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NZ Herald
a day ago
- Business
- NZ Herald
New Zealand's largest taxpayers revealed: Banks dominate with $2.5b contribution
This survey identified New Zealand's largest taxpayers, 13 companies who each pay more than $100 million in annual income taxes to the Inland Revenue Department (IRD). These bakers' dozen of corporate behemoths are reported to pay a combined $3.8b cash in income taxes annually. By themselves, this handful of companies account for nearly a quarter of New Zealand's entire $16.9b corporate tax take, which in turn is the Government's third-biggest source of revenue behind personal income tax (PAYE) and sales tax (GST). These 13 companies are the ones with the most to gain if chatter from Wellington earlier in the year that the Government was mulling a cut to the corporate rate ever comes to fruition. A drop of the rate to 25% for instance, just three percentage points, would deliver $250m in boosted annual profits for the big four banks alone. This is because New Zealand's corporate tax base is not only top-heavy, it is also dominated by bankers with Australian accents. The first four places on the list – accounting for more than $2b in annual tax payments – are our big four Australian-owned banks. The remainder of the list is filled out by mostly NZX50 heavy-hitters: a mix of gentailers, construction giants and large technology operators. Most are household names. All will be well-known in the business community, and all report annual revenues of at least $2.8b. A number of other companies reported profits high enough to incur more than $100m in annual income tax expenses – Auckland Airport, Air New Zealand, Fisher & Paykel Healthcare, Xero, SkyCity, Spark and Pacific Aluminium – but tax timing issues or deductions, typically losses carried forward, suppressed the cash amounts they paid to Inland Revenue over the period and therefore they fell out of the top of this list. While headline numbers are of interest, insights can be found comparing these companies' effective tax rates (the proportion of profits reduced by a tax expense) and effective cash rates (the proportion of profits actually paid to the IRD). These should be contrasted with the statutory corporate tax rate of 28%. The big four banks' reported results are closely aligned with our corporate tax rate. Effective tax rates among the big four only vary by a maximum of 0.14 percentage points, while the cash tax rate only differs – generally in favour of the IRD – by at most two percentage points. This sector hasn't always been known as tax paragons, tax adviser Geof Nightingale says. 'If you went back 20 years, you'd find quite different results,' Nightingale says. Tax adviser Geof Nightingale says the Herald study of effective and cash tax rates paid by large corporates shows the banking sector in particularly has come a long way. Two decades ago, the IRD began a titanic campaign against the banking sector, arguing its structuring and chronically low effective and tax cash rates amounted to avoidance. On Christmas Eve, the big four settled, incurring a $2.2b tax bill and their reported results suggest lessons have been learned. 'That [court action] and just also a kind of a jawboning from successive Governments saying to the banks, guys, 'You pull your weight, or we're not going to allow you to operate here' has seen the banks come up to paying the statutory tax rate,' Nightingale says. And overall – with most companies paying close to the statutory rate – it is very positive, he says. 'What your table shows is that the New Zealand corporate tax base is relatively well enforced and complied with. So most of the corporates are there or thereabout at statutory rates. 'Some of them are higher and that's what I would have expected, and the ones that are materially lower, there is a good explanation for it,' Nightingale says. The most jarring figures from the list come from Fletcher Building, whose apparently punishing effective tax rate of 451% from the tail end of the survey period (concluding June 2024) came after delivering a significant and sustained series of setbacks and write-downs. These recent, and ongoing, losses are likely to see Fletchers disappear from this list for some time. Differences between reported tax expenses, and tax actually paid in cash, can be considerable. This is most obviously the case for the New Zealand Superannuation Fund, an $84b Government investment entity intended to front-load the looming cost of providing pension payments for an ageing population. It is a rarity amongst public entities in that it is subject to income tax. Over the two years surveyed, the NZ Super Fund booked just over a billion dollars a year in income tax expenses, but over the period reported received from the IRD – not paying to it – a net $73m. This striking variance is best explained by the NZ Super Fund's head of tax John Payne, but basically boils down to a misalignment of tax years and reporting dates. John Payne, the head of tax at the New Zealand Superannuation Fund. 'It's an issue of timing of when tax payments are made,' Payne says, with the final – and largest – payment for tax occurring in the months after accounts for the year are reported. 'The cashflow statement doesn't show we're paying $1.2 billion, but the 2024 accounts do show a tax provision on the balance sheet of $1.2 billion.' Payne is also the chair of the Corporate Taxpayers Group (CTG), a low-profile peak body for the top end of town whose 47 members include every company identified by the Herald as New Zealand's biggest taxpayers. 'We're a who's who of corporate New Zealand,' he says, figuring that more than half of the entire corporate tax base is represented by his members. Payne is keen to stress that the scale of his group provides some shield from it being dismissed as a lobbyist for lower taxes, and says he was as surprised as anyone that Willis floated a rate cut. 'Certainly, and currently, the group is very aware it's pretty tight fiscal conditions for Government at the moment. Part of our thought leadership mantra is 'what's good for NZ Inc will be good for our members'- ie we're keen on growing the pie and taking out compliance costs,' he says. According to Payne, New Zealand sits towards the top of the OECD in the size of its corporate tax take, helped less by a mid-table rate and more by a cleaner system that largely eschews deductions. While this survey focused on corporate income tax, it's worth noting that there is another small cluster of companies that are the big four's only real rivals when it comes to filling Government coffers. Collectively, the three largest tobacco companies – British American, Philip Morris and Imperial – only record an annual average of $20m in income tax payments over the period, but account for the vast bulk of tobacco excise tax payments to Government that total around $1.5b per year. While the largest operator in tobacco, British American, does not break out excise tax costs in its cost of sales, based on the reporting of its peers it is likely to – by itself – pay more than $800m annually in such taxes, comparable to that provided in income tax by leading contributor ANZ. The country's largest bank, ANZ, appears to also be the largest individual contributor to the IRD. Photo / Alex Burton New Zealand's largest taxpayers, ranked: 1. ANZ Pre-tax profit: $3072m Income tax expense: $860m (27.98% effective tax rate) Cash tax paid: $873m (28.4% effective cash rate) The largest bank in a country where banks rule the business roost, the only real rival to ANZ's position as New Zealand's largest taxpayer will be the odd years when the NZ Super Fund rides a boom. ANZ was also the only company to not specifically break out income tax payments in its cashflow statements. Bank staff directed the Herald to a 'Voluntary Tax Transparency' report published on the website of its Australian parent to find the relevant figures. In the six months since the survey period ended, ANZ has inched forward – reporting a cash net profit increase of 1% – and lucked out with economic hedges that boosted statutory profit by 21%. 2. BNZ Pre-tax profit: $2091m Income tax expense: $583m (27.86%) Cash tax paid: $628m (30.02%) The gap between second and third is wafer-thin, with ASB slightly ahead on pre-tax profits. BNZ secures silver based on a marginally higher level of payments to the IRD. Earlier this year, the BNZ reported steady but modest growth, with home lending up 3.4% and a 4.3% bump in net profits, in the six months to March. 3. ASB Pre-tax profit: $2097m Income tax expense: $590m (28.14%) Cash tax paid: $623m (29.69%) A tight podium tussle sees ASB settle at third with – as is common in the banking sector – its effective tax rate only a fraction of a per cent off the statutory corporate rate. In the six months since the survey period ended, ASB reported a 2% rise in net profits, ensuring it – and the entire sector – will remain the taxman's biggest counter-parties. 4. Westpac Pre-tax profit: $1694m Income tax expense: $475m (28.05%) Cash tax paid: $459m (27.1%) Another member of the Big Four rounds out the top four places on this list. Westpac may be the smallest of its Australian-owned banking contemporaries when it comes to taxable profits, but still reports levels of earnings – and cash paid to the IRD – that are at least twice as large as the non-banking also-rans that make up the best of the rest. Earlier this year, in a six-monthly report following on from the survey period, Westpac reported a 10% rise in net profits and a boost in net interest margin. According to recently-filed accounts for large corporates, Spark is the largest non-bank taxpayer in New Zealand. 5. Spark Pre-tax profit: $833m Income tax expense: $108m (12.91%) Cash tax paid: $190m (22.75%) Spark, the country's largest mobile provider, has had a rough recent six months – with net profits declining 78% – but this comes after it managed to report the lowest effective tax rate, just 13%, among the large taxpayers during the survey period. Nightingale, the tax expert, notes this divergence from the 28% company rate was because of the 2023 booking of capital from the sale of its cell towers to Connexa. As anyone following political debate in New Zealand will know, these gains aren't taxable, but this trick isn't easily repeatable unless Spark finds more family silver to sell. 6. Mainfreight Pre-tax profit: $491m Income tax expense: $174m (35.44%) Cash tax paid: $162m (32.89%) Approaching 50 years since Bruce Plested founded his company with just a single truck, Mainfreight is now New Zealand's largest logistics company and has been an NZX stalwart since listing in 1996. Booking more than $5b in annual revenues, the company is a genuine heavyweight but is having to weather global trade uncertainty triggered by the United States' infatuation with headline-grabbing tariffs. 7. Meridian Energy Pre-tax profit: $360m Income tax expense: $98m (27.22%) Cash tax paid: $157m (43.61%) The leading gentailer on this list – who, with the Big Four banks, make up a majority of New Zealand's top taxpayers – wears a relatively high cash tax rate, largely because of how differently the tax system and accounting reporting standard treat depreciation. 'In the test period, Meridian paid a much higher CTR [Cash Tax Rate] than ETR [Effective Tax Rate],' Nightingale says. 'This arises mainly because the tax depreciation expense is calculated on the historical costs of Meridian's large asset base, while the accounting depreciation expenses is [sic] calculated on the revalued value of the assets, so is a much higher amount – but not deductible for tax purposes.' Roading and construction giant Fulton Hogan has become one of New Zealand's most profitable companies. 8. Fulton Hogan Pre-tax profit: $514m Income tax expense: $149m (29.02%) Cash tax paid: $140m (27.26%) Construction giant Fulton Hogan has grown steadily over the past decade – and enormously since it was founded in the Great Depression to build roads. It is now booking the better part of a billion dollars in profits on more than $6b in annual revenues. Based in Christchurch, with operations across Australasia, Fulton Hogan's accounts cleave closely to the 28% corporate tax rate, with little variation requiring explanation. 9. Ebos Group Pre-tax profit: $408m Income tax expense: $119m (29.10%) Cash tax paid: $134m (32.8%) A homegrown success story, Ebos was founded in Christchurch just over a century ago and gradually refined its operation to focus on healthcare, and in recent times has expanded to include pet care. Now a truly Australasian operation and listed on the ASX, its accounts are reported in Australian dollars and have been converted here into local currency. The company lists New Zealand's statutory rate in its accounts as a basis for reporting tax, but does not break down how much each tax authority – Australia's ATO or New Zealand's IRD – receives, so its position on this list is likely inflated. 10. Mercury Energy Pre-tax profit: $285m Income tax expense: $84m (29.47%) Cash tax paid: $114m (40%) Another gentailer, another apparently high cash tax rate explained by differing treatment of depreciation by tax and accounting regimes. In the six months since the survey period, Mercury reported a turn in fortunes – reporting a $67m loss for the six months to December 2024 – largely explained as a non-cash shift in the value of electricity derivatives. 11. Kiwibank Pre-tax profit: $260m Income tax expense: $71m (29.47%) Cash tax paid: $105m (40.27%) While a relative runt compared to the Big Four, Kiwibank has grown to become a major contributor to Inland Revenue and – depending on how the tricky political and fiscal questions around how to provide it more capital can be answered – has potential to grow further. In the six months since the survey period, to December 2024, Kiwibank grew its lending and deposits by 6%. Fletcher Building was once one of New Zealand's largest taxpayers, but has since run into a series of significant losses. Photo / Getty Images 12. Fletcher Building Pre-tax profit: $17m Income tax expense: $72m (420.59%) Cash tax paid: $101m (605.88%) Fletcher Building is not long for this list. Its fortunes abruptly started to turn during the survey period, and by June 2024 the previous year's $235m profit had flipped into a $227m loss. This provided minuscule net income over the period, dwarfed by its tax bill, which saw its cash tax rate balloon to more than 600%. If there are any positives for Fletchers at this point – and the negatives, including being sued by SkyCity over the Sisyphean International Convention Centre, have continued to pile up – it's that these losses, and those expected to land in coming results, can provide some measure of relief in future through use as carried-forward tax losses. It may be some years before this construction giant needs to trouble Inland Revenue. 13. Contact Energy Pre-tax profit: $258m Income tax expense: $77m (29.71%) Cash tax paid: $101m (39.22%) The last company to squeak over the $100m annual tax bar, Contact is another gentailer and faces a similar plus-sized cash tax rate because of how tax law and accounting practice treats depreciation differently. Matt Nippert is an Auckland-based investigations reporter covering white-collar and transnational crimes and the intersection of politics and business. He has won more than a dozen awards for his journalism – including twice being named Reporter of the Year – and joined the Herald in 2014 after having spent the decade prior reporting from business newspapers and national magazines.
Scoop
25-06-2025
- Health
- Scoop
Life X DNA™ Methylation Testing Now Available Across Australia And New Zealand
Life X DNA™, an Australian-owned provider of advanced genetic analysis, offers comprehensive DNA methylation testing services throughout Australia and New Zealand. These tests are designed for individuals seeking evidence-based insights into how their genetic makeup may influence health outcomes including cardiovascular function, detoxification, and mental clarity. The Gary Brecka test has contributed to increased public awareness of methylation, with a focus on key genes such as MTHFR. Life X DNA™ builds on this model by analysing more than 25 methylation-specific genes and an additional 300 genes that may play a role in related biological processes. The methodology combines next-generation sequencing with AI-driven interpretation to deliver personalised reports. DNA methylation tests examine chemical modifications on DNA that regulate gene expression without altering the genetic code. Life X DNA™'s testing kits are used at home, requiring only a cheek swab. Results are returned securely and include tailored supplement suggestions and insights linked to fatigue, mood, inflammation, and other wellness factors. Services are available in locations across both countries, including Perth, Sydney, Melbourne, Brisbane, and Auckland. The company adheres to privacy and data protection standards in accordance with Australian and New Zealand regulations. To learn more about methylation pathways, testing methodology, or to order a test kit, visit the Life X DNA™ website.
Techday NZ
24-06-2025
- Business
- Techday NZ
Wild Tech hires Andrew Kirk to lead enterprise cloud growth
Wild Tech has appointed Andrew Kirk as Senior Business Development Manager to drive the company's expansion in enterprise-grade managed services and digital transformation partnerships. Kirk brings extensive experience from previous senior roles at Telstra and IBM, and comprehensive familiarity with Amazon, Microsoft and Google Cloud platforms. Wild Tech aims to leverage Kirk's expertise to assist organisations seeking to modernise operations and build robust, cloud-first environments. Dan Whittle, General Manager – Managed Services at Wild Tech, stated, "Andrew's background working with Tier 1 enterprises makes him an exceptional fit for our next phase of growth. He has walked in the shoes of large, complex organisations and knows what it takes to implement scalable, compliant solutions that deliver real outcomes. His insight will be pivotal as we help clients transition from project-based deployments to ongoing service-led transformation." During his tenure at Telstra, Kirk held responsibility for the profit and loss in Cloud Services and led the introduction of Microsoft, Amazon, and Cisco cloud offerings across Australia and the broader APAC region. Early in his career, he was involved in the development of managed desktop services at Advantra, a joint venture between IBM, Lend Lease, and Telstra. More recently, Kirk played a role in establishing Searce's Australian operations, with a focus on Google Cloud and AWS solutions for the retail and mining sectors. In joining Wild Tech, Kirk steps into a role centred on expanding the company's influence across the enterprise and upper mid-market sector, concentrating on government, financial services, and retail. He will facilitate the alignment of long-term managed services with cloud, AI, and data solutions. "The appetite for transformation is strong—but the real challenge is productivity," Kirk said. "Wild Tech gets this. They're not just delivering tech projects, they're embedding long-term capability and service models that evolve with the client and drive the bottom line. That's exactly where I want to be." Kirk's recruitment supports Wild Tech's approach of linking technology delivery with operational excellence through a managed services approach tailored to enterprise requirements. Wild Tech states that its strategy for transformation is rooted in a comprehensive understanding of specific industry demands. The company asserts the importance of listening to clients to remain ahead of evolving requirements, and of taking into account how end-to-end business processes and organisational maturity interact with each technology platform's capability. The company continues to position itself as an Australian-owned and operated entity serving clients across APAC, with a focus on building the next generation of digital operating models through partnerships and established market platforms. Follow us on: Share on:
New Paper
21-06-2025
- Sport
- New Paper
Shock wins rock Royal Ascot G1's
ASCOT Cercene and Time For Sandals brought smiles to the faces of bookmakers on the fourth day of Royal Ascot on June 20, springing huge shocks in the two Group 1 races. Cercene was at 33-1 ($160 on the Singapore tote) the longest price winner ever in the £725,750 (S$1.26 million) Coronation Stakes (1,600m). The Australian-owned filly by Australia fought back under Gary Carroll to beat French favourite Zarigana (Mickael Barzalona). The win gave Irish trainer Joe Murphy, who had only had one previous runner at the meeting, his first Group 1 hurrah and easily his most prestigious win, and it comes on arguably the biggest stage. "This is 50 years of work, that's what it is, of love and care, and all for the owners we have, all our people, it's just a whole group of people together," said Murphy, 70, who has been training since 1977. "This is heaven on Earth." For Carroll, it was his third Royal Ascot winner but also his first ever Group 1 winner anywhere, and due reward for flying back to Berkshire after riding in Ireland on Thursday. "Hugely good horses are very hard to come by and sometimes only one comes along in a lifetime and I guess mine has," he said. Harry Eustace has got a real taste now for Group 1 races at Royal Ascot. After breaking his duck with Docklands in the opener - the Queen Anne Stakes (1,600m) on Tuesday - he added a second in the £725,750 Commonwealth Cup (1,200m) with Time For Sandals, a shock 25-1 winner ($144). Before her stunning win, Time For Sandals, a filly by Sands Of Mali, had one debut win at Kempton and four placings in five starts. "I don't know, it has not landed yet," said Eustace. "You have to be very careful with Ascot. If you get your hopes up, it can bite you back." For his father James, who Harry took over from, it was "magic". "It is so wonderful," said Eustace senior, who also enjoyed success at Royal Ascot, and whose younger son David is having a great start to his Hong Kong training career. "We tried to get Harry to go to university, we succeeded initially and he went to Edinburgh. "He had two good years and a lot of fun before he dropped out and then took off for Australia and the racing bug bit." For jockey Richard Kingscote, it was a seventh Royal Ascot winner, but first at Group 1 level, ending a run of 67 defeats at the meeting. "I've had some nice horses but this will do the world of good," he said. "I'm delighted to ride a good winner for Harry, he's a gentleman, it's a happy yard." Godolphin's Charlie Appleby was looking to end his three-year losing run, but hot favourite Shadow of Light never featured. AFP
Courier-Mail
20-06-2025
- Courier-Mail
Review: APT Solara, a river ship that stands out from the crowd
Don't miss out on the headlines from Lifestyle. Followed categories will be added to My News. To be or not to be a river ship – that is the question. When Australian-owned travel company APT approached the ambitious build of its new twin ships the Solara and Ostara, the brief was to create something dramatically different and see Europe through an Australian's eyes. Designed for the continent's busiest route from Amsterdam to Budapest, the luxurious Solara certainly stands out from the crowd. Despite having to adhere to the Danube's strict ship dimensions – there are 68 locks to navigate along the Rhine-Main-Danube route – the Solara offers surprising variety, and is contemporary and stylish with subtle nautical touches, including a chic French-navy exterior. X SUBSCRIBER ONLY Set the scene Checking into the airy atrium is a dreamy experience. High ceilings and a skylight open up the all-white space. There is a marble water station, a circular marble table and a tiled floor centrepiece in the dimensions of a compass. A dramatic macramé-like hanging rope sculpture descends from the ceiling into the softly curved stairwell, and the walls showcase original landscapes by artist Greg Wood and pieces curated by Melbourne gallery Otomys. The design was conceived by renowned Melbourne firm Hecker Guthrie (their first project on a ship), and influenced by APT's co-owners and siblings Lou Tandy and Rob McGeary. The designer furniture is whimsical and elegant but comfortable – think Gervasoni and Casini – and it has instant wow factor. If money was no object, this is how I'd love my home to look. We took a canal tour through Amsterdam. The itinerary While the Solara's 15-day itinerary will traverse the Netherlands, Austria, Slovakia and Hungary, I'm only on board for four nights for the christening and 'shakedown' cruise. This is a test run of sorts, and we embark at Rotterdam under the Erasmus Bridge before sailing past green pastures and fields of wild yellow canola flowers to Kinderdijk to tour the idyllic working windmills (dating back to the 16th century). We dock overnight at quaint Dordrecht (one of the oldest cities in Holland), visit Lisse to catch the vivid annual spring tulip festival Keukenhof, and take a canal tour through Amsterdam, which is celebrating 750 years. Although the friendly crew is busily readying the final touches to the ship, and pumping out countless espressos from the shiny new La Marzocco coffee machine in The Salon, the whole thing feels flawless. With Solara's capacity for 154 guests (and 60 crew), no cabin feels like you are missing out. Picture: Supplied. The cabins There are three categories of suites: the plush Owner's Suites, the Balcony Suites and the wood-panelled Twin Window Suites, and each has a colour scheme inspired by the seasons. Thick carpets range from sage green for spring to dusky pink for autumn. Original prints of signature European shore excursions by Australian photographer Nick Wilkins (available to buy) adorn the walls and lend an antipodean lens. The bathrooms have an abundance of storage, enormous shower heads, floor-to-ceiling tiling and marble sink tops. Toiletries by sustainable Amsterdam brand Marie-Stella-Maris were sourced by Tandy herself. With Solara's capacity for 154 guests (and 60 crew), no cabin feels like you are missing out. Solara has seven bars and eateries, each of which feels like a top-notch restaurant or wine bar. Picture: Supplied. Food and drink Solara has seven bars and eateries, each of which feels like a top-notch restaurant or wine bar. Catering to Australian travellers who have curious palates and want variety and quality, APT engaged hospitality guru Monique Lane of Fellow Hospitality (collaborating with chef Stephen Seckold of House Made Hospitality). From the fare at Bistro Saison, to the degustation paired with top-notch wine in the Owner's Cellar, and the laid-back eats at Annie's Table (named for the owners' mother), the offerings are impressive. The Grüner Bar & Dining, which rises on hydraulics so it elevates above other ships in dock, is a surprising hit, with dishes such as pretzels with whipped ricotta and moreish focaccia with butter that melts in your mouth. All bread and pastries are baked on board daily, and the delicious ice-cream and gelato are handmade. It has a circular conversation pit around solar lanterns to resemble a campfire, a nod to APT's outback touring heritage. Picture: Supplied. The extras Along with a jewel-coloured spa/salon, gym, and daily shore excursions that are included, e-bikes for guests who want to explore independently are provided. The roof has a small circular heated pool and two levels for guests to enjoy, and the Daystar Deck is a standout. It has a circular conversation pit around solar lanterns to resemble a campfire, a nod to APT's outback touring heritage. A marble cooktop space functions as an outdoor bar and barbecue, lending an Australian touch. The Grüner Bar & Dining has a great menu and sitting in a vibing wine bar while enjoying the view is a highlight. Picture: Supplied. What's hot The Grüner Bar & Dining has a great menu (the fish finger sambo is the hot ticket) and sitting in a vibing wine bar while enjoying the view is a highlight. What's not The square pillows on my bed were uncomfortable, although I learned later they were delivered by mistake and had been replaced before the first guests arrived. Checking into the airy atrium is a dreamy experience. Picture: Supplied. The verdict - 10/10 While I didn't sail the full itinerary, it's impossible to fault Solara. It's the most stylish river ship I've set foot on – the combination of Australian design, food and thoughtful inclusions is impeccable. The writer was a guest of APT Luxury Travel. Its 15-day Magnificent Europe cruise on Solara and Ostara, sailing Budapest to Amsterdam, starts at around $8495 twin share. Originally published as Review: APT Solara stands out from the crowd
