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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.

Source: NZ Music Month takes to the streets

The coalition Government is taking action on New Zealand’s declining natural gas reserves and has set aside a tagged contingency of $200 million over four years for co‑investment in new gas fields, Resources Minister Shane Jones says.
The structure of investments is still being worked through, but this signals a willingness, subject to Cabinet consideration, for the Crown to take a commercial stake of up to 10-15 per cent in new gas field developments that feed the domestic market to address sovereign risk.
“Natural gas will continue to be critical in delivering secure and affordable energy for New Zealanders for at least the next 20 years. We are already feeling the pain of constrained supply,” Mr Jones says.
“We are focused on growing the New Zealand economy, creating jobs and increasing prosperity and resilience. The Government is not prepared to sit on the sidelines and watch our industrial and manufacturing dwindle because of energy security concerns.
“Developing a new offshore gas field from exploration to production can carry a billion-dollar price tag and projects of this scale are likely to need offshore investment. We have demonstrated potential for significant gas development and while investors are interested, we need to show their commitment will not be a wasted exercise.
Talk is cheap but having skin in the game as a cornerstone investor in production demonstrates our own commitment to meeting our future gas needs. We are looking to take a stake in the development of the next Pohokura, Kupe, Mangahewa or Turangi to accelerate the investment needed to support our energy system.
“If we really want to address the current reality that we rely on imported coal, not domestic gas, to get through winter we must be prepared to stand alongside our petroleum sector as a co-investor. I say to my colleagues across the political spectrum, for the sake of energy affordability and security, be pragmatic about the role of natural gas, now and in the coming decades.”

Source: NZ Music Month takes to the streets

New funding will give older people greater access to aged residential care and longer care outside of hospitals, Associate Health Minister Casey Costello announced today.
“We want to ensure older New Zealanders can get the treatment and care they need in the best possible place. They should not be in hospital simply because they are frail and there are limited options for their care,” Ms Costello says.
“This investment of $24 million over four years will help people, who don’t need continued hospital treatment, to move to other care places in the community, including aged residential care.”
This timely care transfer initiative was developed with the aged care sector in 2023 but had time-limited funding that ends next month. 
“This investment means current delays in discharging older people from hospital will be reduced and hospital beds will be freed up for those requiring treatment,” Ms Costello says. “It will benefit anyone needing to access hospital and specialist services.
“The new funding will enable better rehabilitation and recovery in the community – for example, providing support for older people with exceptional needs, such as bariatric care, and the extra care required for new residents with complex needs,” Ms Costello says.
“I’ve seen first-hand how Aged Care residences can provide this level of recuperative care. They are currently funded to provide these ‘hospital’ rooms, and this extra funding will support access to this care and for the transfer process to occur safely and faster.
“We are working on large-scale and long-term improvements to the aged care system, but this initiative delivers some immediate support and helps us achieve national health targets.”

Source: NZ Music Month takes to the streets

Diversity and choice in New Zealand’s schooling system will be supported by increasing funding for independent (private) school subsidies, Associate Education Minister David Seymour says.
Budget 2025 will invest $15.7 million over four years to increase the subsidy available for independent schools. This increases the yearly funding for independent schools by 11 percent, from $41.6 million to $46.2 million.
“Independent schools are an important part of New Zealand’s education landscape, offering diversity and choice to parents. If parents want to send their children to independent schools, they should be able to,” Mr Seymour says. 
“Often parents are making big sacrifices because they would prefer to send their child to an independent school. They pay just as much tax as anyone else, yet the money that comes back for their kids’ education has effectively been getting smaller over the last 15 years. 
“In 2010 the Government said that it was appropriate to fund the independent school sector $41.6 million per year to divide between schools based on their roll size. 15 years later, that amount is still the same. In 2010, there were around 27,600 students enrolled in independent schools. This grew to over 33,000 in 2024.
“Inflation and costs for schools have increased, and independent school enrolments have grown. This means schools receive funding that is worth significantly less than they need. For example, independent schools pay more in GST than they receive in funding.  
“Alongside an increase to total funding, I am making changes so that funding for independent school subsidies will automatically be considered annually to accommodate roll growth. This will mean independent school funding increases will work the same way as any other school.
“Independent schools are a crucial part of the education system. The sector has been seeking changes to ensure they can continue to support students. This funding addresses key issues they have raised and gives independent schools support that is long overdue.” 

Source: NZ Music Month takes to the streets

Initiatives to help serious and persistent young offenders turn their lives around, and improvements to facilities for them, have been given a significant financial boost in Budget 2025. 
Building on the successes that have already led to a 13 per cent reduction in young people with serious and persistent offending behaviour (a key Government target), more than $103 million is being invested over four years in upgrading facilities and funding ways to address recidivism amongst young people.
“This investment will have a real impact on these young people and their whānau. It will also ensure our communities are safer, both immediately and in the future”, Minister for Children Karen Chhour says.
“This Government’s efforts to keep the public safe and reform young offenders is already bearing fruit. The Budget ensures we can continue this important work.”
The funded initiatives over four years include: 

$22 million for repairs and upgrades to Oranga Tamariki residences
$16 million to implement the new legislative regime for Young Serious Offenders, as proposed by the Oranga Tamariki (Responding to Serious Youth Offending) Amendment Bill
$33 million in safety and quality improvements to the facilities at youth justice residences
$33 million for the operation of military style academies and transitional support for young serious offenders. 

“Sometimes all it takes to improve the lives of an entire whānau is supporting one young person to make better choices.
“We continue to want better for, and from, these young people. This is not just an investment in facilities, it is an investment in them,” Mrs Chhour says.

Source: NZ Music Month takes to the streets

New investment in prison capacity and frontline staff will help reduce reoffending and keep the public safe, Corrections Minister Mark Mitchell says. 
“Our Government has restored proper consequences for crime. Because of that, there has been an increase in the prison population and fewer victims of crime.
“Budget 2025 invests more than $472 million over four years to ensure Corrections can continue to safely and securely manage the growing prison population. This includes funding for 580 new frontline staff, including 368 Corrections Officers. This is additional to the 685 new frontline staff funded through last year’s Budget.
“Corrections is ready to recruit these staff through an excellent recruitment campaign that has driven more than 110,000 applications since being launched in February 2024,” Mr Mitchell says. 
“We’re also investing in safe, fit for purpose prisons including redeveloping Christchurch Men’s Prison.
“Funding through Budget 2025 will help deliver 240 new high security beds at Christchurch Men’s Prison, along with a new Health Centre and Intervention and Support Unit containing 52 beds. 
“Phase 1 of the redevelopment will be designed, built, financed, and maintained for 25 years under a public private partnership. Corrections will retain responsibility for operations and custodial management of the facility.
“The new Intervention and Support Unit will provide dedicated specialist mental health support to prisoners who are at risk of harming themselves or others. This unit will be safer for staff and help prisoners with their mental health needs, preparing them to successfully take part in rehabilitation programmes.
“Our investment will ensure Corrections can meet other cost pressures due to the increase in prisoners and inflation.
“We’re investing in the frontline because we are serious about bringing back law and order and creating a safer New Zealand.”

Source: NZ Music Month takes to the streets

The Government is overhauling the way emergency services respond to 111 calls from people experiencing mental distress, Minister for Mental Health Matt Doocey says.
Budget 2025 invests $28 million over four years to fund the transition from a Police-led response to a mental health response to 111 mental distress calls.
The Budget also invests $50 million in improving the safety, privacy and dignity of mentally distressed people at mental health facilities.
“New Zealand’s current response to mental distress crisis calls is not fit-for-purpose. Transitioning from a Police-led response to a mental health response is the right thing to do,” Mr Doocey says.
The multi-agency response will involve 10 new co-response teams and a significant boost to the capacity of mental health telehealth services.
“Advocates, families, Police and mental health and addiction workers have repeatedly told me that having a uniformed Police officer turn up at times of mental health need can be disheartening and distressing.
“Police do a great job in our communities, but they are not mental health professionals. Police will always attend when there is a threat to life or safety, but this initiative will free Police up to do with core Policing.
“We know that co-response teams work. An evaluated trial saw fewer people being taken straight to a police station or emergency department. Instead, some had their issues instantly addressed, saying this was far less stressful and frightening than being transferred directly to hospital.
“The package includes increased funding for psychology internships, stage one psychiatry registrars and peer training. Money is also set aside for security for up to 12 smaller emergency departments that require security and support.”
Mr Doocey said the investment in lifting standards at care facilities was part of the Government’s response to safety recommendations by the Royal Commission of Inquiry into Abuse in Care.
“Keeping vulnerable people safe in the care of mental health services is an absolute bottom line for this Government,” he says. “We must ensure mental health facilities are safe and fit-for-purpose.
“This investment will cover in-depth assessment, safety improvements and upgrades.
It is expected to reduce the number of incidents and deaths in state care, and to improve working conditions for mental health staff who do an excellent job in often challenging situations.
“As New Zealand’s first Minister for Mental Health, I’ve heard too many stories from families whose loved ones died while in the care of mental health services. It’s heartbreaking, and we have to do better.”
The Budget will also bolster safeguards and oversight of compulsory mental health and addiction care.
“More than $9 million will go towards stronger protections for people receiving compulsory assessment and treatment and to improve complaints and investigation processes for people under compulsory care.
“These measures will improve the experience of state care for people with high and complex mental health, addiction and intellectual disability needs,” Mr Doocey says. 

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Nelson and other communities will benefit from a billion-dollar upgrade and expansion of hospitals across the country, Health Minister Simeon Brown says.“Budget 2025 funds a major redevelopment of Nelson Hospital. This will deliver a new inpatient building with more beds to meet population growth. The hospital’s two main buildings will be refurbished, and essential services will be upgraded. The Budget package also provides funding for:  

Construction of a new emergency department at Wellington Regional Hospital
The National Remediation Programme and small-scale infrastructure projects
Increasing interim inpatient bed capacity across New Zealand
Critical Auckland hospital infrastructure
Palmerston North Hospital remediation

“Nelson’s new 128-bed inpatient building – 41 more beds than current capacity – is expected to be built by 2029, two years earlier than planned. The hospital’s two main buildings will be refurbished and seismically strengthened, and a new Energy Centre will house critical infrastructure.“The $73 million design and enabling works for the new hospital are already well underway, and the $11 million emergency department expansion is expected to be completed by early 2026,” Mr Brown says. “Wellington Regional Hospital’s emergency department has long been inadequate to meet demand. The infrastructure boost will support construction of a new emergency department and specialist treatment spaces, refurbishment of the Old Children’s Hospital, expansion of the Intensive Care Unit, and fit-out of refurbished floors in the Clinical Services Block.“Providing more hospital beds quickly is also a priority. New funding will deliver at least three modular, transportable 32-bed inpatient units that can be moved where needed to support ongoing care while major infrastructure projects are underway. “Budget 2025 also funds small-scale support for urgent infrastructure issues at hospitals nationwide.“Fixing critical systems such as electrical, heating and hot water at Auckland City Hospital and Greenlane Critical Centre is a key priority. Patients care is being delayed due to outdated infrastructure which is failing. “Patients and staff in Palmerston North will also benefit from major electrical, heating, and fire protection improvements.”Mr Brown says the Government is determined to reverse decades of under-investment in the health system.“We are making the long-overdue investments needed to modernise our hospitals and strengthen our health system.“Modern reliable infrastructure will help deliver more for patients, reduce waiting lists, and ensure Kiwis can get the timely and quality healthcare they expect and deserve.“Today’s announcement is in addition to the $6.39 billion of infrastructure investment already underway and will support Health New Zealand to deliver the modern reliable health infrastructure Kiwis rely upon. It’s about delivering for New Zealanders now, and creating a system that will serve future generations,” Mr Brown says.

Source: NZ Music Month takes to the streets

More than 7,000 disabled New Zealanders will receive improved residential care, thanks to a $240 million four-year funding boost in today’s Budget. 
This is on top of more than $1 billion already funded annually for Disability Support Services. It means 89 residential providers across the country, and the people they care for, are better supported.
Disability Issues Minister Louise Upston says today’s announcement reinforces the Government’s commitment to stabilise the disability support system so it’s more consistent, transparent, sustainable and fair.
“As part of Budget 2025, the Government will increase Disability Support Services (DSS) funding for residential care by $60 million each year over the next four years, starting from 1 July 2025,” Louise Upston says. 
“DSS provides essential services and supports to more than 52,000 disabled people, including about 7,200 people in residential care facilities. 
“About half the DSS operating budget is allocated to residential care. It’s vitally important public money going to providers ultimately benefits the disabled people it’s intended for.
“Previously, funding for carers was unpredictable, subject to change or interruption, and varied across regions. The new funding will remove that uncertainty.
“These are very significant sums. Government contracts with providers must be robust, fair, and sustainable right across New Zealand.
“A new residential care pricing model will give providers, disabled people, and their families more confidence in the funding available. 
“It will allow for more flexibility and means that from 1 July, we are beginning to lift the funding constraints we had to implement last year. 
“Last year’s independent review was vitally important in responding to serious concerns about the state of disability support services. It found that the cost of residential care services was growing, without the settings in place to manage current or future needs. 
“Compounding those problems, the system DSS uses to pay residential providers hadn’t been significantly updated since 2016, leading to thousands of one-off, inconsistent rates.
“This new funding model sets a nationally consistent approach while also recognising regional variations in costs such as housing prices.
“Importantly, it also enables DSS to forecast expenditure, which will support the Government to make informed future budget decisions.
“My absolute priority is to ensure continuity of care to disabled people, and to support providers to transition to this new model,” Louise Upston says.
 

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The Government will boost its investment in chasing tax evaders, Revenue Minister Simon Watts says. 
“Hard-working Kiwis who pay their taxes are being ripped off by tax cheats who deliberately evade their obligations,” he says.
“New Zealand’s tax debt rose to $8.5 billion by the end of 2024. At a time when the Government is carefully managing every dollar to fund the essential frontline services Kiwis rely on, it’s essential we crack down on those who are not paying their share of tax.
“Every dollar we recover is another dollar we can devote to funding schools, hospitals, and law and order. Investment in tax compliance delivers real results for Kiwis.”
Budget 2025 provides new funding of $35 million a year for Inland Revenue to carry out tax compliance and collection activities. It also continues funding of $27 million a year provided in Budget 2022 that was due to cease in June 2025.
“We are already seeing returns from the compliance funding in Budget 2024. This increased investment will accelerate that,” Mr Watts says.
“In the year to March 2025, Inland Revenue collected almost $3 billion of overdue debt and is on track to collect more than $4 billion by 30 June. 
“The return on investment from compliance activities is increasing. The Budget’s compliance investment has an expected return of four dollars for every dollar spent in 2025/26, rising to eight dollars per dollar spent in 2026/27 and beyond. 
“We want to know that the funds we allocate are a prudent use of taxpayer dollars. That’s why a small portion of the funding will be used to develop internal capability to assess the indirect effects of audit activity, based on international best practice,” Mr Watts says.