Bupa Under Scrutiny For Tax Practices As Workers Face Cuts
E tū is calling for urgent reform and transparency in aged residential care funding, following the revelations that Bupa – the country's second-largest provider – has paid just $12 million in income tax over the past decade, despite reporting nearly $300 million in profits.
'We spend billions of dollars each year on aged residential care, but there is very little transparency about whether that money supports decent jobs for workers, and decent care for residents, or simply subsidises corporate profits,' says Edward Miller, researcher with the Centre for International Corporate Tax Accountability and Research (CICTAR).
'Our research suggests that over the last decade, Bupa earned $3.3 billion in revenue and $293 million in profit, but only paid a total of $12 million in income tax – an effective tax rate of just four percent.
'In addition, a major intercompany loan appears to have reduced their taxable income by $150 million over the last decade. That could have cost Aotearoa up to $27 million in lost tax revenue over that period.'
E tū National Secretary Rachel Mackintosh says the report reveals a disturbing pattern.
'At the same time as Bupa is sending tens of millions overseas in interest payments on questionable debts to other Bupa subsidiaries, they're pushing through dangerous new rosters that cut hours and destabilise care,' Rachel says.
'Care workers are rightly asking whether Bupa is putting tax planning ahead of providing safe, decent care for residents. In 2023, for instance, Bupa made $12 million in pre-tax profit but paid just $11,000 in corporate tax – that's about what a Level 4 care worker pays.'
Rachel says while more funding is urgently needed for the sector, companies must also be held to account.
'We need increased investment in aged care, but with it must come transparency. New Zealanders deserve to know their taxes are going to support quality care, not just boost overseas profits.
'It's time to put the wellbeing of our elderly and those who care for them at the centre of this system.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
13 minutes ago
- Scoop
Fire And Emergency New Zealand Offers Firefighters A 5.1 Percent Pay Increase
Fire and Emergency New Zealand and the New Zealand Professional Firefighters Union have been negotiating a collective employment agreement for career firefighters since 16 July 2024. Deputy Chief Executive Service Delivery Operations/Deputy National Commander Megan Stiffler says Fire and Emergency has offered the Union a 5.1 percent pay increase over the next three years, as well as increases to some allowances. "We consider the offer is fair, balances cost of living pressures being faced by individuals alongside fiscal pressures faced by Fire and Emergency and is consistent with the Government Workforce Policy Statement." Megan Stiffler says Fire and Emergency has invested significantly in its people and its resources for the safety of communities since it was established in 2017. "The previous collective employment agreement settlement in 2022 provided a cumulative wage increase of up to 24 percent over a three-year period for our career firefighters." "Fire and Emergency has also been investing in replacing our fleet, with 317 trucks replaced since 2017 and another 70 on order. We are currently spending over $20 million per year on replacement trucks. There is also a significant programme of station upgrades underway, as well as investment in training," she says. "In 2023/24 most career firefighters earned over $100,000 per year, including overtime and allowances. The turnover rate for our career firefighters was just 3.6 percent last year, and the average length of service was 17 years. We work constantly with our people to ensure we are an employer of choice." "Our firefighters are highly trained and deeply committed to serving their communities and we are investing in our people and our resources, to support them. They do an incredible job keeping New Zealanders safe."
Otago Daily Times
3 hours ago
- Otago Daily Times
Opinion: vocational pathway just as important
The return of local decision-making to Otago Polytechnic took a big step forward last week. Vocational Education Minister Penny Simmonds delivered her much anticipated dismantling of the failed Te Pukenga centralised model. While Otago has not quite made the grade as a fully autonomous entity just yet, it is to have its own board of local education and industry experts to guide course delivery in tune with Otago skills needs. Once back on financial solid ground, it will become fully autonomous. As a long-standing advocate for Telford, in Balclutha, New Zealand's only remaining residential agricultural training facility, I was delighted to hear Ms Simmonds confirm her commitment to its future. From New Zealand First's perspective, vocational education has long been marginalised as an educational pathway. The entire school system is geared towards an academic pathway, with university entrance the ultimate outcome incentivised. It is the metric schools measure and promote themselves with. This is despite only 30% of students going on to study at university. This is not to dismiss the importance of university education, of particular importance to Dunedin given the University of Otago is such a foundation stone of our city. These reforms are to acknowledge that for the majority of high school graduates, it is not a pathway they ultimately choose. It is critical they have a modern, fit-for-purpose and financially viable vocational training pathway to allow these students, and workers looking to retrain, to get into the trades and service industries. New Zealand needs builders, plumbers, nurses, chefs and electricians just as much as we need university-trained doctors and economists, for example. The list of skills deemed worthy of being prioritised through our immigration system is an indictment on our vocational training performance as a country — especially so at a time when 160,000 New Zealanders are on the jobseeker benefit. We are designing a polytechnic model that prioritises regionally relevant skills training and a pathway to jobs that are in demand. They will be codesigned alongside employers to make sure the qualifications are relevant and fit for purpose. New Zealand is relying on it.
1News
6 hours ago
- 1News
NZers are not getting a 'raw deal' on butter, says Nicola Willis
The Finance Minister does not believe New Zealanders are getting a "raw deal" on butter, but has accepted there is no getting away from how expensive it is right now. Nicola Willis met with Fonterra's chief executive Miles Hurrell at Parliament on Tuesday evening. While the two meet regularly, there was increased interest in the meeting due to the current price of butter. Willis had earlier said it was something she would discuss with Hurrell. Finance Minister Nicola Willis says the price of butter will be discussed at her meeting with the giant co-op. (Source: 1News) Characterising the meeting as "constructive and engaging," Willis said Hurrell was candid about the way butter was priced in New Zealand. ADVERTISEMENT Her summary of her meeting with Fonterra largely zeroed in on her drive to increase supermarket competition. The large proportion of what people pay for butter is dictated by global demand, which is something the government could not control. "Were that price to come down, you would expect that to be reflected in the prices that New Zealand shoppers pay," Willis said. Hurrell had told her that butter had once been the hardest product for Fonterra to sell globally, but the increasing demand was due to reporting on its health benefits. "It was once viewed as a bogeyman," she said. The meeting had reinforced Willis' interest in increasing supermarket competition to put downward pressure on the price of butter. "All roads lead back to supermarket competition. I continue to believe that is the most powerful lever that the government has on this issue. We will never be able to control global dairy prices. What we can influence is the amount of competition in New Zealand's grocery sector and we have a lot of work underway to address that." ADVERTISEMENT Fonterra had also observed the supermarket competition. Finance Minister Nicola Willis does not believe New Zealanders are getting a "raw deal" on butter. (Source: "Miles specifically conveyed that Fonterra operates in a number of markets around the world, most of which have a more competitive supermarket sector, and that it does feel different in New Zealand." She would leave it to supermarkets and Fonterra to argue who was charging what margin. "The sense that I got from my engagement with Miles is that it's a constant battle between them. Each party are probably going to point fingers at the other." Hurrell would not answer questions when RNZ approached him outside Parliament on Tuesday night, but a Fonterra spokesperson said the meeting was "constructive". Willis said she had encouraged Hurrell to front, in particular to explain what proportion of the margins go to Fonterra and what goes to supermarkets. ADVERTISEMENT Acknowledging that Fonterra's job was to get the best possible price for its shareholders, Willis also accepted New Zealanders saw the downsides of that when they were shopping. "I've been satisfied that I don't think consumers are getting a raw deal. I think that there is good work going on to ensure that there is pressure and competition from Fonterra to try and keep its prices low. But I get it. Butter is expensive right now. There's no getting away from that."
