Prime Minister Christopher Luxon says Budget 2024 delivers on the Government’s promises, with savings across the public sector being reinvested in frontline services and meaningful tax reductions to support hard-working Kiwis.

"The tax package in Budget 2024 is fully funded from savings and other revenue measures - meaning it will not add to debt and inflation.

"But it will allow hard-working New Zealanders to keep more of what they earn. Tax relief will give the average income household up to $102 per fortnight, plus FamilyBoost childcare payments of up to $150 for eligible families.

“Budget 2024 also delivers a significant funding boost for the health system and targeted new investment in other essential frontline services including education and law and order."

Investments

Budget 2024 sets out the Government’s plan to rebuild the economy, ease the cost of living, deliver better health and education services and restore law and order, says Finance Minister Nicola Willis.

“This is a fiscally responsible Budget that delivers on key coalition Government commitments.”

-Tax relief for the squeezed middle in line with the National Party tax plan.

-Targeted investments in public services including a $16.68 billion multi-year funding boost for health services, $2.93 billion for education and $2.92 billion to restore law and order.

-Enduring savings of $23 billion over four years to responsibly fund tax relief and provide an additional boost to priority frontline services.

-A $7 billion boost to capital funding, via a top-up to the Multi-Year Capital Allowance, so we can invest in the infrastructure needed for future growth and resilience.

-Fiscal discipline to get back to surplus and lower government debt.

"This Budget won’t fix all of New Zealand’s economic challenges on its own and there is much more to do, but it does show what is possible with care and discipline," says Willis.

"Our approach means New Zealanders can look forward with confidence knowing the Government is establishing the foundations for productive growth."

Photo: RNZ.

Tax reliefs

Budget 2024 delivers overdue tax relief to 3.5 million New Zealanders so they can keep more of what they earn.

-Tax relief as set out in the National Party’s 2023 tax plan.

-From 31 July this year average income households receive tax relief of up to $102 a fortnight and eligible families receive a FamilyBoost childcare payment of up to $150 per fortnight.

-Households with children benefit on average by $78 per fortnight ($2028 a year).

-Working-age New Zealanders benefit on average by $32 a fortnight ($832 a year).

-$3.7 billion annual cost of the tax package is fully funded through specified savings and revenue initiatives.

-Fiscally neutral package means the Government is not borrowing to fund this tax relief and it won’t add to inflationary pressure.

"On 31 July this year, New Zealanders will experience tax relief for the first time in 14 years. This relief is well overdue and will help hardworking Kiwis who have endured a prolonged cost of living crisis," Finance Minister Nicola Willis says. 

Rebuilding the New Zealand economy

Budget 2024 restores discipline to spending to get the books back in order, Finance Minister Nicola Willis says.

-Operating allowance for Budget 2024 lowered to $3.2 billion: the lowest operating allowance since Budget 2018.

-Future operating allowances lowered to $2.4 billion.

-The Multi-Year Capital Allowance receives a $7 billion top-up, with new infrastructure investments in this Budget, and $7.5 billion remaining to fund high-priority investments over the forecast period.

-Tax relief is fully funded from savings and revenue initiatives, so the Government is not borrowing to fund this tax relief and it won’t add to inflation pressure.

-The operating balance (before gains and losses) is forecast to deliver a $1.5 billion surplus in 2027/28.

"In recent years, Government spending has ballooned, and debt has risen sharply. A prolonged period of high inflation has led to a cost-of-living crisis, with high interest rates contributing to a deeper and more persistent downturn than previously forecast."

Frontline health services and workers

Health will get a significant funding boost of $16.68 billion across three Budgets as part of our plan to invest in frontline services such as emergency departments, primary care, medicines and public health to ensure New Zealanders can get the healthcare they deserve, Health Minister Dr Shane Reti says.

Health Minister Dr Shane Reti.

"Our Government has set ambitious targets for the health sector. We are committed to improving the frontline health services that New Zealanders rely on, with shorter wait times for assessment and treatment,"s ays Reit.

"We want the health sector to plan for the future with confidence, knowing our Government will always prioritise increased investment for the services it delivers."

New health investments in Budget 2024 over four years include (operating and capital):

-$3.44 billion for hospital and specialist services through Health New Zealand.

-$2.12 billion for primary, community and public health through Health New Zealand.

-$1.77 billion for Pharmac to fix the shortfall left by Labour and ensure Kiwis can access the medicines they need.

-$31.2 million to gradually extend free breast screening to an additional 60,000 women each year.

-$31 million for increased security at emergency departments, to ensure safety for patients and staff.

-$22 million to train 25 more doctors each year.

-$24 million for free mental health counselling services through Gumboot Friday.

-$9.7 million to establish a National Mental Health and Addiction Community Sector Innovation Fund.

$2.93 billion investment to lift educational achievement

The coalition Government is boosting education spending by $2.93 billion over the next four years to improve student outcomes, Education Minister Erica Stanford says.

"The investment includes extra funding for new classrooms, additional teacher support and early childhood education," says Stanford.

"It also includes previously announced additional funding for structured literacy, more teachers, the school lunches programme, charter schools and period products in schools."

The additional funding increases the total investment in schools and early childhood education by 3.6 per cent in the coming year to $19.1 billion.

Savings of $429 million within Vote Education have been redirected to higher priority frontline areas within education.

Key investments made in the Budget include an additional:

-$1.48 billion for education property.

-$478 million operating funding for Ka Ora Ka Ako to continue the Healthy School Lunches Programme for two more years, including $8 million to introduce a targeted early childhood food programme.

-$199 million over four years including a 3 percent increase for Schools Equity and Isolation Index based components and a 2.5 percent increase for the remaining components of school operating grants.

-$191 million over four years for a cost adjustment of 2 percent to the Early Childhood Education (ECE) Subsidy for under two-year-olds, ECE Subsidy for two-year-olds and over, 20 Hours ECE, and Equity Funding.

-$163 million over four years to support Digital Services in schools, including cyber security and equipment replacement.

-$153 million over four years to establish Charter Schools | Kura Hourua.

-$67 million over four years for the implementation of structured literacy in all state primary schools.

-$53 million over four years for teacher supply, retention, and attraction initiatives.

-$45 million over four years in funding for schools to support the rapid increase of ESOL students (English for Speakers of Other Languages).

-$15 million over four years to increase funding for the School High Health Needs Fund.

-$13 million over four years to provide sustainable funding to Playcentre.

-$14 million over four years as ongoing funding for Ikura Period products in schools.

-$32 million for Holidays Act Remediation for School Employees, based on an updated estimate of liability.

Police on the front line

A focus on supporting frontline Police in this year’s Budget will keep our communities safer, Police Minister Mark Mitchell says.

"Budget 2024 provides $651 million extra over four years in critical support for frontline Policing, including the reinvestment of $55.1 million in savings."

The investment includes:

-$226.1 million to deliver an extra 500 police officers.

-$424.9 million to support frontline policing including $242.2 million to boost police pay $62.7 million for frontline police vehicles and maritime capability.

:As part of our savings programme, police identified $55 million of savings in back office functions. This amount has been automatically reinvested back into frontline police services," says Mitchell.

Police Minister Mark Mitchell.

"Last year alone, police responded to over 1.2 million events. So I am pleased new specialist vehicles are coming for Armed Offenders Squads, new utes for dog handlers and rural cops, as well as patrol cars for our beat police officers.

"Funding will also include a new boat for the Auckland Police Maritime Unit which is essential to keeping people safe on Auckland’s busy waterways.

"Our frontline Police officers do an incredible job both on the ground and on the water. They do this work in a wide range of environments and need specialised vehicles. These new vehicles will enable our Police to disrupt crime wherever it is occurring.

"We’re cracking down on crime and ensuring there are real consequences for offenders. We’re bringing in tough new laws to go after gangs and tackling youth offending and ram raiders.

"And we are supporting remand prisoners to turn their lives around by delivering more rehabilitation and reintegration support. Because under our Government, victims - not offenders - are the priority of the justice system."

Fixing New Zealand’s infrastructure deficit

Budget 2024 lays the foundations for a better performing infrastructure system, with investments to ensure Kiwis spend less time waiting in traffic, that improve our climate resilience, and in modern classrooms that support our kids to achieve at school, Infrastructure Minister Chris Bishop says.

Chris Bishop.

Key infrastructure investments in Budget 2024 build on the existing capital pipeline, including programmes already in delivery:

-$1.2 billion for the Regional Infrastructure Fund to support our regional economies to grow. This includes an initial investment of $200 million into flood resilience infrastructure.

-$2.68 billion in roads, rail, and public transport to unlock economic growth and enable Kiwis and freight to get to where they want to go quickly and safely, including 17 new Roads of National Significance and funding for the Rail Network Investment Programme. This Budget boosts the Land Transport Fund with an additional $1 billion in capital funding, over that previously signalled, to accelerate construction of the Roads of National Significance.

-$1.5 billion in school and kura property so kids can learn in safe, warm and dry schools, and the school property portfolio can expand to accommodate more students.

-$2.1 billion for law and order including funding for an 810-bed expansion of Waikeria Prison to support stronger sentencing and capital costs associated with delivering 500 new police officers.

-$408 million to upgrade Defence equipment and infrastructure.

-$140 million to deliver 1,500 new social housing places.

-$103 million to meet emerging cost-pressures in Health NZ’s infrastructure pipeline, which includes $11.6 billion of investments over the forecast period.

The Treasury graph below shows the significant increase in infrastructure spending over time:

$1.1 billion investment to support disabled people

Critical support services that improve the lives of disabled people, their families, and those who care for them will receive significant investment through Budget 2024.

"The coalition Government wants the best outcomes for the disability community, which is why we are prioritising the essential frontline services they rely on," says Disability Issues Minister Louise Upston.

"Budget 2024 will provide an additional $1.1 billion over five years to address demand and cost pressures on the support services funded by the Ministry of Disabled People – Whaikaha.

"This includes an $80 million pre-Budget commitment to see the Ministry through to the end of the 2023/24 financial year, and $322 million for 2024/25.

"This substantial investment will ensure disabled people who are eligible can access the essential services, equipment, or support they need.

"An independent review that is now underway into the disability support system will also help the Government improve the long-term financial sustainability of these services and ensure taxpayers are getting value.

"It’s important we provide disabled Kiwis with ongoing support that meets their needs and helps them lead a good life."

500 more Police to improve public safety

Frontline Police numbers will be increased by 500 officers by the end of 2025 to help reduce crime and improve public safety, Associate Police Minister Casey Costello says.

"We are serious about restoring law and order and that starts with having more Police on the beat to deter crime and catch offenders."

Budget 2024 includes $191 million over four years to fund the recruitment and retention of 500 more sworn Police officers and $34.6 million in capital to ensure that they are properly equipped to do their jobs.

"The $191 million is for recruitment, training and remuneration along with other operating costs.

"Police officers also need to have the right tools to do their jobs and the $34.6 million capital provides for vehicles, equipment such as body armour and police station investment.

"The 500 extra police officers in the first two years of our Government is a priority in the New Zealand First-National coalition agreement and this funding boost will help us deliver on our commitment to law and order.

"It is expected that the funding will go towards increasing police presence in communities, improving responsiveness to emergency calls, addressing serious youth crime, and preventing gang intimidation."

When the new Government was sworn into office on November 27, 2023, there were 10,211 sworn officers. The extra funding is to increase Police constabulary numbers to 10,711.

"This is a significant and real increase and comes on top of the extra money for Police cost pressures announced in today’s Budget by Police Minister Mark Mitchell.

"Police officers do a great job, and the Government is backing the Police with more funding, more officers and the tools to keep the public safe."

Investing in transport for growth 

Budget 2024 confirms a $2.68 billion investment in roads, rail, and public transport to unlock economic growth and enable Kiwis and freight to get to where they want to go quickly and safely, Transport Minister Simeon Brown says.

This funding includes a billion-dollar increase over that signalled during the consultation on the GPS on land transport. This funding has been secured to accelerate the delivery of priority projects including the Roads of National Significance.

"Investing in transport infrastructure is critical to our plan to rebuild the economy so we can lift incomes and afford the health, education, and other frontline services New Zealanders depend upon."

Other transport investments in Budget 2024 include: 

1.0 billion to accelerate the delivery of the Roads of National Significance and major public transport projects.

-$939.3 million to repair roads damaged by last year’s severe weather events in the North Island.

-$266.9 million to upgrade and maintain the metropolitan rail networks in Auckland and Wellington.

-$200 million to support KiwiRail to carry out maintenance and renewals on the national rail network.

-$10 million for Airways New Zealand to complete the minimum operating network of Ground Based Navigation Aids.

-$44 million to support the Civil Aviation Authority to carry out core functions while fee and levy rates are under review.

-$23.1 million to support critical frontline rescue services to respond to severe weather events and emergencies.

-$63.6 million to support Surf Life Saving New Zealand and Coastguard New Zealand.

-refocusing $59.7 million of existing funding over the next four years towards decarbonising the bus fleet, including zero emissions buses and charging infrastructure, and improvements to bus driver safety and working environments.

This investment builds upon the $20.7 billion in funding already outlined this year in the draft GPS on land transport and Roads of Regional Significance programme to boost investment in roading, rail, and public transport to ensure Kiwis can get where they need to go quickly and safely, including:

17 Roads of National Significance and major public transport projects .

-$500 million for a Pothole Prevention Fund

-Supporting the procurement of new trains for the Wellington-Wairarapa and Wellington-Manawatū lines.

-10 Roads of Regional Significance.

"Budget 2024 delivers a clear pipeline of transport infrastructure investment which will support our plan to rebuild the New Zealand economy," says Brown.