Budget 2025: Upward bound

Explore our infographic for the key Budget 2025 announcements.

It was well signalled that Budget 2025 would include some changes for KiwiSaver. While the overall impact of the changes should be increased KiwiSaver balances, there are both ups and downs for individuals.

Budget 2025 has given businesses a welcome boost to tax deductions for investing in assets. While speculation has been rife in the last week that the Budget would include full expensing of assets, for many the idea of such a change was absurd due to the corresponding fiscal cost.  

As part of a pre-Budget tax announcement, Minister of Finance Nicola Willis announced the Government is proposing to remove a tax roadblock to infrastructure investment.

The pressure for the Government’s Budget to deliver quick wins and headline-grabbing announcements is strong. But real economic progress doesn’t come from short-term fixes – it comes from playing the longer game.

As the Government aims to drive productivity and growth with this year’s Budget, digital enablement stands out as a powerful and underused lever to unlock the country’s full potential.

Aotearoa New Zealand, like many nations, has set ambitious climate goals not just to meet international commitments, but to protect its unique environment and economy for generations to come. These goals are embedded in our Emissions Reduction Plan (ERP). First published in 2022, it’s a legally required strategy for emissions reductions for the next 15 years, setting a pathway for Aotearoa New Zealand to meet its emissions reduction 2050 target.

Infrastructure is the backbone of any thriving economy, and New Zealand's challenges in this area are no secret. From ageing transport networks to the urgent need for climate-resilient infrastructure, the 2026 horizon presents both opportunities and hurdles. The question is: how can the Government ensure the best bang for its buck while staying true to its priorities?

There has been a clear signal from the Government that the cupboard is pretty bare when it comes to funding for new initiatives. The small additional operating allowance in Budget 2025 is unlikely to be splashed in the direction of the tax system - that was the job of Budget 2024.