Latest news with #GilesDexter
RNZ News
23-05-2025
- Business
- RNZ News
Govt tells businesses they'll get tax incentive to invest in assets
The Finance Minister has taken the government's new Investment Boost scheme on the road, telling businesses the government will give them a tax incentive to invest in assets. There appears to be cross-party support for the scheme - a rare example in a Budget that's had the opposition crying foul on almost everything else. Labour's promising to reverse the pay equity changes - but can't commit to a cost, while the Greens say it can already be paid for through their own Budget. Political reporter Giles Dexter has more. To embed this content on your own webpage, cut and paste the following: See terms of use.
Otago Daily Times
22-05-2025
- Business
- Otago Daily Times
Govt books to return to surplus after three years
By Giles Dexter of RNZ An uncertain economic outlook and slower recovery will keep government finances in deficit for the next three years before a return to surplus. The Budget forecasts a $3 billion a year lower tax take, while expenses are about $1 billion higher than forecast in the December update, resulting in the budget deficit peaking at $12 billion in the coming year and staying higher than expected before a surplus of $200 million in 2029. Finance Minister Nicola Willis said today the Budget was aimed at securing and enhancing economic recovery. "Budget 2025 responds to New Zealand's long term challenges with initiatives to boost growth, investment, and savings. "There are targeted investments in essential services and infrastructure... And reforms fix financial holes in the government books." Treasury forecast this year's deficit, using the newly introduced calculation excluding ACC costs, to the end of June would be $10.2 billion, about $2.7 billion lower than forecasted. The deficit will peak in the coming year at $12.1 billion, nearly $2 billion more than the December forecast, with the 2027 forecast nearly double the previous forecast at $8.1 billion. Willis said she was proud to get deficits lower and reduce debt levels. The Budget has used close to $13 billion from the now-revamped pay equity scheme. Economic outlook Treasury economic forecasts were pulled back in the near term because of uncertainty about the global outlook and a slower economic rebound after last year's recession. Growth was forecast to be slower for the rest of this year before picking up and sitting near three percent a year for the next three years. Unemployment is forecast to be near the peak and is expected to fall below five percent in the next two years, while inflation is forecast to stay close to the Reserve Bank's two percent target point for the next few years. Business tax breaks Businesses were offered a tax break for new machinery and plants through a larger and quicker depreciation of assets. The Investment Boost incentive will allow businesses to claim 20 percent of the cost of the asset immediately, compared to the current 10.5 percent rate. Willis said the enhanced tax break would help drive growth. "Investment Boost delivers more bang for buck than a company tax cut because it only applies to new investments, not those in the past." The policy was forecast to cost the tax take about $1.7 billion a year in foregone tax, but was said to be likely left economic growth by one percent and wagers by 1.5 percent over the next 20 years, with much of that in the first five years. Net debt is forecast to peak at 43.5 percent of GDP in 2025 and is forecast to remain above the government's 40 percent ceiling for the following three years. KiwiSaver changes The KiwiSaver retirement scheme was given a makeover with a staggered increase over the next two years in the minimum default contribution rates to four percent from the current three percent, with 16-18 year olds also to be eligible for contributions. Willis said the changes would make KiwiSaver more sustainable and encourage people to save more for their houses. However, the government halved its own annual contribution to $260 a year, and withdrawing that from anyone earning over $180,000 a year. The move was expected to save the government about $400 million, while it was assumed that employers would offset their contribution through lower wages.
RNZ News
21-05-2025
- Business
- RNZ News
One sleep away from Budget Day 2025
The Budget's been picked up from the printers and the Finance Minister's promising no rainbows, no unicorns, and no BS. There's just one sleep to go until New Zealand finds out who's getting what - and where that money is going to come from. With a low operating allowance, the money is going to have to come from somewhere, with opposition parties poised and ready to scrutinise every line. Political reporter Giles Dexter has more.
RNZ News
24-04-2025
- Politics
- RNZ News
NZ delegation Taiwan trip draws rebuke from China
A cross-party visit to Taiwan has drawn a strong rebuke from China, which has accused the New Zealand MPs of colluding with pro-independence separatist forces. New Zealand does not recognise Taiwan as a country, instead adhering to the One China policy. The co-leader of the delegation has defended the trip, saying it was in a private capacity to learn more about Taiwan. Political reporter Giles Dexter has more.
