|
| |
The Government has released their Budget for 2025.
Before today’s release from Finance Minister Nicola Willis, $18.7m per year had already been pledged towards tax changes aiming to encourage foreign investment in infrastructure. Plus, in capital expenditure, $604.6m was announced as going towards KiwiRail over the next four years, to rebuild and upgrade parts of the national and metro rail networks.
BIF NZ has summarised the key points from within the budget for the following sectors: Building, Construction, & Infrastructure Agriculture & Horticulture Energy Finance & Financial Services Health Transport
|
|
|
|
|
|
|
|
|
|
|
| | | Overall, this year sees an operating allowance of $1.3b per annum, down from the $3.2b per annum in the 2024 budget, and the lowest operating allowance in a decade.
Budget 2025 also provides $6.8 billion of new capital investment, within a net capital allowance of $4.0 billion.
The Treasury’s Budget forecasts show growth picking up with 240,000 new jobs being created and wages growing faster than inflation. |
|
|
|
|
|
|
|
|
|
|
|
| |
| |
| | | Building, Construction, & Infrastructure |
| Major investments in new and upgraded hospitals, mental health facilities, school buildings, rail and roads across the country are being funded in this budget.
Among key infrastructure investments are: $1 billion to upgrade and expand hospitals across the country $712 million capital and $234 million operating for new classrooms and school property maintenance $464 million capital and $141 million operating for rail maintenance $219 million in additional operating funding to complete recovery works on local roads that were damaged in the 2023 North Island weather events
|
|
|
|
|
|
|
|
|
|
|
| | Agriculture & Horticulture |
| The new Investment Boost tax incentive encourages business to invest in productive assets. Within agriculture and horticulture, these productive assets entails the likes of machinery, tools, and equipment. With Investment Boost, businesses (including farms and orchards) will be able to deduct 20 per cent of a new asset’s value from that year’s taxable income, on top of normal depreciation.
The government has also pledged to accelerating reforms within science, innovation, and technology, as well as supporting the replacement of the Resource Management Act.
|
|
|
|
|
|
|
|
|
|
|
| | | The Government is setting aside $200m for would-be gas investors to co-invest in new gas fields. Resources Minister Shane Jones said the contingency fund, over four years, signalled a willingness for the Crown to take a commercial stake of 10% to 15% in new gas field developments for the domestic gas market.
There are no changes to the Winter Energy Payments.
|
|
|
|
|
|
|
|
|
|
|
| Finance & Financial Services |
| The amount the government adds to KiwiSaver accounts is being halved to 25c for every dollar that savers deposit, to a maximum $261 a year. Additionally, the minimum contribution will go up from the current 3 percent of wages to 4 percent in two steps over the next three years.
From July, people earning more than $180,000 a year will receive no government Kiwisaver contribution, but 16 and 17-year-olds will start getting government contributions.
Requirements for employers to match their deposits will kick in next year. |
|
|
|
|
|
|
|
|
|
|
| | | As well as a $447m boost for primary, urgent, and after-hours care, Government has announced a move to allow 12-month prescriptions from June. Increased funding for the Health and Disability Commissioner has also been outlined.
$1b is being invested to upgrade and expand hospitals across the country, including the Nelson Hospital Redevelopment and Wellington Regional Hospital Emergency Department refurbishment, as part of the Government’s commitment to ensuring all New Zealanders can access high quality, modern healthcare. Plus, $50m is set aside for upgrades to mental health facilities to provide safer, more therapeutic care settings for patients.
Health Minister Simeon Brown said the government's "record investment" in health was already delivering results, with more elective surgeries, GP appointments, and other critical healthcare services available.
|
|
|
|
|
|
|
|
|
|
|
| | | Train commuters and businesses moving goods around the country will see more reliable rail services, thanks to the Government's investment of $604.6 million for rail upgrades and renewals.
|
| | To view the full budget, visit the Treasury website here. |
|
|
|
|
|
|
|
|
|
|
| | BIF NZ: Thoughts on Budget 2025 |
|
|
|
|
|
|
|
|
|
|
| The big winners today are in health, education, law and order, and defence.
Business owners, now being able to deduct an additional 20 percent of a new asset’s value, should also stand to benefit from today’s announcements.
The announcements of changes to international tax rules to encourage investment in infrastructure is a win for the building in construction industry. The flow-on effect of the boosting to hospital, classrooms, and rail networks also comes as a bonus to our industry.
Julien Leys, Chief Executive of BIF NZ, says that overall, this is a positive budget for the building and construction sector, signalling a positive change. |
| | | | BIF NZ cares about our members and value their opinions. Feel free to give us your feedback on Budget 2025 with the above button. You do not have to identify yourself. |
| | | |
|
|
|
| |
|
