Budget delivered, especially for working families

Steven Joyce has delivered his first budget. It will get dissected and analysed by media, and criticised by opposition parties, but it is likely to be a budget designed to tempt voters in election year.

Surplus: Treasury forecasts a $1.6bn surplus in 2017, climbing to $7.2bn in 2021.

Family Incomes Package

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.

Income tax: The $14,000 tax threshold is raised to $22,000 and the $48,000 threshold to $52,000. The government estimates this will mean $11 a week more for people in the lower threshold and up to $20 a week more for those in the higher band.

Family incomes: Working for Families tax credit rates for children under 16 go up. The eldest child credit is a maximum $101.98 a week and $91.25 for every subsequent child. But the point where tax credits start reducing kick in at a lower income level ($35,000 compared to $36,500 previously).

Independent earner tax credit: The credit for people earning from $24,000 to $48,000 and not receiving a benefit, superannuation or Working for Families is scrapped. It was worth up to $10 a week.

From 1 April 2018, the Package:

  • Increases the $14,000 income tax threshold to $22,000, and the $48,000 tax threshold to $52,000.
  • Discontinues the Independent Earner Tax Credit.
  • Increases the Family Tax Credit rates for young children to the level of those for children aged 16 to 18.
  • Increases the Accommodation Supplement maximum amounts to reflect 2016 rents and makes some changes to Accommodation Supplement areas.
  • Increases weekly Accommodation Benefit payments by up to $20 for eligible Student Allowance recipients.

Housing costs: The accommodation supplement goes up by an average $36 per week. More areas are eligible for the higher payments; for example, people living in tourist hotspots such as Queenstown, Wanaka and Tauranga, and in all Auckland suburbs, will join central Aucklanders in getting the top payments.

Family Incomes Package Fact Sheets – More information about the $2 billion Family Incomes Package.

Family Incomes Calculator –  How does the Family Incomes Package affect me?

Investing in a Growing Economy

A $935 million package through the Business Growth Agenda to keep building a sustainable growing economy.

  • $372.8 million for the second round of the Government’s Innovative New Zealand programme. It includes:
  • $203 million for Science and Innovation
  • $31.1 million for Economic Development
  • $132.1 million for Tertiary Education, Skills and Employment
  • $30.5 million to upgrade and modernise the fisheries management system.
  • $18.4 million to further strengthen the biosecurity system and protect our borders.
  • $4 million to progress New Zealand’s climate change work programme to meet Paris Agreement 2030 emissions targets.
  • $8.7 million for initiatives to support pay equity dispute resolution and Holidays Act compliance.

 

Public Services for a Growing Country

A $5.4 billion Operating and $1.4 billion Capital package to deliver better public services for a growing country.

The Government is allocating $7 billion in Budget 2017 to sustain and expand public services, including:

  • $3.9 billion in New Zealand’s Health Sector, including $1.76 billion in direct new money for District Health Boards, $1.54 billion for care and support workers plus increased investments in disability support services, ambulance services, pharmaceuticals, mental health services, elective surgery and primary health care.
  • $1.1 billion in New Zealand’s Education Sector, including $767 million for funding roll growth and demand, a $61 million increase in operational grant funding for schools, and $35 million in targeted additional funding for early childhood centres.
  • $1.2 billion for law and order, including for a 10 per cent increase in police staff numbers and funding to meet increased demand for justice, courts and corrections services, plus new initiatives in burglary prevention, reducing youth reoffending, and supporting at-risk prisoners.
  • $803 million for other social services, including $184.7 million for social housing services, $64.4 million for supporting people into employment, and $424.4 million for the new Ministry for Vulnerable Children Oranga Tamariki.

Budget 2017 includes $321 million in funding for fourteen cross-agency Social Investment initiatives that are designed to tackle long term social issues for vulnerable New Zealanders.

Mental health: $224m over four years for mental health services including for a fund to trial new addiction and mental health treatment approaches, $11.6m to help Corrections manage prisoners at risk of self harm.

Health: $3.9bn for health services bringing the total budget to $16.77bn in 2017/2018.

Social Investment

Budget 2017 continues this approach with a $321 million Social Investment Package.

Infrastructure for a Growing Economy

A $4 billion package of new capital investment to help build the public infrastructure needed to support growth.

The Government is allocating $4 billion in new capital infrastructure spend in Budget 2017 to build the necessary infrastructure for a growing economy, including:

  • $812 million for the reinstatement of State Highway One north and south of Kaikōura.
  • $450 million for rail infrastructure and rolling stock for KiwiRail’s rail freight business, $436 million for the first stage of Auckland’s City Rail Link, and $98.4 million for upgrades to Wellington’s commuter rail network.
  • $392.4 million for six new schools, two school expansions, 11 special education satellite units, and 305 additional classrooms nationwide.
  • $150 million in additional capital towards the new building programme for hospitals around New Zealand.
  • $576 million for the Defence Force for new equipment and the commencement of the upgrading of the Defence Estate.
  • $763.3 million for new prison capacity around New Zealand.
  • $100 million to expand the Government’s programme to release Crown land for housing development around the country.
  • $63 million for investing in new water storage infrastructure in regional New Zealand.

http://www.radionz.co.nz/news/national/331570/budget-2017-at-a-glance

 

38 Comments

  1. Corky

     /  May 25, 2017

    News Flash.

    Labour caucus has be spotted booking into ”Heartbreak Hotel.” Winston was so shocked by the budget he became tongue tied and started dribbling on.

    Congratulations to those on this site who foreshadowed some of the budget highlights.

    Listening to talkback, there are many happy people. Of course socialists are whining about the rich being looked after ..lol!

    • PDB

       /  May 25, 2017

      Not many places for Labour to go now…….will give them time to work further on their maths in how to deliver 100,000 new homes over 10 years.

      • Corky

         /  May 25, 2017

        Too true. Talk about being stuck down a one way street with no exit.

        • Blazer

           /  May 25, 2017

          landlords looked after with an increase in …..accom supplement…so much for the free market.

          • Corky

             /  May 25, 2017

            Join Zedd on talkback, Blazer.

          • Yes – I agree Blazer the Accommodation Supplement is a well meaning benefit but it has driven bad behaviours in the rental market place

  2. PDB

     /  May 25, 2017

    To be fair they have two possible streets which to follow;

    • Corky

       /  May 25, 2017

      It just shows even when the chips are down you always have choices. Lets hope Andy isn’t as myopic as me.

  3. Corky

     /  May 25, 2017

    What the….11.4 mill to National Socialist Radio to indoctrinate us into socialism. What a joke. Stevie Joyce has already done that.

  4. Zedd

     /  May 25, 2017

    what a total joke:

    ‘heres $10 now I’ll take $9 back.. but those over $120k get extra $34’

    tired, uninspired & BORING !

    I think Seymour was most honest; ‘worst budget speech.. ever’

    • Corky

       /  May 25, 2017

      Ring talkback, Zedd%. I’m sure you will be cut off quick smart. They don’t like nuts. Or maybe they do.. during comedy hour.

  5. David

     /  May 25, 2017

    Labour policies without Labour. Will go down well with a lot of voters.

    • Spot on David!

      How do you stop the country going socialist ….???

      Pre-emptive strike …. Go socialist …

    • PDB

       /  May 25, 2017

      Considering the far-right and far-left are still moaning post-budget then National are right in the middle of the political spectrum as they have been for some time.

      • If you call ACT “far-right” and the Greens “far-left” then your “middle” is pretty bloody narrow PDB … Post-Budget moaning is the expected, par-for-the-course activity in Westminster-style Parliamentary (so-called) democracies … Isn’t it?

        Labour says, “We have no faith in this government … even though they’re doing more-or-less exactly what we’d do if we were government and, what’s more, a good deal of their policy is simply ours tweaked, reworded and repackaged …”

        I predict the effect of this budget on the real issues of our day; housing, poverty, inequality, health, education and law-and-order will be approximately ZILCH … other than creating some employment – and immigration opportunities – in the building of inadequate numbers of new houses and grossly inadequate numbers of ‘social houses’, foreign investment and immigration opportunities in building prisons that clearly aren’t required other than by sentencing alterations (or abberations) – convictions are down, custodial sentences up – plus building new schools and hospitals … or renovating existing ones …

        This will constitute the so-called “growth” …

        Your Centre-Left National government just moved more Left … in most areas other than accommodation supplement gifts to landlords … absolutely essential to keep the “property ladder” mythology alive … to fuel the FIIRE economy …

        They really couldn’t help but mention ‘Socialist Housing’ but I see they’ve managed to avoid any mention of “pandering to Maori” … ?

  6. duperez

     /  May 25, 2017

    “11.4 mill to National Socialist Radio to indoctrinate us”? That sort of statement runs the risk of being called a vacuous knee-jerk political epithet.

    Seriously though, wrap a bow around it and call it a Saudi sheep deal.

    • Corky

       /  May 25, 2017

      Groan….

    • Conspiratoor

       /  May 25, 2017

      Dammit d, makes me uncomfortable when lefties start talking sense

  7. Blazer

     /  May 25, 2017
  8. Yes Pete, that is important. Are the gamblers going to win (the group who claim National are tired) or is it the rationalists who only bet on certainties? If this boring, then I am prepared to be bored as long as we improve quality of life by sensible steps that do not jeopardise our sacrifices over the last century? Expectations must be realistic and balanced by the contributions of the individual to the community!

    • Media seem to be the main ones wanting something dramatic from each budget, but they should in the main be very boring incremental nudges towards a better balance.

  9. Corky

     /  May 25, 2017

    New Zealand celebrated its successful budget with a successful rocket launch from Mahia Peninsula. National really are about rocket science.

    • Gezza

       /  May 25, 2017

      Awesome. Announce the next one is nuclear capable & we could get a supercarrier visit 👍

  10. Conspiratoor

     /  May 25, 2017

    More smoke and mirrors from the nats. Export income has fallen over the last three years yet the economy has grown. It doesn’t take a rocket scientist to work out why, or how future generations will be made to pay the piper

    • Corky

       /  May 25, 2017

      I didn’t expect you to show your true self until nearer the election. You disappoint me, bro.

      • Conspiratoor

         /  May 25, 2017

        A little uncharitable brother corks, its just the premature ejaculator in me

        • Corky

           /  May 25, 2017

          Next time wear protection so as not to foul your surroundings

  11. “A $4 billion package of new capital investment to help build the public infrastructure needed to support growth.”

    As an exercise, I’ve re-written this list in order from largest to smallest spend …

    1) $812 million for the reinstatement of State Highway One north and south of Kaikōura. REALLY!?

    2) $763.3 million for new prison capacity around New Zealand. REALLY!? New prison capacity is “Public infrastructure needed to support growth”!?

    3) $576 million for the Defence Force for new equipment and the commencement of the upgrading of the Defence Estate. REALLY!? Ditto!?

    4) $450 million for rail infrastructure and rolling stock for KiwiRail’s rail freight business, $436 million for the first stage of Auckland’s City Rail Link, and $98.4 million for upgrades to Wellington’s commuter rail network. REALLY!? Nothing about roads – other than a few km of Kaikoura which TOPS THE LIST – when road transport is clearly the private sector’s and their government’s favoured form of freight transport?

    5) $392.4 million for six new schools, two school expansions, 11 special education satellite units, and 305 additional classrooms nationwide.

    6) $150 million in additional capital towards the new building programme for hospitals around New Zealand. REALLY!? Isn’t this actually ‘catch-up’ health funding [partially or completely]?

    7) $100 million to expand the Government’s programme to release Crown land for housing development around the country. REALLY!? It COSTS $100 million to “release” Crown land? Won’t most of this Crown Land actually be SOLD? Is the INCOME from its sale calculated into this $100 million?

    8) $63 million for investing in new water storage infrastructure in regional New Zealand. REALLY!? The taxpayer’s going to pay $63mill for “water storage” while we give away 20 BILLION LITRES of water to overseas bottling companies for FREE? We could charge 10c per litre and get $2 billion dollars income … or 1c per litre and get $200 million income … (if my math is correct) …

    More in-depth analysis to follow …

    • PDB

       /  May 25, 2017

      PZ: “More in-depth analysis to follow …”

      Saying ‘REALLY!?’ after each budget announcement bullet point is hardly that………

      • It’s not a budget PDB … It’s a Fudget … REALLY!

        • PDB

           /  May 25, 2017

          Like your mates Blazer & Zedd if this same budget had been delivered by Labour you’d be gushing about it…….REALLY!

      • Corky

         /  May 25, 2017

        More bluster to follow…lots of words..lots of words…lots of words.

        • PDB

           /  May 25, 2017

          REALLY!?

          • Corky

             /  May 25, 2017

            Of course. Look at the length of Parti’s post.

          • You guys only have to shout “Cooooeeee!!!” and listen for the echo …

            I have to explain myself …

    • MaureenW

       /  May 25, 2017

      I like your posts BJ, they’re considered.

    • Correction … I think I read we’ll be giving away FREE 20 billion cubic metres of water …?