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.
