- Deficit expected to fall from 5.3% of GDP to 0.6% by the end of 2025
- GDP growth forecast at 4.4% by mid 2023
- Unemployment expected to fall to 4.2% by mid 2023
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.
Chartered Accountants Australia and New Zealand brings you our highlights of New Zealand’s Budget 2021.
CA ANZ New Zealand Budget 2021 infographic
1. $17.29 million for climate disclosure standards by XRB
The government has allocated $17.29 million to the External Reporting Board (XRB) over the next five years to support its now expanded mandate to introduce standards and guidance for climate reporting, and to progress the integrated reporting project.
2. $200 million tourism sector support
Funded from the COVID-19 Response and Recovery Fund, $200 million will be used to provide support for communities that are most reliant on international tourism, as well as for the tourism sector nationwide.
3. $300 million New Zealand Green Investment Finance
The government will recapitalise New Zealand Green Investment Finance Ltd to continue to invest in support of climate change mitigation, with a particular focus on decarbonising public transport, waste and plastics.
4. Main benefit rates increasing by between $32 and $55
The government will lift weekly main benefit rates per adult, to bring these in line with a key recommendation of the Welfare Expert Advisory Group. Increases will be implemented in two stages – first on 1 July 2021 of $20 per adult and then again on 1 April 2022. Alongside this, the government will provide an additional boost of $25 per week to students and $15 per adult to families with children.
5. $44 million digital training for small businesses
The government is investing $44 million in a digital training, advisory and support programme for small businesses. This funding will enable a partnership with the private sector to deliver a two-year nationwide programme.
6. $1.3 billion vaccine rollout
Of this funding, just under $1 billion has been provided for advanced purchasing of the vaccines and $357 million is for the Ministry of Health to design and implement the immunisation programme.
7. $3.8 billion for Housing Acceleration Fund
Funded from the COVID-19 Response and Recovery Fund, the Housing Acceleration Fund will provide for a mix of public, affordable and market housing (with $350 million already ring-fenced for Māori housing programmes).
8. $225 million for Māori Health Authority
Funding to support the initial work towards establishing the Māori Health Authority, as part of the broader set of health sector reforms.
9. Social Unemployment Insurance Scheme
The Government, Business NZ and the New Zealand Council of Trade Unions are jointly designing a Social Unemployment Insurance Scheme to support workers to retain about 80% of their income for a period after they lose their jobs.
NZ Budget 2021
Read more of what the CA ANZ advocacy experts say about the NZ Budget.Read more