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Where does your tax money go?

A cartoon adventure through 40 years of New Zealand tax policy β€” meet the doctors, teachers, landlords and tycoons, watch the coins flow, and see how each government changed the plumbing.

πŸ‘‡ Tap an era to start. Watch the pipes change.

🎬 Meet the cast

Every NZ tax dollar starts in someone's pocket and ends up paying for someone else's MRI scan, kid's classroom or pension. Here's who's in the show:

πŸ‘¨β€βš•οΈThe DoctorEarns $200k. Top bracket. PAYE.
πŸ‘©β€πŸ«The TeacherEarns $70k. Middle bracket.
πŸ›’The ShopperPays GST on every flat white.
🏒The CompanyPays 28% on profits.
🏰Mansion Mike4 rental properties. Negatively geared.
πŸ€‘The 311NZ's wealthiest families. Real effective rate: 8.9%.

🎯 How to read the diagram

  1. GREEN coins flow IN to the IRD from workers, shoppers and companies.
  2. PURPLE coins flow OUT to schools, hospitals, super and welfare.
  3. ORANGE coins skip the IRD entirely β€” that's the capital gains loophole.
  4. The thickness of each pipe = how much money flows through it.
  5. Click an era below and watch the pipes morph.
πŸ’‘ Best on a desktop β€” the diagram is big. On a phone, swipe the diagram sideways to pan across it.
WHERE MONEY COMES FROM THE IRD WHERE IT GOES
PAYE / GST / Corporate tax flowing IN Government spending flowing OUT πŸ’Έ Tax-free capital gains (the LOOPHOLE)

πŸ’₯ The single most shocking chart in NZ tax policy

In 2023 the IRD ran the first real study of how much tax the 311 wealthiest NZ families actually pay. They make most of their income from untaxed capital gains β€” which is why the line on the right is so small.

Source: IRD High-Wealth Research Project 2023.

πŸŽ›οΈ Sandbox β€” build your own tax system

Slide the levers. Watch the pipes update live. (This overrides the selected era β€” click an era again to reset.)

🦹 How the rich actually dodge tax in NZ

🏰

No CGT

NZ is one of the only developed countries with no comprehensive capital gains tax. Buy a house for $500k, sell for $2M β€” keep it all (outside the bright-line window).

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Family trusts

Park income at the trust rate (used to be 33%, now 39%). Splitting income to lower-bracket beneficiaries still legal.

🏒

Company-rate arbitrage

Route income through a 28% company instead of paying 39% personally. Draw it down later as dividends or loans.

πŸ“‰

Negative gearing

Borrow to buy rentals, claim the interest as a deduction against other income. (Removed by Labour 2021, restored by National 2025.)

🏝️

The 311 effect

Only 7% of the top 311 families' income comes from wages. The other 93% lives in capital structures the IRD struggles to even see.

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The "look-through" company

The LTC regime replaced the abolished LAQC. Losses still flow to shareholders β€” only rental-loss ring-fencing slowed it down.