The 2024 Budget: what it could mean for you and your family

Budget 2024 aims to “ease the cost of living, deliver better health and education services and restore law and order” so what does it all mean?

Finance Minister Nicola Willis said “this is a fiscally responsible Budget that delivers on key coalition Government commitments which includes

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.

FAMILY

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.

HEALTH

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

EDUCATION

$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
- $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.
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.

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.

$1.1 billion to support disabled people

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.

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.

Willis said “this year’s Budget is the clean-up job New Zealand needs after six years of economic mismanagement. We are welcoming in a new era of careful government spending, lower taxes for hard-working New Zealanders and a strong focus on rebuilding the economy.

“We have gone line by line through government spending to find savings to responsibly deliver tax relief and boost funding for essential public services.

“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.

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

“Only through a strong economy can we end the cost-of-living crisis, lift wages, reduce interest rates and afford the public services we rely on. Our responsible Budget charts a course for recovery.