Welcome to our coverage of todays budget 2025 – here we cover what’s in and what’s out! – you can check our on air coverage starting from 2pm with a live feed from Parliament and the directly after comes our live analysis with Jodi Ihaka in the studio and our correspondents live in Wellington, Claudette Hauiti:
This what we know so far:
Summary of current announcements
Coverage begins at 2pm on air 603AM, online at www.waateanews.com and on our Facebook Page
- Minister Willis says over $700m of pūtea has been allocated to Māori…….but the financial statements show there’s only $38m of new money the rest is reallocated Māori monies sent to the general pot for universal distribution
- pre-budget announcements targeted pūtea for Māori $1.5 million per annum of new baseline funding for Māori Wardens $75 million for Toi Tu Rawhiti development of 150 affordable rentals in Gisborne
- $14m including $1.5 for Wātene Māori; Māori Women’s Welfare League and Pasifika Wardens spread over 4 years
“Budget 2025 reduces investment in our youngest New Zealanders and fails to address the urgent needs of children and families in Aotearoa New Zealand”, says Chief Executive of the New Zealand Council of Christian Social Services (NZCCSS), Alicia Sudden.
“This is a mean and heartless Budget that cements in the pay equity betrayal. It exposes the Government’s naked theft of wages from thousands of underpaid women to pay for tax cuts for landlords,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. “This is the wage theft budget.”
Fiscal Strategy and Savings
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Operating Allowance Reduction: The annual operating allowance has been reduced from NZ$2.4 billion to NZ$1.3 billion, marking the smallest in a decade. Reuters
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Capital Investment Increase: Capital spending is set to rise to NZ$4 billion, focusing on infrastructure projects in health, education, defense, and transport. Reuters
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Pay Equity Adjustments: Changes to the pay equity regime are projected to save NZ$12.8 billion over the forecast period, redirecting funds to frontline services. NZ Herald+1SunLive+1
Key Investments
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Health: Over NZ$1 billion allocated for health infrastructure, including developments at Nelson Hospital and Wellington’s emergency department. 1News
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Education: Investments include NZ$646 million in learning support and NZ$700 million for new schools and classrooms. 1News
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Defense: An additional NZ$9 billion over four years to enhance military capabilities, aiming to double defense spending to 2% of GDP over the next eight years.
Economic and Social Initiatives
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Investment Boost Tax Incentive: Businesses can deduct 20% of the cost of new assets on top of depreciation, amounting to NZ$1.7 billion annually. 1News
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Social Investment Fund: A NZ$190 million fund to support 20 targeted initiatives aimed at improving outcomes for vulnerable populations.
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KiwiSaver Changes: Adjustments to contribution rates and government incentives are being implemented to enhance retirement savings.
Sector-Specific Highlights
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Film and Television: An additional NZ$577 million over four years for the International Screen Production Rebate scheme to attract international productions. Reuters
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Charter Schools: NZ$153 million allocated to convert 35 state schools into charter schools and establish 15 new ones between 2025 and 2026.
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Financial Literacy: Financial literacy will be introduced into the primary school curriculum from 2027 as part of social sciences education.
