Fielder.
I'm Chelsea Daniels and this is a breaking news episode of the front Page, a daily podcast presented by the New Zealand Herald officially dubbed the Growth Budget unofficially the NOBS Budget. Finance Minister Nikola Willis has unveiled when New Zealand's dollars are going to be spent from the outset. She promised no frills or access, saying for months is very little left in the kitty.
The economic outlook presented alongside this budget is a bright one after a tough few years. Growth, jobs and wages are set to rise. The government is not promising that today's budget will solve all New zealanders problems, but we do promise that the decisions we are taking now will sit our country up for a better future.
So what's been announced today well a big change in key we Saver, with the Government announcing it'll be harving its yearly maximum contribution rates for key we Saver to two hundred and sixty dollars, down from five hundred and twenty one. It also won't be extending it to those earning more than one hundred and eighty thousand dollars a year.
Default employer and employee contributions will rise from three to four percent, phased in over the next three years, although members can temporarily opt out, and sixteen and seventeen year olds will become eligible to receive a government contribution. There's also a new six point six billion dollar tax incentive for businesses, allowing twenty percent of a new assets value
to be deducted from annual taxable income. This will apply to assets like machinery, tools and equipment, covering their value on top of normal depreciation, and is believed to increase our GDP by one percent. In total, there will be twenty one point four billion dollars in savings over the next four years.
The majority of.
That is made up of the twelve point eight billion dollars saved by the controversial changes made to the pay Equity scheme. There are two hundred and twenty eight spending initiatives as part of this budget, but here are some of the highlights. Looking at health, seven billion dollars will be spent on health over the next four years. People will now be able to go a year without having to go to the doctor to get a repeat prescription,
up from the current maximum of three months. That will cost ninety one million dollars over the next four years and comes into effect in the first quarter of twenty twenty six. One billion will be invested in hospital facilities, including a new emergency department at Wellington Regional Hospital and a one hundred and twenty eight bed inpatient building in Nelson.
Onto.
Families Best Start will be income tested, diminishing four families with an income of seventy nine thousand dollars a year and cutting off entirely when a family earns more than ninety seven thousand dollars. The changes will affect families of children before April first next year. Those savings will see one hundred and forty two thousand families get an extra
fourteen dollars a fortnight on average. Under Working for Families changes, the government is also changing the abatement threshold for eligible families from forty two thousand, seven hundred dollars to forty four thousand, nine hundred dollars and the rate from twenty seven percent to twenty seven point five percent.
Let's look at education.
A boost to learning support makes up a large portion of new education spending two point five billion dollars worth over the next four years. All primary schools will be funded for a learning support coordinator from twenty twenty eight. A new multi studies subject area is being introduced for years eleven to thirteen, and the government's also revealed it'll be looking domestically and overseas in its marketing campaign to
bring in more teachers. Meanwhile, funding for private school subsidies will increase by eleven percent after staying the same for the last fifteen years.
And now let's look at benefits.
A big change to unemployment benefits, including job seeker cuts for teens. Many unemployed teenagers who do not study will not be eligible for the benefit from mid twenty twenty seven. The government says this group should be supported by their parents or guardians.
Not the taxpayer.
Eighteen and nineteen year olds who are unable to rely on parental support will be eligible for the money. So much of what was included in today's budget has been announced over the last month by the government. Here are
just some of those headline figures. More than two billion dollars was announced to replace the Defense Force's aging fleet of maritime helicopters, and a nine hundred and fifty seven million dollar boost over four years in defense, one hundred and forty million dollars to tackle student attendance, Nearly one hundred million dollars over the next four years to boost maths achievement in primary and intermediate schools.
One hundred and sixty three.
Million dollars over four years to expand and maintain urgent and after hours healthcare services nationwide. Five hundred and seventy seven million dollars over four years to support TV and film production. Six hundred million dollars in funding for improving rail reliability, upgrades and maintenance. Seven hundred and seventy four million dollars is allocated for the cases and improved redress
for survivors of abusing care. Two hundred and seventy five million dollars over four years will overhaul social services, including one hundred and ninety million dollars for a Social Investment Fund. That fund will invest in at least twenty initiatives, including parental support and preventing vulnerable people from entering state care.
An extra one point five million dollars has been committed annually to multi wardens, bringing government funding to two point seven million and thirty five million.
Dollars over four years.
Will go towards border protection to support sixty additional roles to tackle drug smuggling. That's it for this bonus budget episode of the Front Page. You can read more about today's stories and extensive news coverage at enzherld dot co dot nz. The Front Page is produced by Ethan Sills and Richard Martin, who.
Is also a sound engineer. I'm Chelsea Daniels.
Subscribe to the Front Page on iHeartRadio or wherever you get your podcasts, and tune in tomorrow as we'll be crunching the numbers with Herald Business Editor at Large Liam Dan