Budget 2016

Friday, May 6, 2016 - 14:26
Budget 2016
Finance

Budget 2016
Budget 2016

On 26 May, Finance Minister Bill English delivered the National-led Government’s eighth Budget.

It’s a Budget that’s all about investing in a growing economy, while ensuring we continue to support families and the most vulnerable people who need it most.

New Zealand’s economy is performing well and we’re on track for annual growth of around 3 per cent over the next few years. We’re also on track for growing surpluses and falling debt.

Under the National-led Government, more than 200,000 new jobs have been created over the past three years ago and a further 170,000 new jobs are expected by 2020. By then, the average wage is expected to be $63,000 a year, which is $16,000 more than when National first came into office.

That’s thanks to the National-led Government’s clear economic plan and responsible management of the books.

Budget 2016 is about building on that good progress.

Some highlights include:

  • An additional $2.2 billion for health. That’s to help pay for more lifesaving drugs, more elective surgeries, more disability support services, and to start the roll-out of a national bowel screening programme.
  • Education gets an extra $1.4 billion. We’re investing in building nine new schools and 480 new classrooms, more support for early childhood education, as well as helping our most at-risk children and those with high and special needs.
  • $761 million for an Innovative New Zealand package, which invests in science, skills, and regional economic development initiatives to help grow and diversify the economy.
  • Nearly $300 million for Police as we continue our drive to reduce crime – total crime has dropped by 16 per cent over the past five years - that’s 53,000 fewer crimes.
  • $652 million for a social investment package to drive changes that will help improve the lives of our most vulnerable people.

As a country, New Zealand is more confident and the economy is growing solidly.

Budget 2016 invests in New Zealand’s future to ensure this strong economic growth continues and to help strengthen communities.

Budget announcements

  • Budget supports growing economy
    Rt Hon John Key, Prime Minister

    Budget 2016 will see record investment in health and education and more support for businesses to create jobs on the back of a growing economy, Prime Minister John Key says.
  • Investing in a growing economy
    Hon Bill English, Minister of Finance

    Budget 2016 invests in a growing economy with significant new funding for innovation, infrastructure, the health sector and the most vulnerable New Zealanders while still managing the finances tightly and repaying debt, Finance Minister Bill English says.
  • Budget 2016: Overview
    Hon Bill English, Minister of Finance

    Budget 2016 is a forward-looking Budget that invests in a growing economy.
  • Budget Speech
    Hon Bill English, Minister of Finance

    It’s a privilege to present the eighth Budget of this National-led Government.
  • Govt books show rising surpluses, falling debt
    Hon Bill English, Minister of Finance

    Treasury’s latest forecasts show rising surpluses and falling debt as the Government maintains its careful management of public spending, Finance Minister Bill English says.
  • $652.1m Social Investment for vulnerable NZers
    Hon Bill English, Minister of Finance

    Budget 2016’s Social Investment package will help the most at-risk New Zealanders lead better lives by intervening early and investing in public services tailored to their circumstances, Finance Minister Bill English says.
  • $2.1b investment in public infrastructure
    Hon Bill English, Minister of Finance

    Budget 2016’s $2.1 billion public infrastructure package will deliver on the Government’s commitment to build a stronger, more productive economy and deliver better public services, Finance Minister Bill English says.
  • Government backing Christchurch regeneration
    Hon Gerry Brownlee, Minister supporting Greater Christchurch Regeneration

    The Government’s support for Christchurch has topped $17 billion as new arrangements bring in an exciting phase of regeneration, the Minister supporting Greater Christchurch Regeneration Gerry Brownlee says.
  • Defence Force receives $300.9m new funding
    Hon Gerry Brownlee, Minister of Defence

    The Defence Force receives new operating funding of $300.9 million over four years as part of Budget 2016 to support the work it does, Defence Minister Gerry Brownlee says.
  • $761.4m for an Innovative New Zealand
    Hon Steven Joyce, Minister for Economic Development, Minister of Science and Innovation, and Minister for Tertiary Education, Skills and Employment

    The Government is making a major investment in growing innovation in Budget 2016, through the Innovative New Zealand package to encourage entrepreneurship, skills and economic growth.
  • Fact Sheet 1 – Innovative New Zealand: $410.5m boost for science and innovation
    Hon Steven Joyce, Minister for Economic Development, Minister of Science and Innovation, and Minister for Tertiary Education, Skills and Employment

    The Government will significantly increase its investment in science and innovation through Budget 2016’s Innovative New Zealand package, providing a further $410.5 million in operating funding over the next four years.
  • Fact Sheet 2 – Innovative New Zealand: $256.5 million Tertiary Education, Skills and Employment
    Hon Steven Joyce, Minister for Economic Development, Minister of Science and Innovation, and Minister for Tertiary Education, Skills and Employment

    A total of $256.5 million in operating funding over the next four years will be invested across the tertiary education sector through Budget 2016’s Innovative New Zealand package as the Government continues to incentivise the provision of skills for the 21st century.
  • Fact Sheet 3 – Innovative New Zealand: $94.4m for regional economic development
    Hon Steven Joyce, Minister for Economic Development, Minister of Science and Innovation, and Minister for Tertiary Education, Skills and Employment

    Budget 2016 will provide $94.4 million of new funding over the next four years for regional economic development initiatives that will boost economic growth and benefit communities across regional New Zealand.
  • $258m to boost social housing
    Hon Paula Bennett, Minister for Social Housing

    Budget 2016 invests $258 million to ensure people most in need of social housing have access to this essential service, Social Housing Minister Paula Bennett says.
  • ETS one-for-two subsidy to be phased out
    Hon Paula Bennett, Minister for Climate Change Issues

    The Government is phasing out a subsidy in the Emissions Trading Scheme that allows some businesses to pay one emissions unit for every two tonnes of pollution they emit, Climate Change Minister Paula Bennett says.
  • Health investment increases to a record $16.1b
    Hon Dr Jonathan Coleman, Minister of Health

    The Government’s investment in health will reach a record $16.1 billion in 2016/17, Health Minister Dr Jonathan Coleman says.
  • Bowel screening programme roll-out
    Hon Dr Jonathan Coleman, Minister of Health

    The roll-out of a national bowel screening programme is on track to begin in 2017, Health Minister Dr Jonathan Coleman says.
  • $96m to further increase elective surgery rates
    Hon Dr Jonathan Coleman, Minister of Health

    An extra $96 million over four years will ensure more New Zealanders get the surgery they need, Health Minister Dr Jonathan Coleman says.
  • $208m investment boost for Justice
    Hon Amy Adams, Minister of Justice, and Minister for Courts

    Budget 2016 invests heavily in core justice services, with $208.4 million in additional funding over the next four years – the largest increase to Justice and Courts in almost a decade, Justice and Courts Minister Amy Adams says.
  • Government invests in New Zealand’s security
    Hon Christopher Finlayson, Minister Responsible for the GCSB, and Minister in Charge of the NZSIS

    The Budget will enable our security agencies to remain effective in a rapidly-evolving security environment, NZSIS and GCSB Minister Christopher Finlayson says.
  • Extra $19.7m for Crown prosecutions
    Hon Christopher Finlayson, Attorney-General

    Budget 2016 provides $19.7 million of new operating funding for Crown prosecutions over the next four years.
  • $357.9m invested in key transport projects
    Hon Simon Bridges, Minister of Transport

    The Government is demonstrating its commitment to New Zealand’s economic growth and mobility by investing $357.9 million in key transport projects, Transport Minister Simon Bridges says.
  • $96m for legal aid and community law centres
    Hon Simon Bridges, Associate Minister of Justice

    Budget 2016 will invest an additional $96 million of operating funding over this year and the next four years to make it easier for low-income New Zealanders to access advice from legal aid lawyers and community law centres, Associate Justice Minister Simon Bridges says.
  • $36m for warmer, healthier homes
    Hon Dr Jonathan Coleman, Minister of Health, and Hon Simon Bridges, Minister of Energy and Resources

    The Government is investing $36 million to ensure more New Zealand families live in warmer, drier and healthier homes, Health Minister Dr Jonathan Coleman and Energy and Resources Minister Simon Bridges say.
  • Annual education investment to exceed $11b
    Hon Hekia Parata, Minister of Education

    Additional investment in early childhood education, children with special needs, and new schools and classrooms takes annual education spending above $11 billion for the first time, Education Minister Hekia Parata says.
  • $882.5m investment in school property
    Hon Hekia Parata, Minister of Education, and Hon Nikki Kaye, Associate Minister of Education

    Budget 2016 provides $882.5 million for school property, comprising $727.3 million of capital funding and $155.2 million of operating funding over the next four years, Education Minister Hekia Parata and Associate Education Minister Nikki Kaye say.
  • Extra support for most at-risk students
    Hon Hekia Parata, Minister of Education

    Budget 2016 uses a Social Investment approach to direct an extra $43.2 million of operating funding over four years to schools educating about 150,000 students most at risk of educational failure, Education Minister Hekia Parata says.
  • Extra support for students with special needs
    Hon Hekia Parata, Minister of Education

    Budget 2016 delivers extra support to students who need it most, Education Minister Hekia Parata says.
  • $347.8m for care and protection of young people
    Hon Anne Tolley, Minister for Social Development

    Budget 2016 will invest $347.8 million of operating funding over this year and the next four years for the care and protection of vulnerable children and young people, Social Development Minister Anne Tolley says.
  • $111.5m to support NZers into employment
    Hon Anne Tolley, Minister for Social Development

    Budget 2016 invests $111.5 million of operating funding over four years to support more New Zealanders, especially young people, to get off benefits and gain sustainable employment, Social Development Minister Anne Tolley says.
  • Financial help boosted for low-income earners
    Hon Anne Tolley, Minister for Social Development

    Budget 2016 includes $4.2 million of operating funding over four years to support more low-income families access low and no-interest loans as part of the Community Finance partnership, Social Development Minister Anne Tolley says.
  • $100m boost to develop Auckland housing
    Hon Dr Nick Smith, Minister for Building and Housing

    Housing development on surplus Crown land in Auckland is receiving a $100 million boost in Budget 2016, Building and Housing Minister Dr Nick Smith says.
  • New $100m fund to improve water quality
    Hon Dr Nick Smith, Minister the Environment

    A new fund of $100 million of operating funding over 10 years will support initiatives to clean up New Zealand’s rivers, lakes and aquifers, Environment Minister Dr Nick Smith says.
  • $355.6m funding boost for Corrections
    Hon Judith Collins, Minister of Corrections

    New operating funding of $355.6 million over the next four years will ensure that Corrections can cope with a rising prison population, maintain public safety and reduce reoffending, Corrections Minister Judith Collins says.
  • $299.2m in additional funding for Police
    Hon Judith Collins, Minister of Police

    Budget 2016 demonstrates the Government’s continued commitment to preventing and reducing crime, with Police receiving an extra $299.2 million primarily for pay increases, Police Minister Judith Collins says.
  • $69.8m towards eliminating bovine TB
    Hon Nathan Guy, Minister for Primary Industries

    Budget 2016 confirms $69.8 million of new operating funding over the next four years to help eradicate bovine tuberculosis, Primary Industries Minister Nathan Guy says.
  • $16m new funding to tackle wilding conifers
    Hon Nathan Guy, Minister for Primary Industries, and Hon Maggie Barry, Minister of Conservation

    Budget 2016 provides $16 million of new operating funding over four years to tackle wilding conifers, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say.
  • Low-risk travellers streamlined at the border
    Hon Nathan Guy, Minister for Primary Industries, and Hon Nicky Wagner, Minister of Customs

    Budget 2016 establishes a two-year trial to streamline border processing for low-risk travellers and traders, Primary Industries Minister Nathan Guy and Customs Minister Nicky Wagner say.
  • Extra $6.2m to increase Civil Defence capability
    Hon Nikki Kaye, Minister of Civil Defence

    Budget 2016 will help ensure New Zealanders are better prepared for natural disasters by providing an extra $6.1 million of operating funding over the next four years and $63,000 of new capital funding for the Ministry of Civil Defence and Emergency Management (MCDEM), Civil Defence Minister Nikki Kaye says.
  • $857m to deliver a modern tax system
    Hon Michael Woodhouse, Minister of Revenue

    Budget 2016 invests $503 million of new operating funding over the next four years and $354 million of new capital funding for Inland Revenue’s new tax administration system, Revenue Minister Michael Woodhouse says.
  • Additional Budget support for Pacific peoples
    Hon Peseta Sam Lotu-Iiga, Minister for Pacific Peoples

    Budget 2016 will allocate $6.4 million of new operating funding over four years for Pacific peoples initiatives, Pacific Peoples Minister Peseta Sam Lotu-Iiga says.
  • Tobacco excise to rise 10 per cent per annum
    Hon Peseta Sam Lotu-Iiga, Associate Minister of Health

    Budget 2016 will increase the tax on tobacco by 10 per cent on 1 January each year for the next four years, Associate Health Minister Peseta Sam Lotu-Iiga and Māori Party Co-leader Marama Fox say.
  • $11.6m new funding for the arts
    Hon Maggie Barry, Minister for Arts, Culture and Heritage

    Three major arts organisations will receive a funding boost in Budget 2016, Arts, Culture and Heritage Minister Maggie Barry says.
  • $34.6m boost for te reo Māori
    Hon Te Ururoa Flavell, Minister for Māori Development

    Budget 2016 provides $34.6 million of operating funding over four years to support the revitalisation of te reo Māori across key Māori language initiatives.
  • $17.8m for Māori land services
    Hon Te Ururoa Flavell, Minister for Māori Development

    Budget 2016 provides $14.2 million to support the establishment of the new Māori Land Service, which is a key element of the current reform of Te Ture Whenua Māori Act 1993.
  • $49m to strengthen Whānau-centred services
    Hon Te Ururoa Flavell, Minister for Māori Development, Minister for Whānau Ora

    Whānau Ora will receive a $40 million boost of operating funding over the next four years, allowing it to substantially increase the number of whānau it can support, Māori Development and Whānau Ora Minister Te Ururoa Flavell says.

Pre-Budget announcements
 

19 May 2016

  • Budget 2016: $14.4m for more apprentices
    Hon Steven Joyce, Minister for Tertiary Education, Skills and Employment

    Budget 2016 will provide $14.4 million over four years for more apprenticeship training, Tertiary Education, Skills and Employment Minister Steven Joyce announced today.
  • Budget 2016: $9.6m to meet growing demand for Māori and Pasifika Trades Training
    Hon Steven Joyce, Minister for Tertiary Education, Skills and Employment, and Hon Te Ururoa Flavell, Minister for Maori Development

    An additional $9.6 million over four years will provide for more Māori and Pasifika Trades Training (MPTT) as demand for the programme continues to grow, Tertiary Education, Skills and Employment Minister Steven Joyce and Maori Development Minister Te Ururoa Flavell say.
  • Budget 2016: New Funding for Pacific Employment Service
    Hon Peseta Sam Lotu-Iiga, Minister for Pacific Peoples

    Budget 2016 contains new funding to help pacific youth find work or take up suitable training programmes, Pacific People’s Minister Peseta Sam Lotu-Iiga says.

18 May 2016

  • Budget 2016: $46m to support victims and prevent sexual violence
    Hon Amy Adams, Minister of Justice, and Hon Anne Tolley, Minister for Social Development

    Budget 2016 will invest $46 million of operating funding over four years to better support victims and prevent sexual violence, Justice Minister Amy Adams and Social Development Minister Anne Tolley say.

17 May 2016

  • Budget 2016: $97m extra for health research
    Hon Steven Joyce, Minister of Science and Innovation, and Hon Dr Jonathan Coleman, Minister of Health
    The Government will increase funding for health research by $97 million over the next four years, Science and Innovation Minister Steven Joyce and Health Minister Jonathan Coleman announced today.

16 May 2016

  • Budget 2016: $15m to commercialise new Kiwi hi-tech
    Hon Steven Joyce, Minister of Science and Innovation
    Science and Innovation Minister Steven Joyce today announced $15 million of additional funding over four years for two schemes that speed up the commercialisation of new clever technologies developed by scientists and entrepreneurs around New Zealand.

15 May 2016

  • Budget 2016: Cycle trail funding boosts regions
    Rt Hon John Key, Prime Minister and Minister of Tourism
    Budget 2016 will provide $25 million in additional funding over the next four years to ensure the New Zealand Cycle Trail, Nga Haerenga continues to offer a world-class visitor experience, Prime Minister and Tourism Minister John Key announced today.

13 May 2016

  • Budget 2016: Tourism sector gets further boost
    Rt Hon John Key, Prime Minister and Minister of Tourism
    The Government will invest an additional $20 million over four years to further support tourism across New Zealand, Prime Minister and Tourism Minister John Key announced today.
  • Budget 2016: $20m for high performance sport & anti-doping
    Hon Dr Jonathan Coleman, Minister for Sport and Recreation
    An extra $20 million will be invested over four years to maintain momentum in high performance sport and boost Drug Free Sport NZ, Sport and Recreation Minister Jonathan Coleman says.

12 May 2016

11 May 2016

  • Budget 2016: More kids to get teacher aide help
    Hon Hekia Parata, Minister of Education

    An extra 1250 students will benefit from extra teacher aides thanks to a $15.3 million Budget 2016 funding increase for in-class support, Education Minister Hekia Parata announced today.

10 May 2016

  • Budget 2016: $12.6m increase for Māori Housing
    Hon Te Ururoa Flavell, Minister for Maori Development

    The Māori Housing Network is to receive a $12.6 million boost over the next four years, helping more whānau to realise their housing aspirations, Maori Development Minister Te Ururoa Flavell says.

9 May 2016

  • Budget 2016: 3000 emergency housing places funded
    Hon Paula Bennett, Minister for Social Housing

    For the first time, the Government will pay for about 3000 emergency housing places across the country per year so people have access to a roof over their head when they need it most.

7 May 2016

  • Budget 2016: Battle for our Birds 2016
    Hon Maggie Barry, Minister of Conservation

    The largest pest control operation in New Zealand’s history will be launched this winter in response to a pest plague which threatens vulnerable native wildlife, Conservation Minister Maggie Barry says.

5 May 2016

  • Budget 2016: $22.2m to boost cyber security
    Hon Amy Adams, Minister for Communications

    An investment of $22.2 million from Budget 2016 will enable a significant advancement in the country’s cyber security infrastructure, Communications Minister Amy Adams announced today.

4 May 2016

  • Budget 2016: $39 million extra for Pharmac
    Hon Dr Jonathan Coleman, Minister of Health

    An extra $39 million will be invested in 2016/17 to enable Pharmac to provide more New Zealanders with access to new medicines, Health Minister Jonathan Coleman says.

29 April 2016

13 April 2016

  • Pre-Budget Speech to Business New Zealand event
    Rt Hon John Key, Prime Minister

    It’s good to be back here for my annual pre-Budget speech and I want to thank Business New Zealand for hosting me once again.

  • Budget 2016: SME-friendly tax package
    Hon Bill English, Minister of Finance, and Hon Michael Woodhouse, Minister of Revenue

    An SME-friendly tax package announced by the Prime Minister today will reduce compliance costs and make tax simpler for small businesses, Finance Minister Bill English and Revenue Minister Michael Woodhouse say.
  • Tax changes latest move to help small business
    Hon Craig Foss, Minister for Small Business

    Small Business Minister Craig Foss says changing the provisional tax system is yet another way the Government is helping small businesses grow and thrive.