At a glance: half-yearly Treasury update

Treasury has released its half-yearly forecasts today - sparking another debate between Labour and National over the managing of the Government's books.

Below is a brief outline of some of the key points from the Half Year Economic and Fiscal Update.

• Housing

Efforts to build new houses won't gather pace until 2019 - despite the KiwiBuild programme to build 100,000 affordable homes over 10 years. That ambitious goal will face headwinds including a construction sector near capacity and struggling to find the right workers.

There has been an apparent softening in demand in the housing market, but Treasury also noted the fundamental drivers of demand have persisted, including population growth and low interest rates.

The half-yearly update states that in the construction sector "measures of capacity utilisation...are near record highs" and "the pressure on materials is pushing construction costs higher". Banks have also become more restrictive when lending to developers, and demand appears to have softened.

"However, the fundamental drivers of demand have persisted, including strong population growth and low interest rates," the update states.

• Jobs

The economy is expected to grow at an average of 2.9 per cent per year over the next five years. The unemployment rate is forecast to fall to about 4 per cent, and wage growth is expected to pick up.

• Welfare

Labour's Families Package will kick in from July next year and is expected to benefit 384,000 families with children by an average of $75 a week.

The package, brought in instead of National's planned tax cuts, is projected to benefit a further 650,000 families without children by an average of $14 a week, through increases to the accommodation supplement and a new winter energy payment for all beneficiaries and superannuitants.

• Immigration

Treasury sticks with its pre-election forecast that net migration will drop from about 70,000 a year now to the long-run level of 15,000 by 2022. Labour's pledge to "turn down the tap" could change the composition of new arrival - but Australia's strengthening economy is expected to have a much bigger impact on numbers.

• Education

Labour's policy to roll out free post-school study and training will cost $397m in 2021/22. A year's free study rolls out from next year, and will be available to around 80,000 people. Treasury has indicated extra money will be needed for special education.

• Transport

Rail investment through the National Land Transport Fund will require further exploration that Treasury says may not be completed in time for projects including commuter rail between Auckland, Hamilton and Tauranga.

• Health

Funding and other details for commitments including free annual health checks for seniors and more funding for GP practices are yet to be finalised.