In-Touch with Keystone : Special NZ Budget edition
Welcome to the special NZ Budget edition of In-Touch
The New Zealand Government's 2025 Budget, released by Finance Minister Nicola Willis last week, emphasises fiscal restraint amidst global economic challenges. The operating allowance has been reduced to NZ$1.3 billion, the lowest in a decade, aiming to curb borrowing and manage debt levels.
Key Measures:
Tax Compliance Boost: An additional NZ$35 million annually is allocated to Inland Revenue to enhance tax compliance and collection efforts, with an expected return of NZ$4 to NZ$8 for every dollar spent.
Investment Boost: An NZ$2.9 billion package has been introduced to drive business growth and support economic recovery. This includes accelerated depreciation for new plants and equipment (allowing businesses to immediately deduct 20 per cent of the cost of a new asset on top of depreciation), a fast-tracked consenting process for significant projects, and targeted tax relief to encourage private sector investment.
Business and Innovation Support: NZ$75 million is set aside for tax changes to attract foreign investment and support startups. Additionally, NZ$577 million is allocated to bolster the film and television industry, aiming to stimulate economic growth.
Infrastructure Investments: Significant funding is directed towards upgrading hospitals (NZ$1 billion), rail networks (NZ$605 million), and schools (over NZ$700 million), reflecting a commitment to enhancing public services.
Social Support Adjustments: Changes include means-testing the Best Start payments, affecting families with incomes above NZ$79,000, and modifications to KiwiSaver contributions, impacting retirement savings.
Education Funding: The budget introduces subsidies for private schools, aiming to provide more choices in the education sector.
While the budget focuses on prudent spending and targeted investments, it has sparked discussions on its potential impact on various sectors and households.
If you'd like to find out in more detail how the budget could affect you and your family, these articles are a good source of information:
Thanks for reading!
Thanks for reading this issue of In-Touch, and I wish you all the very best for the coming months. If you have any questions about something you've read or you'd like some advice on personal insurance, feel free to contact Keystone using the details below.