Author: MIL-OSI Publisher

Source: NZ Music Month takes to the streets

“Budget 2025 launches Investment Boost, a major new tax incentive to encourage businesses to invest, grow the economy, and lift wages,” Finance Minister Nicola Willis says.

“Economic growth is how we raise living standards, create higher-paying jobs and fund the growing cost of the public services Kiwis depend on.

“To achieve that growth, New Zealand needs businesses to invest in productive assets – like machinery, tools, equipment, vehicles and technology. Investment drives productivity improvements, makes firms more competitive and supports employers to improve workers’ wages. 

“Investment Boost allows a business to immediately deduct 20 per cent of the cost of a new asset, on top of depreciation, meaning a much lower tax bill in the year of purchase.

“Cashflows are better, making more potential investments stack up financially.

“The Treasury and Inland Revenue estimate Investment Boost will improve economic growth, lifting New Zealand’s GDP by 1 per cent, wages by 1.5 per cent and our capital stock by 1.6 per cent over the next 20 years, with around half these gains expected in the first five years.

“Investment Boost starts today and applies to new assets purchased in New Zealand as well as new and used assets imported from overseas. It includes commercial buildings but excludes land, residential buildings, and assets already in use in New Zealand.

“There’s no cap on the value of eligible investments. All businesses, regardless of size, can benefit.

“Investment Boost delivers more bang for buck than a company tax cut because it only applies to new investments, not those made in the past.

“It is designed to encourage firms to make more growth-enhancing investments now and into the future. 

“In practice, the policy will reward businesses who make new investments by reducing their tax bills in the year they purchase new assets. For example, with Investment Boost, an advanced manufacturing firm that purchases a $200,000 environmental test chamber would reduce its tax bill by more than $10,000 in the year of purchase. 

“The policy is expected to cost an average of $1.7 billion per year in reduced revenue across the forecast period. 

“After many difficult years, New Zealand is once again on a steady economic growth path, thanks to lower inflation, lower interest rates, better-controlled government spending, and more business-friendly policies.

“Our Government knows businesses have been knocked around by challenging local and international economic conditions. This tax incentive shows that we are backing them to succeed. 

“Now is the right time to support New Zealand’s economic recovery by making it easier for businesses to invest, hire more workers, pay them better, and contribute more to our long-term prosperity. Investment Boost delivers the confidence injection business needs,” Ms Willis says.

Source: NZ Music Month takes to the streets

Budget 2025 secures New Zealand’s economic and fiscal recovery and advances reforms to make New Zealanders better off in future. 
“In recent years New Zealanders have battled a protracted period of high inflation, high interest rates and economic downturn. The cost of living has soared, and the government’s books have taken a hammering, with unsustainable spending increases fuelling high levels of debt. Global events have added uncertainty to the mix. 
“The coalition Government’s strong fiscal and economic management has ensured recovery is now underway. In this Budget, the Treasury is forecasting growth will accelerate over the next four years, bringing 240,000 additional jobs, rising incomes, stable inflation, lower interest rates, a return to balanced government books, and an end to rising debt. 
“New Zealanders are depending on this recovery, but we cannot take it for granted. Nor can we shirk responsibility for addressing the underlying issues our country faces. 
“Budget 2025 responds to New Zealand’s long-term challenges with initiatives to boost growth, investment and savings; targeted investments in the essential services and infrastructure New Zealanders rely on; and reforms to fix financial holes in the government’s books.” 
Budget 2025 achieves this by: 

Establishing the Investment Boost tax incentive to encourage businesses to invest, grow and lift wages. The policy allows for 20 per cent of the cost of new assets to be deducted immediately from taxable income (on top of normal depreciation). It is expected to lift levels of business investment, with longer-run benefits including increasing the level of GDP by 1 per cent, capital stock by 1.6 per cent and wages by 1.5 per cent over the next 20 years, with at least half those benefits occurring over the next five years.
Increasing the KiwiSaver balances of New Zealanders by phasing in an increase in default employer and employee contribution rates to 4 per cent; extending the scheme to 16- and 17- year-olds; and making the scheme more fiscally sustainable by halving and better targeting the government contribution.
Providing Cost of Living Relief by better targeting Working for Families support to deliver an average of $14 extra a fortnight to 142,000 low to middle income families; delivering rates rebates for up to 66,000 SuperGold cardholders; extending prescription periods to deliver savings to patients on long-term medications and new funding for community-based food banks.
Strengthening Health services through a $7 billion operating funding uplift over the forecast period, including for services provided by Health NZ, targeted funding to support better GP and after-hours care and funding for additional cancer treatments and other medicines. In addition, $1 billion in capital funding is provided for replacing and upgrading public health facilities including Nelson Hospital and the Wellington Emergency Department.
Strengthening Education provision with $1.5 billion over the forecast period to improve student achievement, including an historic investment in learning support with $646 million of initiatives to ensure earlier identification of and better help for children with additional physical, learning and behavioural needs and over $700 million to deliver new schools and classrooms.
Improving Law and Order through $1.1 billion additional investment over the forecast period to support frontline policing, initiatives to respond to child and youth offending, tackle organised crime, improve court timeliness and support stronger sentencing with funding for increased prison capacity, including the expansion of Christchurch Men’s Prison through a Public Private Partnership.
Building Defence Force and Foreign Affairs capability, with $1.9 billion total operating and $1.1 billion total capital investment that recognises the fast-changing geostrategic context and the critical role New Zealand plays in supporting peace and prosperity in the Pacific. A further $1.6 billion total capital is pre-committed against Budget 2026 for further strengthening our Defence Force.
A range of new Social Investments, including $760 million total operating funding uplift for Disability support services, $774 million to improve the redress system and strengthen the care system for abuse in state care, a new Social Investment Fund, measures to improve the integrity and fairness of the welfare system and the creation of a new flexible housing fund to deliver additional social and affordable housing places.
$6.8 billion of capital Infrastructure  projects, including funding for rail, roads, health and education infrastructure. 

“These high-impact investments have been made possible through the Government’s ongoing savings programme. The Budget redirects existing spending towards New Zealanders’ highest priorities, with $21.4 billion operating savings made across the forecast period from 116 initiatives. These savings make the new investments in this year’s Budget possible. Without these savings, our new initiatives would have required funding from extra taxes, or yet more borrowing, both of which would put New Zealand’s economic recovery at risk. 
“Significant Budget savings have resulted from fixing Labour’s flawed pay-equity regime and removing an assumption that the Government would fully-fund potential settlements involving non-Government employers. 
“Taken together, these changes have increased the funding available for Budget 2025 by $11 billion operating over the forecast period and an additional $1.8 billion allocated for capital investment. This funding has been redirected to support investments in frontline health, education and other government services. 
“The Government has kept funding in contingency to settle future pay equity claims that we anticipate will be raised by government employees. Other potential pay equity costs will be considered as part of the normal Budget process. 
“Future pay-equity settlements will only be awarded where pay discrepancies are proven to be the result of sex-based discrimination. 
“In addition to pay equity settlements, the Government will fund future pay rises for women-dominated public-sector workforces through the normal collective bargaining process. 
“Budget 2025 strikes a careful balance – making the investments our country needs now while driving long-term reforms to safeguard the economic recovery and growth New Zealanders depend on. It is a responsible Budget that secures New Zealand’s future.” 
 

Source: NZ Music Month takes to the streets

New Zealanders will soon be able to receive 12-month prescriptions for their medicines, delivering savings to patients on long-term medications, Health Minister Simeon Brown and Associate Health Minister David Seymour say.
“Currently, doctors and other prescribers can only prescribe most medicines for a maximum of three months at a time. Patients must then pay their GP for a follow-up appointment or to issue a repeat prescription every three months,” Mr Brown says.
“This creates unnecessary barriers for patients on stable, long-term medications like asthma inhalers, insulin for diabetes, and blood pressure tablets. It means added costs for patients and more paperwork for health professionals, taking time away from patients with more urgent or complex needs.
“From the first quarter of 2026, prescribers will be able to issue prescriptions for up to 12 months if it is clinically appropriate and safe to do so. While patients will still collect their medication from a pharmacy every three months, they will no longer need to return to their doctor for a new prescription each time.
“This change could save up to $105 a year in GP fees for patients who need to renew their prescriptions four times annually. It’s a win-win for patients and the health system – fewer avoidable hospitalisations, better health outcomes, and reduced long term costs.” 
Budget 2025 allocates $91 million over four years to support this change. The funding will cover the cost of additional medicines, as more are expected to be dispensed.
“This change will remove red tape to make it easier for New Zealanders to get timely access to medicines so that they can live longer, happier, healthier lives,” Mr Seymour says.  
“Requiring patients on stable, long-term medications to visit GPs four times a year to renew a prescription for 12 months only costs them money and reduces accessibility. A 12-month prescription in these cases is just common sense.  
“I’m pleased to see the Government’s responsiveness to the voices of patients and their families by expanding access to more medicines for more groups. This decision reflects our commitment to a more adaptable and patient-centered approach.”  
Mr Brown says this change will also help GPs and other health professionals better manage patients with long-term conditions.
“Instead of spending time on routine repeat prescriptions, they can focus more on supporting those with complex or deteriorating health needs,” Mr Brown says.
“It is a practical, patient-focused change that will make access to healthcare simpler, more affordable, and more efficient for New Zealanders.”

Source: NZ Music Month takes to the streets

The Government will back community-based food banks for a further year as New Zealand recovers from a cost-of-living crisis, Minister for Social Development and Employment Louise Upston says.
“The $15 million in support announced today will be managed by the Ministry of Social Development (MSD), the New Zealand Food Network and partner agencies – meaning help for people who continue to need it.
“This will support the work of the Food Network, regional food hubs and community food providers, as they jointly distribute more than 4.5 million meals a month.
“Existing funding for the Food Secure Communities Programme was a Covid response measure and never intended to be permanent. It would have expired at the end of June 2024, but we know demand remains high, mainly driven by the cost of living.
“That’s why continuing support for food security remains important, with the Treasury expecting the pace of economic recovery to be slower than previously forecast.
“Our $15 million investment in the community food sector for 2025/26 will support and maintain: 

national and regional food distribution infrastructure to distribute purchased and rescued bulk food to community providers at low or no cost and during emergencies and disruptive events ($7.9 million)
food security initiatives which increase community food resilience and self-sufficiency ($1 million)
food providers and hubs to purchase and/or distribute food through foodbanks and community centres to meet the increased demand for food support ($6 million)

“This investment in food security also complements other Government initiatives supporting families and children, such as FamilyBoost. It also aligns with Government targets to increase student attendance and achievement. Addressing food insecurity also contributes to wider priorities on health, employment, and tackling violence and crime.
“Because it’s also important for the Government to know whether social investment and community initiatives are working, this funding includes $100,000 for MSD to better understand the programme’s impact while wider decisions are made about the future of food security programmes,” Louise Upston says.
 

Source: NZ Music Month takes to the streets

Budget 2025 introduces a new housing investment approach that will deliver the right houses, in the right places, for the right people, Housing Minister Chris Bishop and Associate Housing Minister Tama Potaka say.
“This Government believes in social housing. New funding of $128 million over four years will deliver at least 550 more social homes in Auckland in the 2025/26 year. That’s on top of the 1,500 new social homes funded through Budget 2024, to be delivered from 1 July 2025. 
“More than 600 of the houses funded through Budget 2024 have been allocated already through government relationships with community housing providers. 
“We’re also making it easier for the community housing sector to plan and get on with the job of housing people in need. We’re committing $82 million total for Upfront Operating Supplement payments for community housing providers in certain circumstances when contracts for new social housing are agreed. This upfront funding will help get new social homes built faster.
“The Government is also establishing Crown lending facilities of up to a total of $150 million for the Community Housing Funding Agency, to help lower the cost of borrowing for community housing providers.
“Over the last year we have looked at the bigger picture of how we invest in social and affordable housing.
“At present the Government has a confusing and often duplicative tangle of housing funds, many of which are tightly limited in what they can fund. Successive governments have added new funds over time. The system is inflexible, with investment determined by programmes with available funding rather than what is needed in a region.
“To fix this, the Government is establishing a new contestable Flexible Fund, replacing previous housing programmes like the Affordable Housing Fund, the Progressive Home Ownership Fund, and remaining Whai Kāinga Whai Oranga funding.
“The fund consists of $41 million operating funding over four years and $250 million capital funding over the next ten years for additional houses from 1 July 2027. Subject to further design work on the fund, this will enable up to 650-900 social homes and affordable rentals.
“Our intention is that the new Flexible Fund will use a variety of providers to deliver different housing types, including social houses and affordable rentals built by community housing providers, Kāinga Ora and Māori providers. 
“The new Flexible Fund is a key part of a new housing investment approach that will better target new and existing government investment to focus on particular needs in particular regions and be more effective at delivering the right types of houses. It will give us a much more granular understanding of the types of housing required – and who is best placed to deliver them.”
Associate Housing Minister Tama Potaka says the new Flexible Fund will also provide for government-subsidised affordable rentals as a permanent part of the housing system. 
“Affordable rentals allow people to pay less than the market rent in a region. They are a missing link in the social housing system. There should be an intermediate option between traditional social housing, where people usually pay 25 per cent of their income, and market rentals.
“Māori housing providers have brilliantly demonstrated the benefits of these homes in places like Rotorua and Gisborne.
“We expect that credible Māori providers and community housing providers will be eligible for investment through the Flexible Fund, particularly given their recent success in delivering quality houses.”
Decisions about the design of affordable rentals, the parameters of the Flexible Fund and how the funding will be used will be made later in 2025.
The Budget also contains a range of savings initiatives to fund cost pressures in Vote Housing and Urban Development, including making the First Home Loan Scheme cost recoverable.”

Source: NZ Music Month takes to the streets

Budget 2025 changes Working for Families to better target help to low and middle-income families with children.
About 142,000 families will receive an average $14 a fortnight extra from Working for Families. The vast majority have an annual family income under $100,000.
“We want financial support to go to families that need it most. The changes in this Budget will help families with cost of living and support them to remain in work,” Social Development and Employment Minister Louise Upston says.
These changes are being delivered through changes to the abatement threshold. The abatement threshold is the income level at which Working for Families entitlements begin to reduce. 
“The current threshold has been unchanged since 2018, despite inflation and wage growth. This means the scheme has become less effective at supporting low and middle-income families,” Louise Upston says.
“Accordingly, the Government is lifting the Working for Families abatement threshold from $42,700 to $44,900 and raising the abatement rate from 27 per cent to 27.5 per cent. Families with incomes close to the new threshold will get greater additional payments – up to $23 a fortnight.
“The cost of the extra support will be met by income testing the first year of the Best Start tax credit in the same way the second and third years are, with payments starting to diminish above a family income of $79,000 and cutting off entirely when a family earns just over $97,000 a year.” 
Families of children born before 1 April 2026 won’t have their Best Start payments income tested and will continue to receive the maximum amount until their child turns one.
“We are also concerned that families are getting into Working for Families debt just because their incomes or family circumstances change unexpectedly during the year,” Revenue Minister Simon Watts says. 
“To address this, the Government is releasing a discussion document with proposals to make Working for Families payments more accurate, including using past income, over shorter periods, to calculate entitlements. We know that having debt with Inland Revenue can be distressing so we are interested in what people think of the proposals.”
The changes will take effect from 1 April 2026, following legislation to be introduced on Budget Day today.

Source: NZ Music Month takes to the streets

Parents rather than the state will be responsible for unemployed 18- and 19-year-olds who cannot support themselves under planned benefit changes announced in today’s Budget. 
“The purpose of the welfare system is to support those who need it the most,” Social Development and Employment Minister Louise Upston says. 
“Our Government is taking steps to make sure work or study is the focus for young people, rather than being on welfare. 
“With this announcement, we’re clearly saying that 18- and 19-year-olds who don’t study or work and can’t support themselves financially, should be supported by their parents or guardians, not by the taxpayer.
“That’s why from July 2027, eligibility for Jobseeker Support and the Emergency Benefit will be tightened for single unemployed 18- and 19-year-olds by introducing a parental assistance test. 
“Young people can’t expect to go automatically onto a benefit, and parents must be ready to help. This change strengthens financial incentives to enter employment, education or training. 
“Recent forecasts show that people under the age of 25 on Jobseeker Support will spend an average of 18 or more years on a benefit over their lifetimes – 49 per cent longer than in 2017. 
“This is a human tragedy. We need to focus on the potential of one of New Zealand’s most powerful assets – our young people, and that’s why we are taking action.
“Our Government has already introduced more early intervention for young beneficiaries through a new phone-based employment case management service. We’ve got 2,100 more places for young people to get community job coaching, more regular work seminars, and a traffic light system to help them stay on track with their obligations.
“Young people who do require support from the Ministry of Social Development will still be able to access it. For instance, in some cases 18- or 19-year-olds may not be able to rely on parental support. If they meet all other relevant eligibility criteria, they will be able to access some supports. 
“People aged under 20 who are married, in a civil union or a de facto relationship will not be subject to a parental assistance test. 
“This Government recognises that the welfare system should be available for those that need it. However, we aren’t willing to watch young people get stuck on the benefit.
“This change will contribute to the Government’s economic growth agenda, by ensuring New Zealand has a highly skilled workforce and maximises its human capital.
“Our Government does not accept that a life on welfare is as good as it gets for our young people. We expect that our young people will be in work or training,” Louise Upston says. 
 

Source: NZ Music Month takes to the streets

The Government is again delivering record investment in healthcare, providing New Zealanders with better health services and ensuring hospitals and healthcare facilities are fit for the future, Health Minister Simeon Brown says.
“Budget 2025 provides a $7 billion increase in Vote Health operating funding over the forecast period. This includes the $1.37 billion per annum increase to Health New Zealand’s baseline – bringing total health spending in 2025/26 to $32.7 billion,” Mr Brown says.
“Budget 2025 confirms our commitment from last year’s Budget of a record investment in health over three budgets. That funding is already delivering results – more elective surgeries, GP appointments, and other critical healthcare services New Zealanders rely on.
“Other new initiatives include $91 million to increase prescription lengths and $447 million to support increased access to primary care.
“Budget 2025 also invests over $1 billion in new capital to deliver modern, fit-for-purpose infrastructure that meets the health needs of New Zealand’s growing and ageing population.
“We’re also making real progress on our health targets. Emergency department wait times are coming down, cancer patients are being seen faster, and childhood immunisation rates are improving.
“This year’s Budget builds on that momentum, with targeted investments to strengthen frontline services and improve access to GP and specialist care across the country.”
For patients, this funding will support Health New Zealand to deliver its plan for increased care for patients and will include:  

21,000 additional planned care treatments (to an estimated 343,000 treatments)
31,000 additional cancer treatments to administer new funded medicines (to over 455,000 treatments)
22,000 additional people receiving inpatient care (to an estimated 984,000 people)
50,000 additional events in emergency departments (to a projected 1,411,000 events)
231,000 additional general practice encounters (to a projected 21,824,000 encounters)
119,000 additional bed nights in the residential aged care sector (to a projected 9,717,000 bed nights, excluding psychogeriatric bed nights). 

Specific Budget 2025 initiatives include: 

Increased access to urgent and after-hours care, helping to reduce pressure on emergency departments
Expanding the primary care workforce, including training more doctors and nurses locally
24/7 access to digital primary care for online medical consultations, making it easier for people to get advice and prescriptions from their own homes
Easier access to long-term prescriptions and broader prescribing rights across the health workforce
Streamlined transfers from hospital to aged care, helping free up inpatient hospital beds and improve continuity of care
Increased funding for the Health and Disability Commissioner to improve complaint resolution and care standards
Support for a new multi-agency response to mental health distress calls
Continued investment in hospital and facility upgrades across the country, ensuring clinical environments are safe, modern, and fit for purpose. 

“We are delivering on our promise to put patients first. This additional investment of 7.4 per cent in total funding represents an increase of 6.2 per cent per capita, which will make a real difference to people’s lives – ensuring timely, high-quality care for patients while supporting our frontline workforce who deliver that care every day.“Budget 2025 reflects our commitment that all New Zealanders – no matter where they live – deserve a health system they can rely on that is focused on delivering for them, the patient,” Mr Brown says.