Finance Minister Nicola Willis today delivered the coalition government’s first Budget since coming to power last year, including its highly anticipated tax cuts.
Here are some of the main things to emerge.
The Finance Minister has set out $1.47 billion to pay for those tax cuts and rebates over four years. (Source: 1News)
- Income tax thresholds will increase from July 31 for people earning over $14,000 per annum, with the Government saying it is fully funded from savings and revenue initiatives.
- According to Willis, average income households will get tax relief of up to $102 a fortnight, with eligible families receiving up to $150 per fortnight from the previously announced FamilyBoost childcare payment.
ADVERTISEMENT
- Households with children will benefit on average by $78 a fortnight, and working age New Zealanders will benefit on average by $32 a fortnight.
- The independent earner tax credit of up to $20 a fortnight extended to those earning between $24k-$48k to now reach those on $24k-$70k.
- In-work tax credit increased by up to $50 a fortnight per family.
- First year “fees-free” replaced by final year “fees-free” for tertiary students – with the additional savings helping fund tax cuts.
- The $5 prescription co-payment reinstated for those aged over 14, with savings going to help fund the ongoing provision of essential medicines.
- $1.1b over five years to address demand and cost pressures on support services funded by Whaikaha – Ministry of Disabled People. This includes previously announced commitments of around $400m for 2023/24 and 2024/25.
- $1.2b over three years for regional infrastructure investment (both new and existing), including an initial $200m for flood resilience infrastructure.
ADVERTISEMENT
- Nearly $50m over three years for Te Matatini, starting in 2025/26.
- Fully fund the completion of the Auckland rail network rebuild – costing nearly $160m over two years.
- The economic downturn has been deeper and more persistent than previously expected, the Government said – but Treasury is forecasting the economy will pick up later this year. Inflation is forecast to return to the target 1-3% later this year.
- Budget 2024 operating allowance lowered to $3.2b, future operating allowances lowered to $2.4b.
SHARE ME