The cost of living package targets families with young children.
Two-year-olds included in 20 hours of free early childhood education from March 2024, at a cost of $1.2 billion over four years. This saves eligible parents about $133 a week. Subsidies for childcare centres rise by 5.3 per cent, costing $260 million over four years.
$327 million for free public transport for primary school-aged children, half price public transport for under 25′s from 1 July - benefiting about 774,000 people. Pay rises for bus drivers.
Removing $5 co-payment for prescriptions, cost: $618 million over four years.
More money to help reduce waiting lists ($118 million) and $100 million to boost primary care. $63 million for 500 extra nurses. $75 million more for Pharmac.
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.
National Resilience Plan set up with initial funding of $6 billion - first priority is repair and rebuild of telecommunications, energy and roading after Auckland flooding and Cyclone Gabrielle.
$403 million to expand scheme for heating and insulation installations to 100,000 more homes. 3000 new public housing places.
Inflation is forecast to drop to 3 per cent by next September.
Treasury 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.
Return to surplus forecast in 2025/26. Net debt is forecast to peak at 22 per cent of GDP in 2024.
$34 million increase in funding for Te Matatini (over two years) - up from $3 million a year now. The festival will get more funding than the NZ Symphony Orchestra for the first time.
New 20 per cent rebate for game development studios - allowing them to claim up to $3 million a year in rebates, even if it falls short of a similar scheme across the Tasman.
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