Budget 2005

Budget 2005 is my sixth as Minister of Finance.

It continues the themes established in the government’s previous five budgets: a commitment to public health and education and to New Zealand families combined with strong fiscal and economic management and policies to promote business development.

Michael Cullen

Minister of Finance

Budget 2005

Michael Cullen

Speech notes for Appropriationb (2005/06 Estimates) Bill, delivered 19 May 2005 to Parliament

Budget for a more secure future

Hon Dr Michael Cullen, Minister of Finance

Budget 2005 delivers large increases in social spending together with significant cuts to business tax and a package to encourage New Zealanders to save says Finance Minister Michael Cullen.

Budget 2005 – fair, responsible, inclusive

Rt Hon Helen Clark, Prime Minister of New Zealand

Prime Minister Helen Clark says Budget 2005 is another important step in building strong foundations for sustainable growth, making social investments, and helping New Zealanders build a stake in their country.

Post-Budget Announcements

NZ Customs to establish liaison position in Washington

Rick Barker, Customs

26 May 2005

Customs Service to get new officer at NZ's US Embassy enhance NZ.

Budget 2005: Government confirms commitment to Pacific broadcasting

Steve Maharey, Broadcasting

24 May 2005

New funding of $12 million over the next four years for Pacific radio network Niu FM will ensure a strong voice for Pacific communities

Budget Announcements

Securing Your Future: budget savings package

Hon Dr Michael Cullen, Minister of Finance

Budget 2005 will help New Zealanders to save, giving them greater security and choice and strengthening the economy says Finance Minister Michael Cullen.

A major advance for retirement savings

Hon Dr Michael Cullen, Minister of Finance

The creation of KiwiSaver complements the government's commitment to ensuring New Zealanders can enjoy a decent income when they retire says Finance Minister Michael Cullen.

A hand up to home ownership

Hon Steve Maharey, Minister of Housing

The Kiwi dream of owning your own home will be brought within the grasp of thousands more New Zealanders each year as a result of Budget 2005 says Housing Minister Steve Maharey.

Securing Your Future: questions and answers

See also Cabinet papers released on the Securing Your Future website on Budget day: www.securingyourfuture.govt.nz

Multi-million dollar suite of pro-business tax cuts

Hon Dr Michael Cullen, Minister of Finance

Budget 2005 reinforces the government’s commitment to economic growth, delivering a multi-million dollar suite of pro-business tax changes says Finance Minister Michael Cullen.

Tax changes for low income and small investors

Hon Dr Michael Cullen, Minister of Finance

Tax changes to create a fairer savings regime for low income and small investors are outlined in Budget 2005.

Income tax inflation indexed from 1 April 2008

Hon Dr Michael Cullen, Minister of Finance

Personal tax rate thresholds will be raised 6.12 per cent on 1 April 2008 under a Budget 2005 commitment to inflation proof incomes says Finance Minister Michael Cullen.

Trade negotiations strength boosted

Hon Jim Sutton, Minister for Trade Negotiations

Budget 2005 allocates a further $31.1 million over the next four years to conclude trade agreement negotiations and ensure agreements deliver real gains to New Zealand business and the economy says Trade Negotiations Minister Jim Sutton.

$204 million boost for innovation

Hon Steve Maharey, Minister of Research, Science and Technology

The government will invest an additional $204 million in research, science and technology over the next four years, says Research, Science and Technology Minister Steve Maharey.

$8.9 million budget boost for tourism

Hon Mark Burton, Minister of Tourism

Tourism New Zealand receives $8.9 million in this year's budget to continue promoting New Zealand overseas in three key tourist markets – the United States, Britain and Japan.

$44.6m for apprentices and industry skills

Hon Trevor Mallard, Minister of Education

A $44.6 million four-year package in Budget 2005 for Modern Apprenticeships, skills development and industry training continues to strengthen the conditions for sustainable economic growth says Education Minister Trevor Mallard.

$300 million more for land transport

Hon Pete Hodgson, Minister of Transport

The government will increase land transport funding by $100 million a year for the three years from 2006-07 says Transport Minister Pete Hodgson.

Government keeps Asian relations to fore

Hon Phil Goff, Minister of Foreign Affairs and Trade

New funding of $2.6 million for Asia-related projects underlines the government’s commitment to further advancing New Zealand’s relations with Asia says Foreign Minister Phil Goff.

Building capability into the economy

Hon Jim Anderton, Minister for Economic Development

Budget 2005 confirms the Labour-Progressive Government’s commitment to building a sustainable and inclusive economy, capable of continued growth, for the benefit of all New Zealanders says Economic Development Minister Jim Anderton.

$22.6 million of new funding for building services

Hon Chris Carter, Minister for Building Issues

The government's ability to monitor and solve problems in New Zealand's building sector will be significantly enhanced with a $22.6 million package of new funding, Building Issues Minister Chris Carter announced today.

Investing in early childhood education

Hon Trevor Mallard, Education Minister

Budget 2005 continues the government’s drive to lift the education of New Zealand’s youngest children, with a significant new investment of $152 million over the next four years says Education Minister Trevor Mallard.

More teachers and funding for schools

Hon Trevor Mallard, Education Minister

The government is investing an additional $169.1 million over four years to put more teachers into schools and increase schools' operational funding, says Education Minister Trevor Mallard.

Investment in technology in schools nears $60m

Hon Trevor Mallard, Education Minister

The government is investing an additional $30.2 million in Information and Communications Technologies (ICT) over the next four years to improve teaching and learning in schools says Education Minister Trevor Mallard.

Effective schools funding rises to $28.5 million

Hon Trevor Mallard, Education Minister

Highly effective schools will receive $28.5 million over the next four years to encourage them to continue their high standards and share best practice across the sector says Education Minister Trevor Mallard.

Tertiary education funding switches to quality

Hon Trevor Mallard, Education Minister

Tertiary education initiatives in Budget 2005 will strengthen the quality and relevance of tertiary teaching, learning and research in New Zealand, says Education Minister Trevor Mallard.

Increased support for tertiary students

Hon Trevor Mallard, Education Minister

Budget 2005 widens eligibility for student allowances and introduces new scholarships to support our most academically capable students says Education Minister Trevor Mallard.

Budget 2005 health overview

Pete Hodgson, Associate Health

Speech Notes for Budget briefing on Health measures in Budget 2005, setting out headline numbers then highlight particular areas of spending

$59 million for disability support services

Hon Pete Hodgson, Associate Minister of Health

An additional $59 million in 2005-06 for residential disability support services and the provision of assessments says Associate Health Minister Pete Hodgson.

$71 million boost for residential aged care

Hon Pete Hodgson Associate Minister of Health

Funding for residential care for older New Zealanders has received a $70.9 million boost in Budget 2005 says Associate Minister of Health Pete Hodgson.

Home-based care services get $18.7 million boost

Hon Pete Hodgson, Associate Minister of Health

Baseline funding for the provision of home-based support increases by $18.7 million in this year's budget says Associate Minister of Health, Pete Hodgson.

Keeping asset testing promise for older NZers

Hon Pete Hodgson, Associate Minister of Health

Budget 2005 follows through on the government's commitment to phase out asset testing for older New Zealanders in residential care says Associate Minister of Health, Pete Hodgson.

Health funding largest ever

Hon Annette King, Minister of Health

The government’s commitment to effective and responsive health services for all New Zealanders is reflected in new budget spending of $969.7 million in 2005-06 and $4.09 billion over the next four years says Health Minister

Low cost health care visits for 18 to 24 year olds

Hon Annette King, Minister of Health

The 2005 Budget provides funding from 1 July for lower cost primary health care visits and lower charges on most prescription items for all 18 to 24 year olds enrolled in Primary Health Organisations says Health Minister Annette King.

Government honours pledge to pay nurses fairly

Hon Annette King, Minister of Health

District health boards will get more than half a billion dollars over the next four years to help them meet the cost of this year's historic pay increase for nurses says Health Minister Annette King.

Older people’s needs recognised in budget

Hon Ruth Dyson, Minister for Senior Citizens

Older people have benefited greatly from a range of initiatives in this year’s budget, says Senior Citizens Minister Ruth Dyson.

Record police resources deliver record results

Hon George Hawkins, Police Minister

A record police budget will deliver a record number of police staff throughout New Zealand says Police Minister George Hawkins.

$156.5 million to ease Courts, justice pressures

Hon Phil Goff, Minister of Justice

Additional funding of $156.5 million over the next four years, says Justice Minister Phil Goff, will ease pressure on court services and justice policy work.

Budget funds more court security staff

Hon Rick Barker, Minister for Courts

Budget 2005 will improve court safety by funding eighteen more security officers to work in courts around the country says Courts Minister Rick Barker

Government boosts biosecurity again

Hon Jim Sutton, Minister for Biosecurity

Biosecurity funding has been boosted again says Biosecurity Minister Jim Sutton.

Housing increase targets those in need

Hon Steve Maharey, Housing Minister

Budget 2005 allocates an additional $134 million over the next four years to provide 1300 new homes for those in need, says Housing Minister Steve Maharey.

A sure start for children in need

Hon Steve Maharey, Minister for Social Development and Employment

Programmes aimed at children and families in greatest need will get a $47 million boost in this year's budget, says Social Development and Employment Minister Steve Maharey.

$100 million focus on jobs

Hon Steve Maharey, Minister for Social Development and Employment

The long term unemployed will be helped into jobs through a $21 million funding increase in the budget says Social Development and Employment Minister Steve Maharey.

Increasing NZ's overseas aid

Hon Marian Hobbs, Associate Minister of Foreign Affairs and Trade

New Zealand's spending on overseas aid is expanding by 21 per cent; the largest increase in recent decades says Associate Minister of Foreign Affairs and Trade, Marian Hobbs.

$30 million boost for public broadcasting

Hon Steve Maharey, Broadcasting Minister

Investing in local content and strengthening Radio New Zealand are key features of a $30 million investment in broadcasting over the next four years, says Broadcasting Minister Steve Maharey.

Boost for sustainable business practice

Hon Marian Hobbs, Environment Minister

New spending of $12.4 million over the next four years is committed in today's budget to promote sustainable business practices says Environment Minister Marian Hobbs.

Volunteers and regions get sport boost

Hon Trevor Mallard, Sport and Recreation Minister

Grass roots sports, volunteers and regional sports development will get a major funding boost says Sport and Recreation Minister Trevor Mallard.

$3 million towards global disarmament

Hon Marian Hobbs, Disarmament and Arms Control Minister

More than $3 million, over the next four years, has been committed to the G8 Global Partnership Against the Spread of Weapons and Materials of Mass Destruction (WMD) says Disarmament and Arms Control Minister Marian Hobbs.

Enhanced security for overseas posts

Hon Phil Goff, Foreign Affairs and Trade Minister

Security measures for staff and visitors to New Zealand's embassies and overseas posts are being strengthened says Foreign Minister Phil Goff.

$19.4m for injury treatment and rehabilitation

Hon Ruth Dyson, Minister for ACC

Budget 2005 will boost ACC contributions towards treatment costs and rehabilitation by $19.4 million over the next four years says ACC Minister Ruth Dyson.

Realising Maori potential

Hon Parekura Horomia, Maori Affairs Minister

Budget 2005 supports a new and innovative approach to Maori Affairs policy guided by achieving and realising Maori potential, says Maori Affairs Minister Parekura Horomia.

Quality in education critical to Maori success

Hon Parekura Horomia, Associate Education Minister

Budget 2005 reflects the government’s determination to lift Maori educational attainment, Associate Education Minister Parekura Horomia announced today.

$4m package to support ethnic communities

Hon Chris Carter, Ethnic Affairs Minister

Support and advocacy work with New Zealand's ethnic communities is to be enhanced with a $4.1 million package of new funding for the Office of Ethnic Affairs says Ethnic Affairs Minister Chris Carter.

Pre-Budget announcements:

New funding of $730,000 has been allocated to improve occupational health in NZ workplaces

Restoring confidence in communication centres

11 May 2005

George Hawkins, Police

Police Minister announces $45.5m Budget funding for Communication Centres

Legal aid thresholds raised; more repayments required

10 May 2005

Phil Goff, Justice

Legal representation for civil, family and criminal matters will be available to a wider range of lower income New Zealanders

Health Research gets biggest boost in a decade

10 May 2005

Steve Maharey, Research Science and Technology

The government will invest an additional $70 million over the next four years to fund priority health research and to strengthen the health research workforce

Sustainable Farming Fund has strong future

9 May 2005

Jim Sutton, Agriculture; Damien O’Connor, Rural Affairs

The popular Sustainable Farming Fund is gaining a secure future, now as part of the core funding of Vote Agriculture and Forestry

$2m for conservation work on seven Hauraki islands

7 May 2005

Chris Carter: Conservation

Important conservation projects on seven Hauraki Gulf islands are planned as part of a $2 million investment provided for in this year's Budget.

$136.9 million to ensure clean drinking water in NZ

5 May 2005

Pete Hodgson, Health; Chris Carter, Local Government

Drinking water systems across New Zealand stand to improve with the help of a new $136.9 million fund

$2.7m to double Fulbrights

4 May 2005

Steve Maharey; Research, Science and Technology

$2.7 million will be invested to double the number of Fulbright Scholarships available to young New Zealanders for post-graduate study in the United States

$4.45 million for carbon tax mitigation

4 May 2005

Pete Hodgson; Convenor, Ministerial Group Climate Change

Energy intensive small and medium size enterprises will get government help to take up energy saving technologies to offset the impact of the carbon tax.

Funding for Iwi stations equipment upgrade

4 May 2005

Parekura Horomia; Maori Affairs

Broadcasting equipment upgrades are the focus of $3.4million for Maori radio over two years

$4.4M for community TV and radio

3 May 2005

Steve Maharey; Broadcasting

$4.4 million will be invested in non-commercial radio and regional television over the next four years

$17 million for extra cataract operations

3 May 2005

Annette King; Health

An extra $17 million over the next three years will provide up to 7500 more cataract operations

$4.6 billion marks new era for Defence

2 May 2005

Mark Burton; Defence

The government has ushered in a new era of structured defence funding and management with a $4.6 billion 10-year package

Health takes leadership role in suicide prevention

27 April 2005

Jim Anderton; Associate Health

The government's suicide prevention strategy is shifting its focus from youth to all-ages, and the Ministry of Health will take over the helm from the Ministry of Youth Development

IT system to boost Foreign Affairs' consular work

25 April 2005

Phil Goff; Foreign Affairs and Trade

The Budget will deliver better help for New Zealanders in distress overseas with a new consular management information system

Paid parental leave to be extended to self-employed

24 April 2005

Ruth Dyson; Associate Labour

Legislation to extend New Zealand’s paid parental leave scheme to the self-employed will be introduced to Parliament this year

$12 million for services for children witnessing Family Violence

22 April 2005

Ruth Dyson; Child, Youth and Family

Services for child witnesses of family violence are getting a $12 million investment in Budget 2005

Funding security provided for Film NZ

21 April 2005

Jim Anderton; Economic Development

$578,000 for Film NZ for 2 years to help international production companies source NZ crew and resources.

Strengthening international education

19 April 2005

Trevor Mallard, Education

New Zealand's international education industry will get an extra spending boost of $21 million over the next four years.

5.4 million to promote contemporary music exports

19 April 2005;

Jim Anderton, Economic Development; Steve Maharey, Broadcasting

Investment of $5.4 million to support export growth of the New Zealand music industry.

Extra funding to help NZ prepare for the worst

19 April 2005;

George Hawkins, Civil Defence

The Government is to build on heightened awareness of New Zealand's vulnerability to natural and other disasters by providing $19 million in extra funding for civil defence in the coming Budget, including money to fund a major public education campaign.

$30.7million increase in government funding for special education

14 April 2005

David Benson-Pope, Associate Education

Funding for three key areas of special education will be increased by $30.7million over the next four years.

Income lift for thousands of GSF superannuitants

14 April 2005;

Michael Cullen, Finance

Thousands of Government Superannuation Fund recipients will have their incomes lifted as a result of proposed amendments to the GSF scheme – funding of $3.3 million in 2006-07, $3.5 million in 2007-08 and $3.4 million in 2008-09 and out years would be allocated in the coming budget

All schools to get electronic student tracking system

12 April 2005

David Benson-Pope, Associate Education

Budget 2005 allocates $4.8million for every intermediate and secondary school in the country to access a new electronic student enrolment system by the end of term one 2006. Primary schools will be included later.

300,000 New Zealanders to get relief from rates

12 April 2005

Helen Clark: Prime Minister

A 3rd-term Labour-led government will improve the rates rebate scheme for up to 300,000 low-income New Zealanders who'll be eligible to have up to $500 deducted from their annual rates bill. The government has budgeted $50m a year to implement the policy

Budget 2005 funds ICT package for under-fives

12 April 2005

Trevor Mallard, Education

Early childhood education is to gain from a $16 million package over the next four years for Foundations for Discovery, which promotes information and communications technology as an education tool.

$24.6m for core conservation work around New Zealand

10 April 2005

Chris Carter, Conservation

The Department of Conservation is to receive a $24.6m funding boost over four years in Budget 2005 to bolster its core work, such as saving the critically endangered kakapo.

$18M investment in Forest Industry Development Agenda

5 April 2005

Jim Anderton, Forestry

The Forest Industry Development Agenda means strategic growth for the industry’s future, with a government investment of $18.1 million to develop the industry

Anderton to promote excellence in wood design

29 March 2005

Jim Anderton, Forestry

The government will invest $2.26 million (GST excl. $2 million) over the next five financial years to help promote excellence in wood design in the construction sector.

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Budget 2005

Post-Budget Announcements

Budget Announcements

Pre-Budget announcements:

Opportunities for Sickness and Invalid's beneficiaries 12 May 2005 Steve Maharey, Social Development Helping more Sickness and Invalid's beneficiaries move into work is the aim a $27.7 million Budget investment

Opportunities for Sickness and Invalid's beneficiaries
12 May 2005

Steve Maharey, Social Development

Helping more Sickness and Invalid's beneficiaries move into work is the aim a $27.7 million Budget investment