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Tax Cuts
Workers earning more than $14,000 will receive tax cuts ranging from $4 to $40 every two weeks, starting from July 31. This is part of the $3.7 billion tax cuts promised by the National party during their election campaign.
Other Tax Assistance
The Working for Families tax credit will increase, benefiting 160,000 low and middle-income families with up to $50 every two weeks. Additionally, the income limit for the Independent Earner Tax Credit will rise from $48,000 to $70,000, making 420,000 more people eligible.
Health
Over the next four years, $8.15 billion will be allocated to health, primarily to cover cost pressures. This includes $3.4 billion for hospital and specialty services and $2.12 billion for primary care and public health. The budget will also fund security staff in emergency departments and extend the Breast Screening program to individuals aged 70-74. However, funding for new cancer treatments, which was promised by the National party, is still in progress.
Education
The education sector will receive $3 billion, which includes $1.5 billion for new schools and classrooms, $67 million for structured literacy support, and $477 million for Healthy School Lunches.
Police
The police department will get $651 million over four years. This includes $226 million to hire an additional 500 police officers by the end of 2025, funds for new cars and equipment, and $242 million for potential police pay increases.
Budget Cuts
Nearly $6 billion has been cut from spending on back office staff and government programs. $3.7 billion of this will be used to fund the tax cuts.
Budget Spending
The new spending allowance is $3.2 billion. Finance Minister Nicola Willis has set a strict allowance of $2.4 billion for the next three budgets.
Economic Outlook
The Treasury predicts inflation will fall below 3% by the end of the year. The government’s books are expected to show a small surplus by 2027/2028.
Disabilities
An additional $1.1 billion will be allocated over five years to meet the demands of the Ministry of Disabled People, following budget shortfalls in recent years.
Māori Development and Te Matatini
Despite cuts to the Ministry of Māori Development, the budget has allocated long-term funding of $48.7 million to the kapa haka festival, Te Matatini.
