The minister said the advice related to a “private matter” and he had confidence in the former head of the Dairy and Business Owners Group, who was appointed to lead the advisory group.
Kaushal said he had no idea what it could be about, but correspondence obtained by RNZ showed there were problems about tax payments on his invoices last year.
The advisory group started operating in July last year and RNZ has previously reported that Kaushal invoiced for $238,625 in its first 12 months, at a daily rate of $920.
The group is behind Government policy work in areas such as changing trespass laws and introducing powers of citizen’s arrest, and it recently advised the Government about a controversial proposal that could allow shopkeepers to defend themselves with pepper spray.
It is expected to run for two years and its $1.8 million annual budget is paid for from the proceeds of crime fund.
Officials stay mum on advice
RNZ learned about the existence of advice concerning Kaushal, and asked the ministry – which provides resourcing and administrative support for the group – if it had provided Goldsmith or other ministers with advice about concerns with Kaushal.
The ministry confirmed there was a document that “falls within scope” of that request, and which was sent to Goldsmith, but it declined to release it or any details about it, including its title, citing legal privilege.
Goldsmith said Kaushal still had his confidence as the group’s chairman, but did not say what the advice was about.
“I received a piece of advice in relation to a separate private matter,” he said.
Kaushal said he was not aware of any advice about him from officials to the minister, but would seek clarity from the minister.
Tax problems flagged
One possibility for what the advice concerned was revealed in correspondence obtained by RNZ.
In November last year, an official emailed Kaushal, saying that because a form was not submitted before invoices were paid the ministry had not deducted withholding tax of $15,711.
“We have two options to correct the error,” wrote the official, whose name was redacted. “You can either refund the amount to the ministry that will need to be paid as [withholding tax] to the IRD and we can do that on your behalf, or you will have to report your income to the IRD at your tax assessment and do it yourself.”
Kaushal responded, saying he would organise the repayment to Inland Revenue through his accountant.
RNZ asked Kaushal if the tax was repaid, but he did not answer the question directly.
He said the ministry deducted payments from contractor invoices and if there were outstanding matters at the end of the tax year, they would be reconciled.
Instead, he said there should be discussions about combating retail crime, which cost New Zealand $2.7 billion a year.
“The things that we should be picking up on is how do we fix this crime? How do we make New Zealanders safer?”
Three contracts top $1000 a day
According to figures supplied to RNZ, seven staff support Kaushal and other members of the advisory group.
These include three principal policy advisers. One position earns $1261 a day for a contract ending in February 2026, another earns $1126 a day on a contract finishing next March, and the third is on $1036 a day on a contract ending in September 2026.
A social media adviser gets $104 an hour, but works part-time for about a day a week. That contract ended on Friday.
An administrator and secretariat support position gets $61 an hour for a contract finishing in May and a policy adviser for data analytics is on $57 an hour for a contract ending this month.
The figures for a policy manager seconded to the ministry were withheld on privacy grounds.
The ministry said contracts had ended for two strategic advisers previously working for the group.
Totals for what each position has claimed weren’t immediately available, but RNZ has requested them under the Official Information Act.
Important work requires best people – chairman
Kaushal said the group, and its staff, were behind important proposals to the minister about changing laws and policies. That involved legal advice and research.
“The laws are not written at home. It involves the professionals. The professionals need to be the leaders in their fields and that’s how the legislative changes happen, so we are bringing the reforms.
“We have already delivered three that the Government has accepted and we’ve delivered two more.”
The group had received positive feedback about its work and was travelling throughout New Zealand to meet with interested parties, he said.
Goldsmith said as yet no decisions had been made about the “self-defence aides, including pepper spray”.
“The MAG has been extremely busy in the last 12 months generating detailed policy suggestions, including new citizen’s arrest powers, a shoplifting infringement regime, strengthening trespass laws.
“They are helping restore law and order to New Zealand.”
The ministry and the minister’s office have refused to release advice and recommendations from the group in the past three months, including about trespass and “personal safety aides”.
The group rents a central Auckland office space for $100,000 a year.
-RNZ