It’s been described as the Growth / Reprioritisation Budget but where is the money going to be spent and what’s in it for Pacific people?
Finance Minister, Nicola Willis outlined that the government is spending under its self-imposed operating allowance of $1.3 billion dollars, in the house yesterday.
This basically means money for the budget has largely come from cuts in other areas as well as the billions saved from the controversial changes to the pay equity law.
For the Pasifika community this translates into a lot of “reprioritisiation” across many areas including the Ministry for Pacific Peoples.
The ministry’s operational funding has been reduced by over $35 million dollars, this includes:
- Closing the Tauola Business Fund, a contestable fund to foster Pacific business development ($14 million) (Pacific Business Trust and Pacific Business Village continue to be funded at $6.3 million)
- Reprioritisation of Tupu Aotearoa Funding, ($22 million, previously also funded under the Covid 19 Response and Recovery Fund). This continues to be funded alongside Ministry of Social Development employment programmes.
- Cutting back the Ministry’s contribution to the Dawn Raids Reconciliation from 2027 ($840,000).
- An allocation of $1 million for Pasifika Wardens, part of the $14 million allocated for Maori, Pasifika Wardens, and the Maori Women’s Welfare League.
Citing a lack of progress, the government has withdrawn funding for the National Fale Malae building project in Wellington.
Back in 2020, $10 million was allocated for the project but just $2.7 million has been spent to date. The remaining $6.6 million will be reallocated across other Ministry of Arts, Culture and Heritage projects.
Business investment, health, education, law and order, housing and community, social security and welfare, are some of the big winners of the budget. The details are as follows:
- Businesses get a tax incentive for investing in productive assets (tools, machinery, and equipment). They can deduct 20 percent of the new asset’s value from that year’s taxable income.
- $774 million will be put aside to respond to the Royal Commission of Abuse in Care
- $760 million goes to support the provision of Disability Support services
- From 2026, Kiwis will be able to receive 12 month prescriptions for medications.
- The income threshold for families with children on low to middle income has increased. On average they can receive $14 more per fortnight. However the first year of Best Start (extra support for the first three years of a child’s life) will be income tested as is currently for the second and third year.
- An extended rates relief scheme is set to benefit up to 66,000 SuperGold cardholders.
- And 18 to 19 year olds seeking job seeker support and emergency benefits will be assessed based on whether their parents/guardians can support them instead.
However, one area where the government appears to have pulled back from is in its KiwiSaver contributions. The changes are as follows
- The government is halving its Kiwisaver contribution of $521 to a max of $260 from July 1. Employees and employers will pay more with an increase to a four percent contribution over the next three years (with an option to temporarily drop to 3 percent).
- From July the government contribution will extend to 16 and 17 year olds and employer matching from April 2026.
- The government has also stripped the government contribution for people with an income of more than $180,000.
