It's great to be part of the team who delivered the Growth Budget in Parliament last week alongside our outstanding Minister of Finance, Hon Nicola Willis. This is a budget which will grow our economy, create jobs and help get Kiwis ahead.

After a tough few years, our economy is starting to recover – inflation and interest rates are down, wages are growing faster than inflation, and growth is expected to average 2.7%, creating 240,000 new jobs over the next few years. But we cannot take this recovery for granted, which is why Budget 2025 is firmly focused on economic growth.

Here are some highlights from Budget 2025 set to benefit the mighty Rangitīkei:

Investment Boost — a major new tax incentive designed to drive investment, lift productivity and grow wages

Effective from 22 May, Investment Boost lets businesses immediately deduct 20 per cent of the cost of new productive assets, on top of normal depreciation. This means a lower tax bill in the year of purchase and better cashflow right when it’s needed.

It applies to most new or imported used assets, including commercial buildings, but not to land, residential property, or second-hand assets already in use here in New Zealand.

KiwiSaver changes to encourage savings

We're raising the default KiwiSaver contribution rate, both for employees and matching employer contributions — from 3 to 4 per cent of wages and salaries, phased in over three years.

From April 2026, the default rate will increase to 3.5 per cent, and then to 4 per cent from April 2028. This gradual shift will help employers and workers alike to plan ahead. There will still be an option to remain at the current 3 per cent.

To help our youngest workers get ahead early, we’re extending government and employer contributions to 16 and 17-year-olds in the workforce. Many young people in Rangitīkei take on after-school or weekend jobs, and this change recognises the value of developing good savings habits from day one.

Backing rural New Zealand

Our government backs farmers, and Budget 2025 delivers for rural communities and the people who keep our region, and our country, moving.

We’re investing $250,000 in Rural Women New Zealand to support their outstanding grassroots work connecting rural families, communities, and businesses. This funding will help RWNZ expand its reach during its centenary year and continue playing a vital role in rural wellbeing and resilience.

We’re also launching a new $2 million Rural Wellbeing Fund to support practical, on-the-ground programmes that build resilience and support the 360,000 hard working men and women who power our primary sector. This is in addition to $1 million to boost the invaluable work of Rural Support Trusts and other local providers offering help to farmers and growers across the country.

Largest boost to Learning Support in a generation

Budget 2025 delivers the most significant boost to learning support in a generation. From 2028, schools will receive over 2 million extra teacher aide hours each year, giving students more tailored help and freeing up teachers to focus on core learning.

Every Year 1–8 school will get a Learning Support Co-ordinator, ensuring students with learning needs are identified early and supported effectively. We're expanding early intervention services from early learning through to the end of Year 1. And we're delivering an historic overhaul of the Ongoing Resourcing Scheme (ORS) funding model to ensure demand for the service is met with guaranteed funding so all students with high and complex needs who are verified for ORS receive the support they need.

See here for detail on how funding will be allocated: Largest boost to Learning Support in a generation | Beehive.govt.nz

Record investment in health delivery

Budget 2025 delivers another record investment in our public health system, helping ensure access to better care, faster, and that our hospitals are equipped for the future.

Over the forecast period, the Government is providing an extra $7 billion in operating funding for health, including a $1.37 billion annual boost to Health New Zealand’s baseline, bringing total health spending next year to $32.7 billion.

Budget 2025 also includes:

$91 million to increase prescription lengths, making it easier for patients to manage long-term conditions.
$447 million to improve access to primary care, helping GPs and nurses deliver care where it’s needed most.
Over $1 billion in new capital investment to upgrade and modernise healthcare facilities across the country. Including upgrades to Palmerston North Hospital, which many Rangitīkei families rely on.

Urgent care closer to home for rural and remote communities

Access to healthcare is one of the biggest concerns I hear about from people across the Rangitīkei. Budget 2025 responds with a $164 million investment over four years to strengthen urgent and after-hours care nationwide.

This funding will ensure 98% of New Zealanders can access urgent care within an hour’s drive of home.

Palmerston North is getting a new 24/7 urgent care service, improving access for our wider region and easing pressure on the hospital.

Up to 70 rural communities — including Taumarunui and Raetihi, will benefit from urgent care improvements, which include extended after-hours, 24/7 on-call in-person clinical support, and improved access to diagnostics and medicines.

Rates relief for up to 66,000 more SuperGold cardholders

From 1 July, SuperGold cardholders will benefit from a new income threshold for the Rates Rebate Scheme, easing pressure on those living on fixed incomes.

The income abatement threshold for the maximum rebate is rising from $31,510 to $45,000 — roughly the annual income for a couple receiving NZ Super. At the same time, the maximum rebate will increase from $790 to $805.

This is the first time we are introducing a separate income abatement threshold to the Rates Rebate Scheme.

This means any senior household earning only superannuation and paying more than $2000 in rates will be eligible for the full rebate. Those earning slightly more may still receive a partial rebate.

Increased support for families

Budget 2025 delivers targeted relief for low and middle-income families through changes to Working for Families.

Around 142,000 families across New Zealand will receive an average of $14 more each fortnight, with most of that support going to families earning under $100,000 a year.

This is being achieved by lifting the abatement threshold, the income level where Working for Families payments start to reduce, so families can keep more of what they earn while still receiving support.

Parents to step up for unemployed teenagers

Budget 2025 introduces changes to ensure young people are focused on work or study — not long-term welfare.

From July 2027, the Government will tighten access to Jobseeker Support and the Emergency Benefit for unemployed 18- and 19-year-olds by introducing a parental assistance test.

In short, if a young person isn’t working or studying and cannot support themselves, their parents, not taxpayers, will be expected to help.

Update on my Member's Bill

My Member’s Bill, which will make it easier for farmers, farm workers and those serving in the military to buy their first home or farm using their KiwiSaver, has been making a few headlines recently.

I had the opportunity to discuss the Bill during Q+A — a great chance to highlight why this change matters for rural New Zealand and those who serve our country.

You can watch it here: Should you be able to buy a farm with your KiwiSaver? | Q+A 2025 - YouTube

I'll keep you updated on progress.

Here to Help 

My team and I are available to assist you.

Reach us by emailing Suze.RedmayneMP@parliament.govt.nz or calling 06 323 7253 (Feilding) or 07 896 8008 (Taumarunui).

Visit us in person at one of our office locations.

Feilding office: 51 Fergusson Street, Feilding - Monday to Friday, 10:00am to 3:00pm.

Taumarunui office: 1/101 Hakiaha Street, Taumarunui - Monday 9:30am to 2:30pm and Thursday 9:30am to 12:30pm.