Home > Updates > Budget 2022: summary of key announcements
The Government’s Budget 2022 has certainly focused its attention on health, along with a strong theme on reducing carbon emissions. A short-term payment to help with the rising cost of living is also a welcome relief to many low to middle income earners.
We’ve included a Snapshot of the key themes to help you focus on the key aspects of the budget.
If you would prefer a PDF version please view this here Budget 2022 – Snapshot – Nexia NZ
We’ve also provided a summary across the six main budget categories.
A total payment of $350 in three monthly instalments starting 1 August to support an estimated 2.1 million Kiwis who earned less than $70,000 last tax year and are not eligible for the Winter Energy Payment. The payment is around $27 per week for the three months.
Fuel duty reduction extended – $235m
To support Kiwis at the pump, the Government is extending the temporary reduction in fuel excise duties and road user charges for a further two months.
Reducing the cost of public transport – $132m
Budget 2022 extends the nationwide 50 percent reduction in public transport fares for a further two months, and introduces a new ongoing 50 percent fare discount for Community Services cardholders.
Extending Warmer Kiwi Homes – $73m
Extending the Warmer Kiwi Homes programme until June 2024 means that more low-income homeowners can access grants to cut energy bills and reduce emissions.
Tackling long-term drivers of food prices – $11m
Urgent Budget night legislation will progress a key recommendation from the Commerce Commission’s review of the grocery sector by removing barriers to new retailers entering the market.
Our health system exists to support Kiwis when they need care, no matter who they are or where they live. To deliver better services nationwide and achieve better outcomes, we are getting ahead of the curve and funding the system for success. A more streamlined and less bureaucratic health system will mean a greater focus on care and make sure it has the workforce to succeed.
Supporting mental wellbeing – $202m
Investing in mental wellbeing through funding for: specialist mental health and addiction services, continuing and expanding support for primary and intermediate school-aged children, and continuing an important pilot developing better tailored support for our young people.
Investing in health infrastructure – $1.3b
Supporting delivery of safe and appropriate healthcare by providing facilities and infrastructure that can support current and future demand, including priority capital projects such as Whangārei Hospital, and starting the redevelopment of Nelson Hospital.
More medicines for more New Zealanders – $191m
A two-year funding boost for the Combined Pharmaceutical Budget managed by PHARMAC to ensure that more medicines are available to more New Zealanders.
Substantial investments to decarbonise the transport sector and cut transport costs for Kiwi households, including funding to deliver infrastructure to support mode shift, measures to increase public transport capacity and encourage uptake, and financial support for households to shift to low-emissions vehicles to cut everyday costs and reduce our economy’s reliance on volatile global oil markets.
Energy and industry – $765m
This includes support for businesses to shift to cleaner energy to cut costs and reduce emissions, and market measures to support the transition to a highly renewable electricity system.
Agriculture – $381m
Partner with farmers and growers to fund research and development of agricultural emissions mitigations, as well as funding for immediate decarbonisation efforts on farms through a programme to support existing producers and Māori entities to implement low-emissions on-farm practices.
Forestry – $347m
Support for measures to establish native forests at scale, and in the appropriate place, by developing long-term carbon sinks and improving biodiversity. Investments also increase the available woody biomass supply to replace coal and other carbon-intensive fuels and materials.
Supporting industries to innovate and profit from a more secure economy through Industry Transformation Plans in construction, advanced manufacturing, agritech, digital technologies, forestry and wood processing, food and beverage, and fisheries.
Investing in regional business support and tourism – $192m
Boosting the Regional Strategic Partnership Fund to invest in local projects tailored to particular regions, increasing broadband infrastructure in the worst-served regions for greater productivity, and working with the tourism industry to innovate and grow their sector in a changing world.
Developing a Business Growth Fund – $101m
Establishing a Business Growth Fund to improve access to capital for small- to medium-sized enterprises. Partner with New Zealand’s major banks to grow the scale and reach of the fund.
A locally-trained, skilled and productive workforce – $316m
Topping up and extending the Apprenticeship Boost Initiative, Mana in Mahi and the Māori Trades and Training Fund to lift economic inclusion and support employment opportunities for Kiwis by helping businesses take on apprentices.
Continuing capital and infrastructure investment – $61.9b over five years
Forecast Crown infrastructure investment over the next five years now totals $61.9 billion. Continue to lay strong foundations and reduce New Zealand’s infrastructure deficit by investing in projects like Auckland Light Rail, water infrastructure, and rolling stock for rail.
Alongside the significant health investment, Budget 2022 includes funding to support hauora Māori health services, and support for Whānau Ora Commissioning Agencies.
Māori adaptation to climate change – $167m
Enabling an equitable transition to a high-wage, low-emissions economy by investing in Māori climate action, an equitable transitions programme and the Takutai Moana Financial Assistance Scheme.
Māori economy and employment – $155m
Supporting job opportunities for Māori by continuing the Cadetships Programme, and encouraging public sector procurement opportunities for Māori businesses.
Protecting language, culture and identity – $354m
Supporting the teaching and learning of te reo in schools through Māori language education funding, along with investing to develop a thriving Māori media sector and empowering Pacific communities to tell their stories of the Dawn Raids.
Supporting Pacific health services – $76m
Funding to support Pacific health providers to develop capability, improve infrastructure and prepare for system reform, along with a targeted diabetes prevention and management programme.
Investing in Pacific education and employment – $47m
Supporting Pacific employment and education opportunities with investment in Pacific Science Technology Engineering Arts Maths futures and Tupu Aotearoa.
Continuing to address challenges to housing access and affordability through funding for public and transitional housing, progressing the Homelessness Action Plan, and the Affordable Housing Fund.
Sustaining and transforming the disability system – $943m
Supporting the disability system by addressing pressures to enable providers to meet demand, establishing a new Ministry for Disabled People, and investing in the regional-based rollout of the Enabling Good Lives approach.
Improving access to dental treatment – $126m
Improving adequacy and accessibility of necessary dental treatment for people on income support and low income families and whānau by increasing the support available to $1,000 annually per person.
Investing in education from childhood through tertiary – $2.8b
Investing in improved education for our children by supporting the education workforce, including strengthening Māori and Pacific language teaching, support for the tertiary education sector to meet demand, and implementing the Equity Index.
Child support pass-on to boost sole-parent income – $354m
Changing child support so that sole-parent beneficiaries will receive those payments as income, increasing the incomes of many sole-parent beneficiaries and their families and whānau.
And if any of these announcements will impact on your plans for the coming year, please contact your Nexia advisor to discuss this in more detail.
For further information please visit the Budget 2022 website