While Budget 2025 might not specifically mention Northland very much, there are numerous things that will help the region go forward, says Whangārei Mayor and Northland Mayoral Forum chairman Vince Cocurullo.
“There’s lots of little things all over the place that equate to something big.”
For a start, no funding has been cut, with items like the Whangārei Hospital redevelopment still going ahead and the North likely to benefit from $6.8 billion in capital infrastructure funding, he said.
“The big thing is that they haven’t cut anything. The hospital is still on the cards and investment into the roads is not being cut.”
Cocurullo said improvements to the rates rebate scheme will make a big difference in Northland.
The threshold change means every SuperGold cardholder with NZ Superannuation as their only income and rates higher than $2000 will be eligible for the full rebate. The maximum rebate will also increase from $790 to $805 a year.
Whangārei has very high numbers of people applying for the rates rebate each year, including people living in retirement villages who own their own units, Cocurullo said.
“We have a huge amount of rates rebates – it’s nice to have a little bit more for some of those who need it.”
The Investment Boost tax package will be relevant to lots of small businesses around Northland, Cocurullo said.
The $1.7b-a-year package will allow businesses to deduct 20% of the cost of new asset – such as machinery, vehicles and technology – on top of depreciation, meaning a lower tax bill in the year of purchase.
This will encourage business investment and help productivity in Northland – where businesses tend to run on the smell of an oily rag, he said.
However, NorthChamber chief executive Leah McKerrow was more muted about the Investment Boost, saying it was unlikely to make much difference in the short term.
“It assumes that people will be able to afford to purchase new assets in the first place. It will be great if companies can afford to invest but do they have the capital?”
Another concern was the changes to KiwiSaver, she said.
The Government is halving its yearly contribution from $521 to $260.72. However, the default rate of employee and matching employer contributions will rise from 3% to 4% of salary and wages, phased in over three years.
McKerrow was concerned about how businesses will pay for this increase, as they have no extra funds, and could look to pay for it by employing people on a lower wage.
Overall, she thought the Budget was restrained and unlikely to lead to much growth in the short term.
However, that meant the Budget would not add to inflation, helping to keep interest rates down, which would be good for business, she said.
Liz Cassidy-Canning, chief executive of charity Whare Āwhina, was more forthright in her opinion of the Budget, calling it disappointing.
“Our most vulnerable are invisible in it,” she said.
Cassidy-Canning was pleased $15 million was included in the Budget to fund community-based food banks, like Whakaora Kai Food Rescue Northland, for another year.
But she said the need in Northland is high and families in need are still missing out.
Changes to Working for Families – in which eligible families will get an extra $14 a fortnight – will not even cover the rising cost of living, she said.
Changes to pay equity claims – which were revealed to save the Government $12.8b – will have an impact on low-paid women workers, Cassidy-Canning said.
“Pay equity does make a huge difference nationwide. We can see it was a cost-cutting exercise, there’s no other way to see it.”
Cassidy-Canning said she would have liked to see more funding for community organisations, which are able to prove the positive impact they have for the community’s most vulnerable people.
“Community organisations are working really hard, we need the Government to recognise that. Come and measure our impact.”
She was also disappointed more funding has been set aside for boot camps for young serious offenders, despite a trial where two of the 10 young people absconded.
Cassidy-Canning said everyone will have to wait and see to understand the impact of a new Social Investment Fund, which is allocated funding of $190m.
Another area where Northlanders will have to wait and see is over more funding for the 2023 weather events. A further $219m funding was announced to repair local roads, with a focus on councils in the eastern North Island.
However, Cocurullo said it is still possible Northland councils could be eligible for more funding too.
Whangārei alone has some $20m of recovery work still to be done, he said.
Do you have questions about the Budget? Ask our experts – business editor at large Liam Dann, senior political correspondent Audrey Young and Wellington business editor Jenee Tibshraeny – in a Herald Premium online Q&A here at nzherald.co.nz at 9.30am, Friday, May 23.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.
Education got a $2.5 billion boost in Budget 2025.