Budget 2025 - Economic Growth
How we’re growing the economy to help Kiwis get ahead
- Stopping wasteful spending to continue bringing down interest rates and inflation. Read more.
- Introducing Investment Boost – a new tax incentive to help businesses with the costs of new capital assets, to encourage them to invest, grow and lift wages. Read more.
- Increasing KiwiSaver balances to boost savings by phasing in an increase in the employer and employee contributions. Read more.
- Making major investments in new infrastructure such as roads, schools and hospitals. Read more.
- Growing tourism. Read more.
- Supporting tech startups and the film sector. Read more.
How we’re managing the economy responsibly and getting the books back in shape
- Smaller operating allowance – net new spending of $1.3 billion per year, down from an expected $2.4 billion.
- Returning the books to surplus in 2028/29.
- Finding $21 billion of savings to reinvest in priority areas – including targeting BestStart payments to families earning under $97,000 and requiring a parental assistance test before an 18- or 19-year-old can go on a Jobseeker benefit. Read more.
- Getting debt on a downward trajectory after it increased by $120 billion between 2019 and 2024.
- Creating the environment necessary for solid economic growth averaging 2.7 per cent over the next four years, inflation firmly under control, 240,000 more jobs and wages growing faster than inflation every single year.
PRE-BUDGET ANNOUNCEMENTS
Improving rail reliability
We’re investing in major rail upgrades to maintain and renew the rail freight network and upgrade the Auckland and Wellington metropolitan rail networks. This will deliver a more productive and reliable rail network that supports the economic growth Kiwis need to get ahead.
Promoting economic growth with tax changes
We’re encouraging foreign investment in New Zealand infrastructure and making it easier for start-ups to attract and retain high quality staff. It’s part of our commitment to drive the economic growth needed to create jobs, lift incomes and fund the public services New Zealanders rely on.
Supporting NZ’s film and TV production
National is providing certainty to New Zealand’s film industry with the funding needed to sustain the International Screen Production Rebate. This funding will help bring investment, jobs and income to New Zealand, boosting our economic growth.
New helicopters - a commitment to global security
There is no economic security without national security. That’s why we’re replacing the Defence Force’s ageing maritime helicopters to increase the defensive and offensive capability and surveillance range of New Zealand’s frigates.