Table of Contents
Summarised by Centrist
Budget 2025 has drawn a muted response from the public, with a Talbot Mills Research poll showing more New Zealanders think it will hurt rather than help.
However, business leaders and even opposition MPs have welcomed the new investment tax break.
According to the poll, 33% said the Budget would be bad for New Zealand, while 22% said it would be good. Asked about personal impact, just 9% felt it would benefit them.
Talbot Mills described it as the most negatively received Budget since it began tracking sentiment in 1996.
Notably, Talbot Mills also provides the Labour Party’s internal polling.
Finance Minister Nicola Willis said the Budget was “responsible,” citing forecasts of 240,000 new jobs, higher wages, and a return to surplus by 2029.
One centrepiece was the “Investment Boost” policy, allowing businesses to immediately deduct 20% of new asset costs from their taxable income in the year the asset is first purchased.
Treasury projects the policy will lift GDP by 1% over 20 years, with most of the benefit arriving in the next five.
Prime Minister Christopher Luxon said, “Farmers, tradies, and other business owners… are buying new machinery, tools and equipment this weekend because of Investment Boost.”
The Budget also made savings by reforming KiwiSaver and pay equity rules. The government halved its KiwiSaver contribution to about $260 and raised the default contribution rate to 4%.
