The Government has released its Budget 2023 for key areas of expenditure, including childcare, healthcare, transportation, and energy bills.

It includes the expansion of the 20 hours free Early Childhood Education (ECE) subsidy to include two-year-olds.

The Government has eliminated the $5 prescription co-payment, making most prescriptions free, although this was already available at bulk buying chemists.

More than 1.6 million New Zealanders, including 774,000 additional children and young people, will now have access to free or half-priced public transport.

Tax rate for trustees to increase to 39 per cent from April 2024 – the same as the top income tax rate.

Aimed at stopping people using trusts for their income to avoid the higher tax rate. Expected to raise $350 million a year.

Inflation is forecast to drop to 3 per cent by next September.

Treasury is no longer forecasting a recession, due to cyclone recovery. Unemployment is forecast to peak at 5.3 per cent in late 2024.

GDP is forecast at 3.2 per cent this year, dropping to 1 per cent next year.