Cameron Brewer

31 May 2024

Budget delivers on our promises

Budget 2024 delivers on the Government's key commitments and ensures Kiwis will keep more of what they earn!

We are shifting resources out of the back office of government into the front line. We are also delivering record capital investment for much-needed infrastructure.

We are investing in healthcare, schools and police.

At the same time, Finance Minister Nicola Willis has delivered New Zealand's most fiscally responsible Budget in seven years.

The previous Labour Government contributed to rapidly rising debt. In 2017/18, net core Crown debt was under 20 percent of GDP. It is now over 43 percent of GDP.

Revenue and expenses must be brought back into balance. Debt must come down. It has become even more challenging as the economic forecasts have deteriorated.

Tax relief

Personal income tax thresholds will rise from 31 July - ensuring tax relief for the first time in 14 years. It will put $3.7 billion a year back into the pockets of New Zealanders and is fully funded from savings and revenue initiatives.

They will rise from $14,000 to $15,600; from $48,000 to $53,500; and from $70,000 to $78,100. This reduces income tax for anyone earning over $14,000. To see how these changes benefit you, visit the tax calculator here www.budget.govt.nz/taxcalculator

The in-work tax credit – which helps support low-to-middle income working families with children – will be increased by $50 a fortnight.

Families with young children will also benefit from the new Family Boost childcare payment. From 1 July, parents and caregivers can get back up to 25 per cent of their early childhood education fees, to a maximum fortnightly amount of $150.

Tax Calculator

Healthcare

In Budget 2024, the Government is investing an additional $8.2 billion in the health system. The single biggest portion of this is for Health New Zealand, with $3.4 billion earmarked for hospital and specialist services.

Budget 2024 also provides a $1.77 billion increase to Pharmac's budget to ensure New Zealanders can access the medicines they rely on.

Education

The Government is investing $2.9 billion more in schools and early childhood education. This investment includes $1.5 billion to build new schools and classrooms and to maintain and upgrade existing ones.

In tertiary education, we are ending the failed first-year fees free. That policy failed its goal of lifting participation. Instead, we are committed to funding final-year fees free.

Law and order

The Government is committed to cracking down on crime and keeping communities safe.

In Budget 2024, we are investing $2.9 billion in restoring law and order. We've also committed to delivering 500 additional frontline police officers.

The Coalition Government is getting the country’s finances under control and establishing foundations for growth.

But there is much work ahead. Lifting productivity will be our focus, whether that be through raising educational achievement, delivering better infrastructure, or enabling investment.

This Budget shows what is possible with care and with discipline. We are now on track to return to surplus in 2027/28 - much faster than Labour planned.

Our approach means New Zealanders can look forward with confidence, knowing the Government backs them and is laser focused on getting New Zealand back on track!

CB Signature