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Dear John,

Penny Simmonds - Budget 2025 Newsletter
What an exciting Growth Budget we delivered to the country on Thursday.

To ensure you’re up-to-speed with how it benefits you, I’ve put together this Budget newsletter, which provides a snapshot of initiatives that benefit the South.

The Government’s Economic Plan is Working.
Driving economic growth to help Southlanders get ahead is at the heart of this year’s Budget.

It is only through a strong, growing economy that we can create jobs, deal with the cost of living, and invest in the frontline services like schools, hospitals and police that local people deserve.

After a tough few years, New Zealand’s economy is starting to recover, thanks to National’s careful management. 

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.

However, we cannot take that recovery for granted, which is why we’ve delivered a responsible Budget firmly focused on economic growth.

Tax Incentive to Lift Growth
Southland businesses will benefit from Budget 2025.

Tradies, farmers, and other businesses will be able to access a major new tax incentive to invest in new tools and equipment to boost productivity 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.

This will encourage businesses to invest and grow the economy.

Urgent Care Closer to Home
Southland gained a substantial boost for urgent and after-hours care.

Operational hours at Invercargill’s After Hours Clinic in Clyde Street will increase by a huge 60 hours a week.

The current week-day hours, from 6pm to 9pm, will extend to 8am to 9pm, while the current weekend hours, from noon to 4pm, will increase to 8am to 5pm.

This is a great boost, which will improve access to urgent care for local people, while easing the pressure on our hospital Emergency Department.

Additionally, an extended after-hours service has also been identified for Gore and people living at Stewart Island, Lumsden, Te Anau and Tuatapere, will also get improved urgent healthcare.

KiwiSaver changes to encourage savings
We are improving KiwiSaver to lift savings.

We’re raising the default rate of employees, and matching employer KiwiSaver contributions, from 3 to 4 per cent of salary and wages, phased in over three years, to lift savings and provide greater security for Kiwis.

And it’s important to note that people will still 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.

Helping older people get the right care
New funding in the Budget will also give older people greater access to aged residential care outside of hospitals, through a “timely care transfer initiative.”
We want to ensure that older New Zealanders can get the treatment and care they need in the best possible place.

An 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.

This investment will reduce the delays in discharging older people from hospital and will also free up hospital beds.

12-month prescriptions 
Something that will resonant with a lot of Southland seniors, is the new 12-month prescription initiative.

As you will be aware, doctors can only prescribe most medicines for a maximum of three months, and then people must pay for a follow-up GP appointment or a repeat.

But that’s about to change, and from next year, 12 month prescriptions will be available – saving patients money, and reducing the paperwork and freeing up GP’s for more urgent or complex health needs.

Rates relief for SuperGold cardholders
There was more good news for seniors in last week’s Budget, with the Government making changes to the rates rebate scheme.

A new income abatement threshold, to assist SuperGold Cardholders will be introduced from July 1.

The threshold, to get the maximum rebate, will be lifted from $31,510 to $45,000 – about the rate for a couple receiving superannuation. 

Up to 66,000 more SuperGold cardholders will be helped with their rates payments, thanks to this adjustment.

Law and Order
Delivering more support to frontline Police to help keep Kiwis safe, in communities like ours, is a priority while new investment in prison capacity and frontline staff will help reduce reoffending.

Budget 2025 is investing more than $472 million, over four years, to ensure Corrections can continue to safely and securely manage the growing prison population. This includes funding for 580 new frontline staff, including 368 Corrections Officers.

Largest boost to Learning Support in a generation
Southland parents will be pleased to know that more help is on the way for local children needing learning support.

Key investments include annual increases to teacher aide hours, building up to over 2 million additional hours per year from 2028, Learning Support Co-ordinators for all schools (Year 1-8), expanding early intervention services from early learning through to end of year 1 and an overhaul of the Ongoing Resourcing Scheme (ORS) funding model.

National security Boosted
Pulling our weight in an increasingly volatile world will keep us all safe, while boosting our domestic economy. The Government has allocated $2.7 billion of capital and $563 million of operating funding for priority projects identified in the Defence Capability Plan we released last month.

This includes the replacement of maritime helicopters and complements the $957 million for defence activities, personnel and estate previously announced.

The Growth Budget
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, but we are confident that we have put Kiwis hard-earned taxes where they will have the most impact.

For my Southland constituents – I want you to know that this Government is doing all that it can to support a bright future for us all.

 
Warmest regards, 
Penny Simmonds | MP for Invercargill

 

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