Budget 2025: Attracting investment
For Kiwi businesses, Investment Boost is a new tax incentive to encourage investment in assets to increase productivity. The incentive applies only to new assets and new-to-New Zealand assets, i.e.• New assets sourced in New Zealand.• New and second-hand assets sourced from overseas.Second-hand assets from overseas are eligible because these increase the capital stock, whereas […]
Budget 2025: Attracting talent
$10m is earmarked to help start-ups and unlisted companies recruit talent, deferring the tax liability arising on employee share scheme (ESS) benefits until a liquidity event occurs to fund the tax on income. The boundaries for eligibility are as yet undefined. We’ll keep you posted. For migrants and returning New Zealanders, possible ‘revenue account’ and […]
Budget 2025: Changes to KiwiSaver
KiwiSaver employee and employer default contribution rates rise from 3% to 3.5% starting 1 April 2026, with a further increase to 4% from 1 April 2028. From 1 February 2026, KiwiSaver members can apply for a rate reduction to 3% (which will then also apply to the employer contribution). The period of the rate reduction […]
Budget 2025: What about my business?
For retail businesses, it remains to be seen whether the changes will bolster consumer confidence to a point where the retail sector can rebound the way it’s been hoping to. Investment Boost and associated measures will bring some welcome tax relief and encourage spending on business assets to boost productivity. With tax incentives, a key […]
Budget 2025: Cost of living, families and social support
Cost of living support is targeted in specific areas, expanding some, shrinking others. Families receiving Working for Families support will see a bit extra for their fortnightly groceries. Budget 2025 lifts the Working for Families abatement threshold from $42,700 to $44,900 and the abatement rate from 27% to 27.5%. This is offset against savings from […]
Budget 2025: Health, education and defence
Budget 2025 allocates $6.8b of capital expenditure for hospitals, schools, rail and roads, and defence hardware and infrastructure. In health, just under $6b will fund hospital and specialist services and expand urgent and after-hours healthcare. An $886m education package supports children with additional learning needs, strengthens school attendance, and funds maths intervention teachers and maths […]
