NZ Budget 2021
Slim pickings for business as Government focuses on benefits, health and infrastructure.
In brief
- The Government announces a “recovery for all” Budget
- Heavy investment in health, infrastructure and benefits, but little for businesses
- The Budget a mixed bag against CA ANZ expectations
Finance Minister Grant Robertson’s has declared his fourth Budget will secure New Zealand’s recovery – “a recovery for all”.
Budget 2021 was a winner for welfare.
The Budget deficit is expected to fall from 5.3% of GDP to 0.6% by the end of 2025, with a projected return to surplus in 2027.
The Budget includes forecast GDP growth of 4.4%, and a decrease in unemployment to 4.2% by mid 2023.
The Government scores well against some of our key Budget metrics leaving room for improvement.
The CA ANZ Scorecard
New Zealand Government Relations Leader Charlotte Evett CA maps Budget outcomes against CA ANZ’s key expectations.
Highlights and key measures
Government emphasises spending to secure recovery and ensure long-term economic resilience.
A tax-light budget, but clarity and certainty still needed
With just one core initiative, are tax budgets a thing of the past? Inland Revenue has announced funding for data collection on high net worth individuals and their related entities.
Climate change funding for External Reporting Board
The usefulness of impending climate-related financial disclosures is dependent on the nature of standards and education.
Related downloads
Get the infographic for co-branding
Login to My CA to get CA ANZ's 2021 NZ Budget infographic in a word template
Login to My CAA balanced Budget – NZ Government needs to be agile and bold
In this week’s Budget Chartered Accountants Australia and New Zealand would like to see the Government being agile and bold to deal with a mixture of pandemic-induced issues and old, often deep-seated problems, that have been allowed to fester for too long.
Read moreOur Budget Policy Statement submission
CA ANZ calls for additional detail that we consider is lacking in the latest Budget Statement, including clear and measurable targets covering short, medium and long-term milestones.
