Budget 2024 at a glance: What you need to know

Note: This article originally stated that the government would generate $1.195 billion over four years through an increase in the garbage collection fee. Instead, the number refers to the total amount expected from the levy at that time, including money earmarked for local governments.

Data are annual averages unless otherwise stated. This is not an exhaustive list, but is intended to cover key expenses and savings.

Taxes and economics (spending an average of $3.68 billion more annually on new initiatives)

• $2.57 billion in tax cuts through bracket adjustments unchanged from the amount set by National in the election campaign
• $155 million in changes to independent earner tax credit eligibility, in line with National’s election campaign
• $182 million for a $25-a-week working family tax credit, in line with National’s election campaign (the change in tax credit thresholds was abandoned during coalition negotiations)
• $729 million to restore the deductibility of interest on residential rental properties
• $45 million to adjust the bright-line test

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Announced before the budget

Savings and new financing ($3.71 billion in additional revenue per year)

Please note that climate funding and closure of work programs include savings found in the mini-budget in December.

• Total baseline savings of $1.215 billion achieved by government departments and agencies that did not have their priorities changed
• $775 million to close out previous programs
• $597 million from the Climate Emergency Response Fund, paid through the ETS
• $578 million in depreciation of commercial buildings
• $229.7 million over four years through savings and an expansion of the garbage levy to cover a broader range of projects (with half of total levy revenue still going to local governments)
• $462.8 million within four years of scrapping Wellington Science City project
• $133 million in immigration fees, including $261.9 million over four years from increased international visitor fees
• $47 million from taxes on online casino operators
• $178 million in savings over four years from the Energy Efficiency and Conservation Authority, including ending subsidies for new hot water heaters under Warmer Kiwi Homes, energy efficiency measures, an LED lighting program and community outreach for hard-to-reach households
• $220 million for a free transfer from the first year to the last year of studies
• $147 million to fight tax evasion
• $116.1 million over four years from restoring the $5 prescription fee for people ages 14-64, consisting of $269 million in total savings over four years and $153.5 million over four years thanks to the increased use of this policy.
• $164.5 million was returned from emergency funds to assess the agricultural greenhouse gas emissions program over four years
• $5.55 million over four years less spent on NZ Film Commission, NZ Symphony Orchestra and Nga Taonga Sound and Vision
• $5.72 million over four years from the abolition of the Consumer Advocates Council and $38.27 million over four years from the reduction of other energy programs, such as the Community Renewable Energy Fund
• $300,000 to roll back the Circular Economy and Biosecurity Strategy

Announced before the budget

Education ($1.01 billion)

• $1.48 billion over four years for the kura kaupapa school and estate
• $199.5 million over four years for school operating grants
• $191 million over four years for ECE grants
• $163 million to maintain school IT infrastructure over four years
• $256 million over four years to increase subsidies for higher education and supplier training by 2.5%
• Student loan interest rates for foreign borrowers will increase from 3.9% to 4.9% from April 1, 2025.

Announced before the budget

Health, disability and mental health

Health NZ Te Whatu Ora will receive $16.68 billion in new funding across three budgets:

• $3.44 billion over four years for Health NZ hospitals and specialist services
• $2.12 billion over four years for primary, community and public health
• $1.77 billion over four years to maintain Pharmac funding
• $1.1 billion over five years to address demand and cost pressures for Whaikaha Ministry of Disability People
• $31.2 million over four years to extend free breast screening
• $30.84 million over four years to increase ED security
• $22 million over four years to train 25 more doctors per year
• $9.7 million over four years to establish a National Social Sector Innovation Fund for Mental Health and Addictions

Announced before the budget

Transportation ($2.68 billion over four years)

• $1 billion over four years to accelerate construction of nationally significant roads
• $939.3 million over four years to repair roads damaged by Cyclone Gabrielle, Auckland floods and other North Island weather events
• $266.9 million over four years to upgrade and maintain rail networks in Auckland and Wellington, including $159.2 million over two years to complete the reconstruction of the Auckland rail network
• $200 million over four years to maintain and renew the KiwiRail national rail network
• $10 million over four years for Airways NZ to complete the minimum operational network of ground navigation aids used to safely recover aircraft
• $44 million to support the Civil Aviation Authority in performing essential functions as it reviews fee rates and fees
• $23.1 million over four years for frontline emergency responders to respond to severe weather events and emergencies
• An additional $1 billion over four years for the National Land Transportation Fund

Announced before the budget

Justice, Police, Corrections and Defense ($651 million over four years)

• $226.1 million over four years for an additional 500 police officers
• $424.9 million over four years to support frontline policing ($242.2 million for police salaries and $62.7 million for vehicles and maritime capabilities)
• $78 million over three years to extend resocialization programs for pretrial prisoners
• $812.8 million over five years for prisons to respond to prison population growth
• Savings of $43.4 million over four years by increasing filing, enforcement and fine collection fees

Announced before the budget

Other

• Te Matatini for $48.7 million over three years from the 2025/26 season
• $1.2 billion for the Regional Infrastructure Fund, including $200 million for flood infrastructure upgrades
• USD 5 million for the creation of the National Infrastructure Agency
• $106.9 million over four years of operational funding for GeoNet and the National Seismic Hazard Model
• $92.2 million to replace National with RMA reforms

Announced before the budget