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The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax.

The consultation document, Better administration of individuals’ income tax, was released today by Finance Minister Steven Joyce and Revenue Minister Judith Collins.

Finance Minister Steven Joyce has welcomed the OECD’s latest review of the New Zealand economy as outlined in a report released today.

“The 2017 OECD Survey of New Zealand notes New Zealand’s strong economic growth off the back of a booming tourism market, strong net inward migration, solid construction activity and supportive monetary policy,” Mr Joyce says.

The report is also positive about New Zealand’s sound fiscal position with low public debt and a balanced budget.

GDP figures out this morning are a reminder of the importance of focusing on policies that create and sustain economic growth, Finance Minister Steven Joyce says.

New Zealand's GDP grew a slightly lower than expected 0.5 per cent in the March quarter, taking New Zealand's growth rate for the year to 3.0 per cent.

"Moderate GDP growth over the last six months is a reminder that every economic gain is hard-won in what is still a challenging international environment,” Mr Joyce says.

The Government has released the Major Projects Performance Report for the period November 2016 to March 2017, covering 55 complex major projects across government with a whole of life cost of $38.5 billion.

“The Investment System is continuing to mature with an increasing focus on realising the benefits of investment, and addressing risks before they turn into issues,” says Finance Minister Steven Joyce. “The portfolio as a whole continues to perform as expected.”

Finance Minister Steven Joyce has today welcomed the release of the Reserve Bank's consultation document on the use of Debt to Income ratios for mortgage borrowers as an additional macro-prudential tool.

"The document is a comprehensive summary of the pros and cons of adding Debt to Income ratios to the Reserve Bank's toolkit of regulatory options,” Mr Joyce says.

The Government and Auckland Council have agreed on Terms of Reference to establish a project to investigate smarter transport pricing in Auckland.

“Alongside our current multi-billion dollar transport investment in Auckland, we need to look at new ways of managing demand on our roads to help ease congestion. Smarter transport pricing has the potential to be part of the solution,” Finance Minister Steven Joyce says.

A renewed Policy Targets Agreement (PTA), which sets out specific targets for maintaining price stability has been signed by Finance Minister Steven Joyce and incoming Acting Reserve Bank Governor Grant Spencer.

“Earlier this year I announced that Deputy Reserve Bank Governor Grant Spencer will be appointed as the Acting Governor of the Bank for six months, following the expiry of current Governor Graeme Wheeler’s term on September 26 this year,” Mr Joyce says.

The Government accounts for the ten months to 30 April 2017 show a surplus of $2.5 billion, although about $1 billion of that is due to timing differences that are expected to reverse out in May, Finance Minister Steven Joyce says.

Finance Minister Steven Joyce has released the Productivity Commission’s terms of reference for their new inquiry into State sector productivity.

“As part of Budget 2017, I announced that the Government is asking the Productivity Commission to conduct an investigation into measuring and improving the productivity and efficiency of core public services in the State sector,” says Mr Joyce.

Earthquake Commission (EQC) levies will increase from 1 November to help rebuild its Natural Disaster Fund (NDF), which has been depleted following the Christchurch and Kaikōura earthquakes.

“EQC has provided huge support to New Zealanders following the Christchurch, Seddon, and Kaikōura earthquakes, but in the process it has exhausted its reserves,” Finance Minister Steven Joyce says.

The Government’s $2 billion per year Family Incomes Package will make changes to tax thresholds, Working for Families and the Accommodation Supplement to help Kiwi families get ahead, Finance Minister Steven Joyce says.

“It is important that Kiwi families directly share in the benefits of New Zealand’s economic growth,” Mr Joyce says. “The Family Incomes Package is carefully designed to especially assist low and middle income earners with young families and higher housing costs.”

The Government is allocating $4 billion in new capital spending as part of Budget 2017 as it builds the infrastructure for a growing economy, Finance Minister Steven Joyce says.

“This $4 billion investment is the single biggest investment of new capital in one Budget by any government in decades,” Mr Joyce says. “And it’s just the beginning. We have reserved a further $7 billion in new capital for the following three Budgets.”

The new capital spending in Budget 2017 includes:

The Government is allocating $7 billion over four years in Budget 2017 to sustain and expand public services in health, education, law and order and social development, as part of our commitment to deliver better public services for a growing country, Finance Minister Steven Joyce says.

“This investment reflects our commitment to meet the requirements of a growing population while also investing prudently in the core services Kiwis rely on in order to live successful independent lives,” Mr Joyce says.

The Government’s programme of responsible fiscal management is delivering for New Zealanders, with rising surpluses and falling debt improving our resilience and giving us more opportunities to invest in our future, Finance Minister Steven Joyce says.

“New Zealand’s steadily strengthening economy is allowing us to provide the public services and infrastructure needed for a growing country,” Mr Joyce says.

Mr Speaker

I move that the Appropriation (2017/18 Estimates) Bill be now read a second time.

It is an honour and a privilege to present my first budget to the public of New Zealand – the ninth of this National-led Government.

In doing so I acknowledge my predecessor and our new Prime Minister Bill English for his hard work and leadership in facing down the decade of deficits, bringing New Zealand successfully through the Global Financial Crisis, and responding to the impacts of the Canterbury earthquakes.

Budget 2017 is delivering for New Zealanders with significant investments in public services and infrastructure, and a Family Incomes Package that will help them get ahead, Finance Minister Steven Joyce says.

“Our economy is performing well and that’s a tribute to the hard work of New Zealanders,” Mr Joyce says. “We have experienced positive growth in all but one quarter over the last six years.

Finance Minister Steven Joyce has today released the full Government response to the Productivity Commission’s report on More Effective Social Services.

“The Government is well-aligned with the Productivity Commission’s recommended direction,” says Mr Joyce. “We have made a number of changes to our methods of investing in and evaluating social services since the Commission’s report was released.”

The Government accounts for the first nine months of the 2016/17 financial year showed a surplus of $1.5 billion, compared to a forecast surplus of $147 million at the Half Year Update, Finance Minister Steven Joyce says.

“Growing tax revenues coupled with lower than expected expenditure has resulted in the higher outturn,” Mr Joyce says.

“Tax revenue growth has softened a little in the last month, but over the nine months tax revenue is still up 7.3 per cent compared to the same period last year.”

Finance Minister Steven Joyce has welcomed the International Monetary Fund’s positive assessment of New Zealand’s economy and its financial system, as contained in two reports released this morning.

“The 2017 IMF report on the New Zealand economy endorses New Zealand’s strong economic plan. It notes New Zealand has enjoyed a solid expansion since 2011, and it expects further solid growth in the near to medium term,” Mr Joyce says.

Finance Minister Steven Joyce today announced the reappointment of Margaret Devlin, Edward Guy, and Carl Hansen to the National Infrastructure Advisory Board (NIAB).

NIAB provides independent expert advice to the National Infrastructure Unit (the Unit) and to the Minister of Finance.

Climate Change Minister Paula Bennett and Finance Minister Steven Joyce have asked the Productivity Commission to review how New Zealand can maximise the opportunities and minimise the costs and risks of transitioning to a lower carbon economy.

“This next step in our climate change work programme will enable us to properly assess the economic trade-offs that we’ll need to make to meet our ambitious 2030 Paris Agreement target,” says Mrs Bennett.

The Government has set a new medium-term fiscal target of reducing net debt to between 10 and 15 per cent of GDP by 2025, Finance Minister Steven Joyce says.

“We have made great progress in our immediate target of reducing net debt to around 20 per cent of GDP by 2020,” Mr Joyce says. “Net debt is expected to be at 24.3 per cent of GDP by the end of this financial year. Now it’s time to set a new target for net debt out to the middle of the next decade.”

The Government will allocate $11 billion in new capital infrastructure over the next four Budgets in addition to spending already included in agency baselines, Finance Minister Steven Joyce says.

“We are growing faster than we have for a long time and adding more jobs all over the country,” Mr Joyce says. “That’s a great thing, but to keep growing, it’s important we keep investing in the infrastructure that enables that growth.”

Good afternoon.

Thank you John and Peter and the Wellington Chamber of Commerce.

Special guests, Ladies and Gentlemen. It’s a pleasure to be here.

Budget 2017 is now just under one month away and preparations are continuing.

I have four key areas I am thinking about in getting ready for this year’s Budget.

First, delivering better public services for a growing country – providing all New Zealanders with the opportunity to lead successful independent lives.