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Dear John, I am very pleased to share with you the details of Budget 2025 – the Growth Budget.
The Government’s economic plan is working. By stopping wasteful spending, inflation is down from 7.3 per cent to 2.5 per cent and mortgage interest rates are falling.
Treasury’s latest forecasts show economic growth averaging 2.7 per cent per year, 240,000 new jobs created, and wages growing faster than inflation every year. This is on top of the real average wage growing nearly $1100 since the election, and tax relief in Budget 2024.
But we cannot take an economic recovery for granted. It requires careful management. That’s why Budget 2025 is firmly focused on growing the economy to help Kiwis get ahead. I’m excited to share with the people of Selwyn, some of the highlights that will provide benefits for our communities:
Tax Incentive to Lift Growth Selwyn is home to a number of businesses, and they are set to benefit from this year’s budget. Budget 2025 launches Investment Boost, a major new tax incentive to encourage businesses to invest, grow the economy, and lift wages. Investment Boost allows a business to immediately deduct 20 per cent of the cost of a new asset, on top of depreciation, meaning a much lower tax bill in the year of purchase. Cashflows are better, making more potential investments stack up financially. Investment Boost starts today and applies to new assets purchased in New Zealand as well as new and used assets imported from overseas. It includes commercial buildings but excludes land, residential buildings, and assets already in use in New Zealand. There’s no cap on the value of eligible investments. All businesses, regardless of size, can benefit.
KiwiSaver changes to encourage savings
To lift savings and provide greater security for Kiwis, we’re raising the default rate of employee and matching employer KiwiSaver contributions from 3 to 4 per cent of salary and wages, phased in over three years. People will have the choice of remaining on the 3 per cent rate if they choose. To encourage first-time employees to adopt the savings habit, we’re extending the Government contribution, and employer matching, to 16 and 17-year-olds in the workforce. We’re also making some changes to the Government contribution to ensure the Scheme’s costs to the taxpayer remain sustainable. The annual government contribution will be halved to 25 cents for each dollar a member contributes each year, up to a maximum of $260.72. Members with an income of more than $180,000 will no longer receive the Government contribution. Putting these changes together, the KiwiSaver balances of employees contributing at the new 4 per cent default rate will grow faster than they do at the current 3 per cent default rate, providing a larger balance at age 65 and a larger deposit when people use KiwiSaver to buy their first home.
Largest boost to Learning Support in a generation I’m incredibly proud to share with parents and teachers across Selwyn, that more help will be on the way for our kids. We all know giving kids a worldclass education will set them up for a bright future, and students that require extra support will now have the help they need. The Government is delivering the most significant investment in learning support in a generation to better support Kiwi kids to thrive at school. Key investments include substantial annual increases to teacher aide hours, building up to over 2 million additional teacher aide hours per year, from 2028; Learning Support Co-ordinators for all schools with Year 1-8 students; expanding early intervention services from early learning through to end of year 1; and an historic overhaul of the Ongoing Resourcing Scheme (ORS) funding model to ensure that 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. The learning support funding package includes:
Across all learning support services in Vote Education, we are building up to more than 2 million additional teacher aide hours into the system every year from 2028. The education sector has been calling for more support for a long time, and this Government is delivering results. Selwyn kids deserve a worldclass education so that they can get ahead.
Record investment in health delivery
Budget 2025 provides a $7 billion increase in Vote Health operating funding over the forecast period. This includes the $1.37 billion per annum increase to Health New Zealand’s baseline – bringing total health spending in 2025/26 to $32.7 billion. Other new initiatives include $447 million to support increased access to primary care. Budget 2025 also invests over $1 billion in new capital to deliver modern, fit-for-purpose infrastructure that meets the health needs of New Zealand’s growing and ageing population. We’re also making real progress on our health targets. Emergency department wait times are coming down, cancer patients are being seen faster, and childhood immunisation rates are improving.
Urgent care closer to home for rural and remote communities
Selwyn is home to some incredible rural communities. Ensuring Kiwis have access to healthcare is a key priority for this Government. Through Budget 2025, Kiwis living in rural and remote communities will benefit from a significant funding boost to urgent and after-hours healthcare services. Through an investment of $164 million over four years to strengthen urgent and after-hours care nationwide, 98 per cent of Kiwis will be able to access these services within one hour’s drive of their home.
12-month prescriptions put money in patients’ pockets
Budget 2025 will support those in Selwyn who rely on prescriptions. New Zealanders will soon be able to receive 12-month prescriptions for their medicines, delivering savings to patients on long-term medications. Currently, doctors and other prescribers can only prescribe most medicines for a maximum of three months at a time. Patients must then pay their GP for a follow-up appointment or to issue a repeat prescription every three months. From the first quarter of 2026, prescribers will be able to issue prescriptions for up to 12 months if it is clinically appropriate and safe to do so. While patients will still collect their medication from a pharmacy every three months, they will no longer need to return to their doctor for a new prescription each time. This change could save up to $105 a year in GP fees for patients who need to renew their prescriptions four times annually. It’s a win-win for patients and the health system – fewer avoidable hospitalisations, better health outcomes, and reduced long term costs.
Rates relief for up to 66,000 more SuperGold cardholders
Selwyn is also home to a wonderful community of SuperGold cardholders, and I have great news for you. Budget 2025 will help up to 66,000 more SuperGold Cardholders with their rates payments. It’s a really tough time for many Kiwis right now and this Government is working at pace to grow the economy so we can take some of the financial pressure off households and ease the cost of living. That’s why we’re making changes to the rates rebate scheme for SuperGold cardholders. The Government will introduce a new income abatement threshold to assist SuperGold Cardholders from July 1. The income abatement threshold to be eligible for the maximum rebate for SuperGold Cardholders and their households will be lifted from $31,510 to $45,000 – about the rate for a couple receiving superannuation. The maximum rebate for the scheme will also increase from $790 to $805. This is the first time we are introducing a separate income abatement threshold to the Rates Rebate Scheme. It will mean that every SuperGold Cardholder earning only NZ Superannuation, with rates higher than $2000, will be eligible for the full rebate. SuperGold Cardholders earning more than $45,000 may also be entitled to a smaller rebate.
Helping older people get the right care
I know that acquiring residential care for loved ones has been a big concern for many people who live in the district. In Budget 2025, new funding will give older people greater access to aged residential care and longer care outside of hospitals. This investment of $24 million over four years will help people, who don’t need continued hospital treatment, to move to other care places in the community, including aged residential care.
Improving care for disabled New Zealanders
I’m very proud to share that more than 7,000 disabled New Zealanders will receive improved residential care, thanks to a $240 million four-year funding boost in today’s Budget. This is on top of more than $1 billion already funded annually for Disability Support Services. It means 89 residential providers across the country, and the people they care for, are better supported. As part of Budget 2025, the Government will increase Disability Support Services (DSS) funding for residential care by $60 million each year over the next four years, starting from 1 July 2025. DSS provides essential services and supports to more than 52,000 disabled people, including about 7,200 people in residential care facilities. Previously, funding for carers was unpredictable, subject to change or interruption, and varied across regions. The new funding will remove that uncertainty.
Budget 2025 is about growing New Zealand’s economy, meaning more jobs, better healthcare and education. Just like Kiwi households, we’ve had to make tough choices about what we spend money on. We are confident we have put Kiwis hard-earned taxes where they will have the most impact.
To the people of Selwyn, know that our government is doing everything it can to support a bright future for all New Zealanders. Here to help As always, my team and I are here and available to help. You can get in touch with us by emailing [email protected], phone 03 344 2800, or pop into the office in Rolleston Square between Monday and Fridays, 10:00am - 4:00pm. Kind regards,
Hon Nicola Grigg |
 41 Pipitea Street Authorised by Nicola Grigg, Parliament Buildings, Wellington |
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