- Budget 2025 brings KiwiSaver benefits to younger workers and boosts family income support.
- New investment tax write-offs and healthcare improvements aim to grow jobs and lift wages.
- High-income earners and young jobseekers lose out due to tighter benefit and KiwiSaver rules.
Budget 2025 has delivered a mixed bag, offering gains for some New Zealanders while tightening support for others. The government has made significant changes across savings, healthcare, education, and regional development—but not everyone is better off.
Young KiwiSaver members aged 16 and 17 will now receive government contributions for the first time. Employers will also need to match their savings from 2026, extending retirement-saving incentives to a younger generation.
Families earning under $100,000 will see their Working for Families payments increase. Around 142,000 households are expected to gain an average of $14 extra per fortnight to help with day-to-day living expenses.
Businesses investing in equipment will benefit from a new 20 percent tax write-off for new plant and machinery purchases. Treasury modelling predicts this change could boost the economy and increase wages over time.
Older New Zealanders have also received support. People on multiple medications can now get 12-month repeat prescriptions, easing pressure on those with chronic conditions. Rates rebates have also increased, providing extra relief to retirees on fixed incomes.
However, some groups are set to lose out.
High-income earners will no longer get the KiwiSaver top-up from the government. Employer and employee contribution rates will rise from 3 percent to 4 percent, while the government’s contribution is halved—cutting support by up to $261 a year.
Pay equity claimants, mostly women in low-paid sectors, will see progress on 33 existing claims frozen. The delay is expected to save the Crown billions but holds back fair wage outcomes for thousands.
Young jobseekers aged 18 and 19 face stricter rules. Their Jobseeker and Emergency Benefit eligibility will now be tested against parental income, cutting benefits by $163 million over four years.
In Southland and Invercargill, Budget 2025 brings targeted benefits. A new daytime urgent care clinic will be introduced in Invercargill as part of a $164 million nationwide expansion of urgent and after-hours services. The government says this will give locals seven-day access to care.
Tertiary education will receive an additional $398 million over four years, prioritising fields like health, infrastructure and digital technology to grow the domestic workforce.
Additional regional support includes enhanced infrastructure investment, better transport maintenance, and targeted funding for tourism and the primary sector. These measures are expected to create jobs and raise incomes in the South.