WEBVTT - Budget 2025: What you need to know

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<v Speaker 1>Fielder.

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<v Speaker 2>I'm Chelsea Daniels and this is a breaking news episode

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<v Speaker 2>of the front Page, a daily podcast presented by the

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<v Speaker 2>New Zealand Herald officially dubbed the Growth Budget unofficially the

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<v Speaker 2>NOBS Budget. Finance Minister Nikola Willis has unveiled when New

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<v Speaker 2>Zealand's dollars are going to be spent from the outset.

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<v Speaker 2>She promised no frills or access, saying for months is

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<v Speaker 2>very little left in the kitty.

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<v Speaker 3>The economic outlook presented alongside this budget is a bright

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<v Speaker 3>one after a tough few years. Growth, jobs and wages

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<v Speaker 3>are set to rise. The government is not promising that

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<v Speaker 3>today's budget will solve all New zealanders problems, but we

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<v Speaker 3>do promise that the decisions we are taking now will

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<v Speaker 3>sit our country up for a better future.

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<v Speaker 2>So what's been announced today well a big change in

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<v Speaker 2>key we Saver, with the Government announcing it'll be harving

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<v Speaker 2>its yearly maximum contribution rates for key we Saver to

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<v Speaker 2>two hundred and sixty dollars, down from five hundred and

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<v Speaker 2>twenty one. It also won't be extending it to those

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<v Speaker 2>earning more than one hundred and eighty thousand dollars a year.

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<v Speaker 2>Default employer and employee contributions will rise from three to

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<v Speaker 2>four percent, phased in over the next three years, although

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<v Speaker 2>members can temporarily opt out, and sixteen and seventeen year

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<v Speaker 2>olds will become eligible to receive a government contribution. There's

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<v Speaker 2>also a new six point six billion dollar tax incentive

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<v Speaker 2>for businesses, allowing twenty percent of a new assets value

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<v Speaker 2>to be deducted from annual taxable income. This will apply

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<v Speaker 2>to assets like machinery, tools and equipment, covering their value

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<v Speaker 2>on top of normal depreciation, and is believed to increase

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<v Speaker 2>our GDP by one percent. In total, there will be

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<v Speaker 2>twenty one point four billion dollars in savings over the

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<v Speaker 2>next four years.

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<v Speaker 1>The majority of.

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<v Speaker 2>That is made up of the twelve point eight billion

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<v Speaker 2>dollars saved by the controversial changes made to the pay

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<v Speaker 2>Equity scheme. There are two hundred and twenty eight spending

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<v Speaker 2>initiatives as part of this budget, but here are some

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<v Speaker 2>of the highlights. Looking at health, seven billion dollars will

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<v Speaker 2>be spent on health over the next four years. People

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<v Speaker 2>will now be able to go a year without having

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<v Speaker 2>to go to the doctor to get a repeat prescription,

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<v Speaker 2>up from the current maximum of three months. That will

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<v Speaker 2>cost ninety one million dollars over the next four years

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<v Speaker 2>and comes into effect in the first quarter of twenty

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<v Speaker 2>twenty six. One billion will be invested in hospital facilities,

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<v Speaker 2>including a new emergency department at Wellington Regional Hospital and

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<v Speaker 2>a one hundred and twenty eight bed inpatient building in Nelson.

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<v Speaker 1>Onto.

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<v Speaker 2>Families Best Start will be income tested, diminishing four families

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<v Speaker 2>with an income of seventy nine thousand dollars a year

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<v Speaker 2>and cutting off entirely when a family earns more than

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<v Speaker 2>ninety seven thousand dollars. The changes will affect families of

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<v Speaker 2>children before April first next year. Those savings will see

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<v Speaker 2>one hundred and forty two thousand families get an extra

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<v Speaker 2>fourteen dollars a fortnight on average. Under Working for Families changes,

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<v Speaker 2>the government is also changing the abatement threshold for eligible

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<v Speaker 2>families from forty two thousand, seven hundred dollars to forty

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<v Speaker 2>four thousand, nine hundred dollars and the rate from twenty

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<v Speaker 2>seven percent to twenty seven point five percent.

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<v Speaker 1>Let's look at education.

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<v Speaker 2>A boost to learning support makes up a large portion

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<v Speaker 2>of new education spending two point five billion dollars worth

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<v Speaker 2>over the next four years. All primary schools will be

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<v Speaker 2>funded for a learning support coordinator from twenty twenty eight.

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<v Speaker 2>A new multi studies subject area is being introduced for

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<v Speaker 2>years eleven to thirteen, and the government's also revealed it'll

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<v Speaker 2>be looking domestically and overseas in its marketing campaign to

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<v Speaker 2>bring in more teachers. Meanwhile, funding for private school subsidies

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<v Speaker 2>will increase by eleven percent after staying the same for

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<v Speaker 2>the last fifteen years.

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<v Speaker 1>And now let's look at benefits.

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<v Speaker 2>A big change to unemployment benefits, including job seeker cuts

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<v Speaker 2>for teens. Many unemployed teenagers who do not study will

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<v Speaker 2>not be eligible for the benefit from mid twenty twenty seven.

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<v Speaker 2>The government says this group should be supported by their

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<v Speaker 2>parents or guardians.

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<v Speaker 1>Not the taxpayer.

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<v Speaker 2>Eighteen and nineteen year olds who are unable to rely

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<v Speaker 2>on parental support will be eligible for the money. So

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<v Speaker 2>much of what was included in today's budget has been

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<v Speaker 2>announced over the last month by the government. Here are

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<v Speaker 2>just some of those headline figures. More than two billion

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<v Speaker 2>dollars was announced to replace the Defense Force's aging fleet

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<v Speaker 2>of maritime helicopters, and a nine hundred and fifty seven

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<v Speaker 2>million dollar boost over four years in defense, one hundred

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<v Speaker 2>and forty million dollars to tackle student attendance, Nearly one

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<v Speaker 2>hundred million dollars over the next four years to boost

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<v Speaker 2>maths achievement in primary and intermediate schools.

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<v Speaker 1>One hundred and sixty three.

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<v Speaker 2>Million dollars over four years to expand and maintain urgent

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<v Speaker 2>and after hours healthcare services nationwide. Five hundred and seventy

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<v Speaker 2>seven million dollars over four years to support TV and

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<v Speaker 2>film production. Six hundred million dollars in funding for improving

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<v Speaker 2>rail reliability, upgrades and maintenance. Seven hundred and seventy four

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<v Speaker 2>million dollars is allocated for the cases and improved redress

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<v Speaker 2>for survivors of abusing care. Two hundred and seventy five

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<v Speaker 2>million dollars over four years will overhaul social services, including

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<v Speaker 2>one hundred and ninety million dollars for a Social Investment Fund.

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<v Speaker 2>That fund will invest in at least twenty initiatives, including

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<v Speaker 2>parental support and preventing vulnerable people from entering state care.

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<v Speaker 2>An extra one point five million dollars has been committed

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<v Speaker 2>annually to multi wardens, bringing government funding to two point

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<v Speaker 2>seven million and thirty five million.

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<v Speaker 1>Dollars over four years.

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<v Speaker 2>Will go towards border protection to support sixty additional roles

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<v Speaker 2>to tackle drug smuggling. That's it for this bonus budget

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<v Speaker 2>episode of the Front Page. You can read more about

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<v Speaker 2>today's stories and extensive news coverage at enzherld dot co

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<v Speaker 2>dot nz. The Front Page is produced by Ethan Sills

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<v Speaker 2>and Richard Martin, who.

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<v Speaker 1>Is also a sound engineer. I'm Chelsea Daniels.

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<v Speaker 2>Subscribe to the Front Page on iHeartRadio or wherever you

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<v Speaker 2>get your podcasts, and tune in tomorrow as we'll be

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<v Speaker 2>crunching the numbers with Herald Business Editor at Large Liam

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<v Speaker 2>Dan