether publicly or privately owned.&nbsp;
There are two reasons for this:&nbsp;
Labour's capital gains tax revenue would have been hit by landlords claiming the deductions at point of sale, leaving a hole in their free GP budget.&nbsp;
It's also a play for the centre. They're dropping in the polls – the nine new taxes adverts are, I think, largely to blame.&nbsp;
Continuing landlord tax cuts (as they like to call them) is a play from the same political handbag as National's supermarket break-up.&nbsp;
Neither party's MPs like the move. They're Captain's calls. They're centre plays. But they don't, in their hearts, these MPs, like backing them.&nbsp;
On latest polling the legacy parties are scrapping for less than 60% of the vote, their lowest collective share on record.&nbsp;
National's trying to out-Labour Labour, and Labour's trying to out-National National.&nbsp;
The risk for both is that it only angers their base, who run screaming into the arms of Chlöe or David.&nbsp;

Ryan Bridge: It's obvious National and Labour are fighting for centre votes

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/5ec3cdd6-0934-4501-9f64-b4cc012ebed9/transcript

Cameron Bagrie: Independent economist on Kiwis relying more on credit cards

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