Budget 2015

Bill English Prime Minister Budget 2015 Finance

On 21 May, Finance Minister Bill English delivered the National-led Government’s seventh Budget.

It sets out the next steps in our economic programme and demonstrates National-led Government’s continuing focus on helping families.

Budget 2015 forecasts a return to surplus next year and increasing surpluses in subsequent years. It includes a $790 million package of measures aimed at reducing hardship among children living in some of New Zealand’s poorest families.

It confirms New Zealand has a strong, growing economy – we’re on track for average growth of 2.8 per cent a year over the next four years – and provides further evidence the Government’s programme is on the right track.

That strong growth is forecast to deliver another 150,000 new jobs over the next four years, which is on top of the 194,000 new jobs created since the start of 2011.

Average wages, which have increased by 15 per cent over the past five years, are also forecast to continue rising faster than inflation.

Through Budget 2015, the National-led Government will:

  • Return a $176 million surplus next year with larger surpluses in subsequent years.
  • Reduce government debt to less than 20 per cent of GDP by 2020/21 when we can resume contributions to the NZ Super Fund.
  • Invest $790 million over the next four years for package of measures aimed at helping children living in hardship, which includes:
    • Greater work obligations for parents on a benefit.
    • More childcare support for low-income families to help parents be in work, education or training.
    • An increase in benefits for families with children of $25 a week.
    • An increase in Working for Families payments to low-income families of $12.50 a week in most cases.
  • Invest $1.7 billion in health over the next four years, bringing the health budget to a record $15.9 billion in 2015/16.
  • Boost funding to education by $686.7 million over the next four years, bringing spending on early childhood, primary, and secondary education next year to a record $10.8 billion, while the tertiary spend will be $3.1 billion.
  • Continue our comprehensive programme to make housing more affordable.
  • Invest a further $360 million to deliver on our commitment to roll-out world-class internet connectivity for New Zealanders, bringing our total investment to $2 billion.
  • Deliver further cuts to ACC levies – they’re forecast to drop by around $500 million in 2016 and 2017, meaning we will have put $2 billion back in New Zealanders’ pockets since 2012.

Budget announcements

Rt Hon John Key, Prime Minister Supporting children in hardship focus of Budget The National-led Government's seventh Budget continues to support New Zealanders while responsibly managing the growing economy and the Government's finances, Prime Minister John Key says.

Hon Bill English, Minister of Finance, and Hon Anne Tolley, Minister for Social Development $790m package for children in poorest families Budget 2015 includes a $790 million package to reduce hardship among children in New Zealand's poorest families, as the next step in the Government's commitment to address the long-term drivers of deprivation.

Hon Bill English, Minister of Finance Help for families at heart of responsible Budget A package of measures aimed at reducing hardship among children in New Zealand's lowest-income households is at the heart of new spending announced in the Budget today, Finance Minister Bill English says.

Hon Bill English, Minister of Finance Budget Speech It's a privilege to present the National-led Government's seventh Budget. New Zealand has come through significant challenges and is now a more confident and resilient country than it was seven years ago. Successive Budgets have sought to put New Zealand on a track to surplus and debt reduction, and as a result the Government's books are in good shape.

Hon Bill English, Minister of Finance Budget 2015: At a Glance Budget 2015 delivers careful management of public spending, hand in hand with investment in public services.

Hon Bill English, Minister of Finance Books in good shape as surplus nears The Crown's books are in good shape and on track to surplus as the Government maintains its careful and responsible management of public spending, Finance Minister Bill English says.

Hon Bill English, Minister of Finance Share offer funds support education, UFB, rail Proceeds from the Government's share offer programme provide a further $939 million of new capital investment in Budget 2015 without the need to borrow more from overseas lenders, Finance Minister Bill English says.

Hon Bill English, Minister of Finance KiwiSaver $1,000 kick-start payment to cease People enrolling in KiwiSaver from 2pm today will no longer receive a $1,000 kick-start payment, Finance Minister Bill English says. The change does not affect existing KiwiSaver members.

Hon Bill English, Minister of Finance, and Hon Dr Jonathan Coleman, Minister of Health Budget 2015: Social bond to focus on mental health New Zealand’s first social bond will aim to empower people with mental illness and support their families, Finance Minister Bill English and Health Minister Jonathan Coleman say.

Hon Gerry Brownlee, Minister for Canterbury Earthquake Recovery Govt support for Canterbury rebuild now $16.5b An additional $107.8 million operating funding over the next four years is provided in Budget 2015 for the Canterbury rebuild, cementing the Government's commitment to the recovery effort.

Hon Gerry Brownlee, Minister of Defence Government continues to back NZ armed forces New operating funding of $264 million over four years for the New Zealand Defence Force continues the Government's commitment to deliver long-term funding certainty to our armed forces.

Hon Steven Joyce, Minister for Economic Development, and Hon Paul Goldsmith, Minister of Commerce and Consumer Affairs $12.1m for NZ Business Number The Budget provides further funding of $12.1 million for the New Zealand Business Number (NZBN) initiative, which provides a unique identifier for businesses to use in their interactions with government agencies and each other.

Hon Steven Joyce, Minister of Science and Innovation $25m funding for Regional Research Institutes Budget 2015 allows for up to $25 million over three years to support the establishment of new privately led Regional Research Institutes, Science and Innovation Minister Steven Joyce says.

Hon Steven Joyce, Minister for Tertiary Education, Skills and Employment Further $113m boost for tertiary education, skills Budget 2015 will provide a further $112.3 million of operating funding over four years and $1 million of capital funding to invest in knowledge and skills to grow New Zealand's economy, Tertiary Education, Skills and Employment Minister Steven Joyce says.

Hon Paula Bennett, Minister for Social Housing Commitment to improved social housing Putting tenants first and promoting housing independence is central to the Government's continued investment in social housing, Social Housing Minister Paula Bennett says.

Hon Dr Jonathan Coleman, Minister of Health Health investment increases to a record $15.9b New Zealand's health budget will reach a record $15.9 billion in the coming year, Health Minister Jonathan Coleman says.

Hon Dr Jonathan Coleman, Minister of Health $12.4m to extend bowel cancer screening pilot Budget 2015 invests $12.4 million to extend the Waitemata District Health Board's bowel cancer screening pilot to December 2017, Health Minister Jonathan Coleman says.

Hon Dr Jonathan Coleman, Minister of Health $76.1m more for palliative care and hospices An extra $76.1 million will be invested over four years to provide more hospice and palliative care services for New Zealanders, Health Minister Jonathan Coleman says.

Hon Amy Adams, Minister for Communications $360m boost for world-class internet connectivity Budget 2015 sets aside funding to deliver on the Government's commitment to roll out world-class internet connectivity for New Zealanders with the extension of its flagship broadband initiatives, Communications Minister Amy Adams says.

Hon Amy Adams, Minister of Justice $218.6m to continue improving public safety Budget 2015 provides an additional $218.6 million investment in the justice sector over the next four years, Justice Minister Amy Adams says.

Hon Christopher Finlayson, Minister in Charge of the NZSIS and Minister Responsible for the GCSB Funding boost for New Zealand security services The New Zealand Security Intelligence Service and the Government Communications Security Bureau will each receive new funding of $20 million over the next four years for essential security services, NZSIS and GCSB Minister Christopher Finlayson says.

Hon Simon Bridges, Minister of Transport Budget invests $249m extra in transport priorities The Government is delivering on its transport priorities by providing an additional $248.9 million for key transport projects over the next four years, Transport Minister Simon Bridges says.

Hon Simon Bridges, Minister of Transport, and Hon Craig Foss, Associate Minister of Transport Budget 2015: Funding boost enhances weather forecasting An operating funding increase that will grow to just over $5 million a year by 2018/19 will allow MetService to become more resilient, Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say.

Hon Hekia Parata, Minister of Education Education investment rises to $10.8b A Budget 2015 investment of $686.7 million will take total spending on early childhood, primary and secondary education in the coming year to $10.8 billion, Education Minister Hekia Parata says.

Hon Hekia Parata, Minister of Education Extra $8.2m for vulnerable students Almost 6,000 of New Zealand's most vulnerable students will benefit from an extra $8.2 million operating funding over the next four years for initiatives designed to increase their participation in the education system and lift achievement levels, Education Minister Hekia Parata says.

Hon Hekia Parata, Minister of Education, and Hon Nikki Kaye, Associate Minister of Education $373.9m spending on school infrastructure The Budget provides $373.9 million for school infrastructure, Education Minister Hekia Parata and Associate Education Minister Nikki Kaye say.

Hon Hekia Parata, Minister of Education Stepping up for kids with special needs The Government is investing an extra $62.9 million of operating funding over the next four years to better assist children with special education needs to learn and achieve, Education Minister Hekia Parata says.

Hon Anne Tolley, Minister for Social Development Budget 2015 supports at-risk children Budget 2015 supports the Government's plan to provide better care for vulnerable children and families across New Zealand, Social Development Minister Anne Tolley says.

Hon Anne Tolley, Minister for Social Development Extra support to help more people into work Budget 2015 helps more people into work and supports the Government's Better Public Services target of a 25 per cent reduction in the number of people receiving main benefits, Social Development Minister Anne Tolley says.

Hon Dr Nick Smith, Minister for the Environment $41.2m for resource management, water reform The Government is committing $41.2 million in Budget 2015 to deliver on its priorities for the environment, Environment Minister Dr Nick Smith says.

Hon Dr Nick Smith, Minister for Building and Housing Fund to facilitate Auckland housing development The Government has established a $52.2 million capital contingency fund in Budget 2015 to facilitate housing development on Crown-owned land in Auckland, Building and Housing Minister Dr Nick Smith says.

Hon Nathan Guy, Minister for Primary Industries, and Hon Nicky Wagner, Minister of Customs Border clearance levy to be introduced A new border clearance levy will help the Government to protect New Zealand from imported pests, diseases, illegal drugs and contraband and bring us in line with border approaches by other countries, Primary Industries Minister Nathan Guy and Customs Minister Nicky Wagner say.

Hon Nathan Guy, Minister for Primary Industries Funding boost for biosecurity at the border Biosecurity funding will be boosted by $24.9 million over four years, in addition to $2 million of capital funding, to increase our border capabilities, Primary Industries Minister Nathan Guy says.

Hon Nathan Guy, Minister for Primary Industries Animal welfare funding boost in Budget A $10 million package over four years will further strengthen New Zealand's animal welfare systems, Primary Industries Minister Nathan Guy says.

Hon Nathan Guy, Minister for Primary Industries Budget 2015: Driving primary sector export growth The Government will invest $7.5 million over two years in developing key skills and systems to help boost exports across the primary sector, Primary Industries Minister Nathan Guy says.

Hon Nathan Guy, Minister for Primary Industries Budget 2015: Funding boost for Irrigation Acceleration Fund Irrigation projects will receive a kick-start of $25 million in operating funding for five years from 2016/17 through the Irrigation Acceleration Fund (IAF), Primary Industries Minister Nathan Guy has announced today.

Hon Michael Woodhouse, Minister of Police New funding of $164m to support Police Budget 2015 builds on the Government's success in reducing crime and ensures New Zealand Police is fit for the future with new operating funding of $164 million over the next four years, Police Minister Michael Woodhouse says.

Hon Michael Woodhouse, Minister of Police Supporting the SFO in fighting serious fraud Budget 2015 will provide an extra $8.1 million of operating funding over the next four years for the Serious Fraud Office (SFO), demonstrating the Government's commitment to tackling serious fraud, SFO Minister Michael Woodhouse says.

Hon Todd McClay, Minister of Revenue Forgiving debt to encourage child support payments Budget 2015 includes changes to tackle child support debt and to encourage parents to pay what they owe for children for whom they are responsible, Revenue Minister Todd McClay says.

Hon Todd McClay, Minister of Revenue Minister welcomes $74 million for tax compliance Budget 2015 continues the Government’s investment in ensuring fairness in the tax system by pursuing those attempting to avoid paying tax, Revenue Minister Todd McClay says.

Hon Peseta Sam Lotu-Iiga, Minister for Pacific Peoples Pacific peoples benefit from Budget 2015 Pacific peoples will benefit from Budget 2015 through our government’s focus on supporting families and reducing hardship, Pacific Peoples Minister Peseta Sam Lotu-Iiga says.

Hon Maggie Barry, Minister of Conservation $11.2m to secure the future of the kiwi New Zealand's most famous bird, the kiwi, will receive $11.2 million of operating funding over the next four years in an effort to arrest its serious ongoing decline in the wild.

Hon Maggie Barry, Minister of Conservation Budget 2015: Saving our kiwi A fresh approach to saving the kiwi from extinction has been launched today thanks to a new $11.2 million investment from Budget 2015, Conservation Minister Maggie Barry says.

Hon Nicky Wagner, Minister for Disability Issues More support for disabled young people Disabled students with high needs will receive more support to transition from school to adult life, Disability Issues Minister Nicky Wagner says.

Hon Nicky Wagner, Minister of Customs Extra boost to Customs' border security Budget 2015 invests an extra $4.7 million of operating funding over four years to fund extra officers to screen departing international passengers for security threats such as terrorism and drugs, Customs Minister Nicky Wagner says.

Hon Nicky Wagner, Minister of Customs Budget 2015: Support to grow New Zealand exports Extra Budget funding will help exporters take full advantage of Free Trade Agreements (FTAs) and avoid the risk of costly delays at overseas borders, Customs Minister Nicky Wagner says.

Hon Craig Foss, Minister of Statistics Budget 2015: Funding boost to close data gap A Budget 2015 investment of over $1 million a year will close a critical gap in New Zealand’s financial information, Statistics Minister Craig Foss says.

Hon Te Ururoa Flavell, Minister for Whānau Ora $49.8m boost for Whānau Ora navigators New operating funding of $49.8 million over the next four years will further support Whānau Ora navigators to work with whānau, aiga and families, Whānau Ora Minister Te Ururoa Flavell says.

Hon Te Ururoa Flavell, Minister for Māori Development $35.3m invested to improve Māori housing Budget 2015 provides operating funding of $35.3 million over the next four years to improve housing outcomes for whānau Māori, Māori Development Minister Te Ururoa Flavell says.

Hon Te Ururoa Flavell, Minister for Māori Development $2.1m for rangatahi Māori suicide prevention The Budget provides $2.1 million of new operating funding for rangatahi Māori suicide prevention, Māori Development Minister Hon Te Ururoa Flavell says.

Hon Te Ururoa Flavell, Minister for Māori Development $12.8m for new Te Ture Whenua Māori Network The new Te Ture Whenua Māori Network, which will help Māori land owners improve the productivity of their land, will be supported by $12.8 million in the Budget, Māori Development Minister Te Ururoa Flavell says.

Hon Peter Dunne, Minister of Internal Affairs $52m to replace wharf at Chatham Islands A critical lifeline for one of New Zealand's most remote communities is to be completely rebuilt as a result of new funding in Budget 2015, Internal Affairs Minister Peter Dunne says.

Hon Peter Dunne, Minister of Internal Affairs Archives New Zealand to rebuild Christchurch facility The Budget confirms $6.1 million in operating funding over the next four years and $13 million of capital funding from the Future Investment Fund to rebuild Archives New Zealand’s Christchurch facility in Wigram, Internal Affairs Minister Peter Dunne says.

David Seymour, Under-Secretary to the Minister of Education Opportunities through Partnership Schools Budget 2015's funding of two additional Partnership Schools/Kura Hourua will give more young New Zealanders new options in education, Under-Secretary to the Minister of Education David Seymour says.

Pre-Budget announcements

17 May, 2015 Hon Bill English, Minister of Finance, and Hon Todd McClay, Minister of Revenue Budget 2015: Extra property tax measures The Government is taking extra steps to bolster the tax rules on property transactions – including those by overseas buyers - and to help Inland Revenue enforce them, Finance Minister Bill English and Revenue Minister Todd McClay say.

Rt Hon John Key, Prime Minister Budget 2015: Taxing property gains fairly The Budget will include extra measures to ensure that people buying and selling residential property for profit – including overseas buyers – pay their fair share of tax, Prime Minister John Key says.

14 May, 2015 Hon Michael Woodhouse, Minister of Immigration Budget 2015: $33m boost for Immigration Budget 2015 will invest $33 million of new operating expenditure over the next four years to boost the number of immigration officers at a time of record-breaking visitor numbers, Immigration Minister Michael Woodhouse says.

11 May, 2015 Hon Nikki Kaye, Minister for ACC Budget 2015: $500m of ACC levy cuts signalled Budget 2015 will signal ACC is on track to provide further levy cuts of around $375 million in 2016/17 and $120 million in 2017/18, says ACC Minister Nikki Kaye.

Hon Jo Goodhew, Associate Minister for Primary Industries Budget 2015: New Afforestation Grant Scheme The Government has today confirmed a multi-million dollar reboot of the popular Afforestation Grant Scheme (AGS), Associate Primary Industries Minister Jo Goodhew says.

7 May, 2015 Hon Peseta Sam Lotu-Iiga, Minister of Corrections Budget 2015: $6.5m boost to reduce reoffending The government will invest an additional $6.5 million in 2015/16 in both new and existing initiatives to help reduce prisoner reoffending, Corrections Minister Peseta Sam Lotu-Iiga says.

6 May, 2015 Hon Dr Jonathan Coleman, Minister of Health Budget 2015: $98m for more elective surgery An extra $98 million will be invested in Budget 2015 to provide more New Zealanders with timely elective surgery, and to improve the prevention and treatment of orthopaedic conditions, Health Minister Jonathan Coleman says.

5 May, 2015 Hon Michael Woodhouse, Minister for Workplace Relations and Safety Budget 2015: $32m for workplace compliance Investing $32 million of new operating expenditure in employment relations services over the next four years will help strengthen compliance with minimum employment standards, Workplace Relations and Safety Minister Michael Woodhouse says.

3 May, 2015 Rt Hon John Key, Prime Minister and Minister of Tourism Budget 2015: PM announces funding for Northland cycle trail Prime Minister and Minister of Tourism John Key has announced a further $3 million will be invested in 2015/16 to help fund the completion of Northland's Twin Coast Cycle Trail Pou Herenga Tai.

1 May, 2015 Hon Bill English, Minister of Finance Pre-Budget Speech to the Wellington Employers' Chamber of Commerce The Budget on 21st May will set out in detail the Treasury's revised economic and fiscal forecasts as well as the Government's decisions around new spending.

14 April, 2015 Hon Steven Joyce, Minister of Science and Innovation Budget 2015: $80m boost for R&D funding Innovative Kiwi businesses investing in research and development (R&D) will benefit from a boost in funding for Callaghan Innovation as part of Budget 2015, Science and Innovation Minister Steven Joyce announced today.

Hon Hekia Parata, Minister of Education, and Hon Nikki Kaye, Associate Minister of Education Budget to invest $244 million in schools Education Minister Hekia Parata and Associate Education Minister Nikki Kaye say next month's Budget will provide $244 million of funding for new schools, additional classrooms and expansions to existing schools.

Rt Hon John Key, Prime Minister Pre-Budget speech to Business New Zealand function Like all New Zealanders, we have a shared interest in building a strong economy that provides opportunities for Kiwi families and businesses to get ahead here in their own country.

11 February, 2015 Hon Bill English, Minister of Finance Finance Minister to present Budget on 21 May Budget 2015 will be presented on Thursday, 21 May, Finance Minister Bill English said today.