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Why are changes being made?

1.  Low income one-child family

Lisa is a sole parent. She earns $30,000 a year and has a 10-year-old child. She currently receives $148.04 a week in Working for Families tax credits. From 1 April 2012, this will go up to $152.64 a week – an increase of $4.60. 

2.  High income four-child family

Budget 2011 has freed up $5.2 billion out to 2014/15 – including $700 million in 2011/12 - to invest in improving frontline public services and reducing debt, Finance Minister Bill English says.

“At a time when the Government's finances are constrained as it deals with ongoing costs from the global financial crisis and two Canterbury earthquakes, these savings provide significant funding for better frontline services in areas like health, education, and law and order,” Mr English says.

The Government expects the wider state service to find $980 million in savings over three years to go towards improving frontline public services and reducing debt, Finance Minister Bill English says.

Agencies will be required to find the savings from 1 July 2012. They will comprise two main parts:

Documents released today show the Government has taken a balanced and responsible approach in providing a back-up financial support package for AMI policyholders, Finance Minister Bill English says. 

Treasury today proactively released a range of documents on its website relating to the Government's $500 million back-up support package, which was announced on 7 April.

Improved performance by ACC in the Non-Earners’ Account has freed up $638 million of taxpayer funding over the next four years, Finance Minister Bill English and ACC Minister Nick Smith announced today.

The Budget next week will set a credible path back to budget surplus, after Government financial statements today confirmed a $10.2 billion operating deficit before gains and losses for the nine months to 31 March, Finance Minister Bill English says.

The deficit includes the Earthquake Commission’s $1.5 billion estimated share of costs for the February earthquake in Christchurch. However, it does not include the Government’s support package for AMI policyholders, which was signed after 31 March.

The Government’s Review of Expenditure on Policy Advice identifies several significant issues with the cost, quality and management of policy advice and makes 36 recommendations to address them.

The review, announced last year, will help the Government’s wider programme to control growth in the costs of public sector back office functions and deliver better frontline public services, Finance Minister Bill English says.

However, it does not recommend specific cuts to policy advice spending.

The Government agrees with the OECD that New Zealand should return to budget surplus as soon as possible and the Budget next month will take steps in that direction, Finance Minister Bill English says.

“In its economic survey of New Zealand out today, the OECD points out that achieving faster economic growth requires progress across a broad policy front,” Mr English says.

A report benchmarking the administrative and support functions of state sector agencies shows there is room for further savings that can go towards improving frontline public services, Finance Minister Bill English says.

Treasury today released the results of its benchmarking report, which concludes government agencies could save more than $230 million a year through greater sharing, standardisation and automation of back office processes and systems.

The Government will spend about $8.5 billion over the next few years to help the rebuilding of Christchurch, Finance Minister Bill English said today.

“The earthquakes do not fundamentally change our economic situation or the Government’s programme,” he said in a speech to the Wellington Employers’ Chamber of Commerce. “They simply make the task of returning to surplus a little more difficult.”

Good afternoon and thank you to the Wellington Employers’ Chamber of Commerce for inviting me back to speak to you this year.

To say that a lot has happened since I spoke to you 12 months ago is something of an understatement.

Throughout 2010, aftershocks from the global financial crisis continued to ripple around the world.

Deputy Prime Minister and Finance Minister Bill English leaves for China on Wednesday, where he will attend the annual Bo’ao Forum for Asia and meet senior government and business leaders in Beijing and Shanghai.

The Bo’oa Forum, to be hosted by Chinese President Hu Jintao on the southern Chinese island of Hainan, brings together government, business and academic leaders from across Asia. It aims to promote regional economic integration.

The Government has announced it will provide a back up financial support package for AMI Insurance to give policyholders certainty and to ensure an orderly rebuild of Christchurch in the aftermath of the two earthquakes.

The support package would be called on only as a last resort if AMI’s own reserves have been exhausted – unless the Crown believes it is in the public interest to take control sooner, Finance Minister Bill English said today.

04 April 2011. Finance Minister Bill English talks about the importance of the first of April in budget terms as numerous changes go into effect.

A significant impact from the second Canterbury earthquake and revisions to expected Crown recoveries under the Retail Deposit Guarantee Scheme are reflected in the Government’s accounts for the eight months to February.

“The accounts do not include the full costs of the earthquake,” Finance Minister Bill English says. “But they do include an estimate of the Earthquake Commission’s net cost of $1.5 billion.

The new Productivity Commission's first two inquiries will be into housing affordability and international freight services – two areas that affect New Zealand's international competitiveness, Finance Minister Bill English and Regulatory Reform Minister Rodney Hide say.

The Ministers also announced the appointments of Sally Davenport and Graham Scott as commissioners, working alongside New Zealand Productivity Commission chairman Murray Sherwin.

Ministers will initially refer two topics for inquiry to the Productivity Commission:

Good morning and thank you to IPANZ for the opportunity to speak today.

Public policy and public management are challenging tasks at the best of times – much more difficult than commentators, business people and the public often think.

It is this challenge that attracts so many capable, motivated New Zealanders to every level of the public service.

Change in the public service will need to pick up momentum to meet the Government's goals of high-quality frontline services with little extra money, Finance Minister Bill English says.

"Getting on top of our fiscal position, and rebalancing the economy, necessarily means the Government being a smaller part of the economy than it is now," Mr English said in a speech to the Institute of Public Administration New Zealand (IPANZ) in Wellington today.

The Government has put in place several tax relief measures to help Christchurch residents and businesses trying to get back on their feet after last month’s earthquake, Finance Minister Bill English and Revenue Minister Peter Dunne announced today.

“With the end of the tax year rapidly approaching, businesses and employers in Christchurch and around New Zealand need some certainty about the tax issues arising from the Canterbury earthquakes,” Mr English said.

Statistics issued today confirm the economy was subdued in the second half of 2010, although there are reasons to be optimistic about the outlook for the coming year, Finance Minister Bill English says.

“Gross domestic product figures for the December quarter largely confirm what other indicators have been telling us.

“They reflect slower domestic growth as New Zealanders increased their savings and paid down debt, as well as the significant impact of the first Canterbury earthquake,” Mr English says.

The second round of Budget 2010 tax changes will help make businesses more competitive and further rebalance the economy towards savings and exports, Finance Minister Bill English and Revenue Minister Peter Dunne say.

"Cutting the company tax rate will make New Zealand more competitive and increase incentives for businesses to reinvest earnings back into jobs and growth," Mr English says.

18 March. Finance Minister Bill English discusses the impact of the latest Christchurch earthquake on the Government's budget, especially given the commitment of the Government to supporting earthquake victims and rebuilding the city.

Good afternoon. We’re all familiar with the events in Christchurch last month. Few words come close to conveying the scale and impact of that disaster.

Can I also acknowledge the horrific events in Japan last week - they show there is always someone worse off than ourselves. More than most, we understand what the Japanese people are going through.

Here at home, helping support and rebuild Christchurch is among the most important things the Government will do this year and into the future.