Budget 2017 at a glance

Money is earmarked for State Highway One and KiwiRail

How do you rate Steven Joyce's first Budget?

Pandering to voters
27%
Safe and steady
56%
Good if you're a baby boomer
17%
Total votes: 613

Family Income Package:

The government has allocated $2 billion a year for a family package which includes increasing tax thresholds and scrapping the Independent Earning tax credit. Students receiving an allowance from the government will get up to an extra $20 a week for accommodation benefits.

What this means:

Working for Families Family Tax Credits will rise by $9.25 a week for a first child under 16, and between $17.75 and $26.81 for other children. But payments will abate earlier and more quickly. 

Adjustments to income tax thresholds will deliver $11 a week for workers on more than $22,000 and at least $20 more for those earning more than $52,000.

Public Services:

Some $7 billion has been allocated over the next four years to “sustain and expand” public services, including $3.9 billion for the health sector, $1.76 billion of that for district health boards. Education receives $1.1 billion and law and order initiatives will get an extra $1.2 billion.

Infrastructure:

Infrastructure initiatives have been allocated $4 billion in new capital spending in the budget. SH1 – north and south of Kaikoura gets $812 million and $450 million has been made available for rail infrastructure and rolling stock for KiwiRail’s freight business.

Business Growth Agenda:

Some $372.8 for the second round of the government’s Innovative NZ programme has been made available over the next four years, including $203 million for science and innovation and $132.1 for tertiary education, skills and employment. 

Economic outlook:

The government’s outlook for the economy is rosy, picking GDP growth to average 3.1% over the next five years and peaking at 3.8% in 2019. It is also forecasting unemployment will fall to 4.3% by 2020, with net debt expected to fall to just over 19% by 2020/2022.

Maori Development:

The budget includes $93 million over four years for Maori development, with $10 million for Whanau Ora support across New Zealand and $21 million for Maori language initiatives. 


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23 Comments & Questions

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And of course, the extra taxpayer donations to property investors rolling out through expansions of the Accommodation Supplement. Driving every young Kiwi's rent up further in the process.

What a time to be a Boomer!

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Yes a terrific budget Bob! Not a word of touching our lovely negative gearing tax breaks. Nor a mention of touching our gorgeous tax free capital gains.
Not a cloud in the sky today, nor a land tax, or stamp duty in sight.
Might have to crack open a nice bubbly tonight, and get to planning some more rent risers to tie in with these accommodation supplement increases.

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Hopefully young Kiwis won't cotton on to the fact we'll be able to raise their rents once the accommodation supplement increases. Steven Joyce says he'll keep an eye on promises...but happily, I think this is a Tui billboard.

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Too right Bob. We were definitely the winners on the day, not that I like to crow too much! Some people resent successful people like ourselves you know.
The youngsters get their accommodation supplement increases, we increase their rents, and rising rents has got to be good for supporting high house prices, locking them into renting from us even longer.
Much rather the government surpluses end in our back pocket than paying down debt, building state houses or restarting super fund contributions.
It's great these guys are doing so little about immigration too. There is so much demand out there, that if we get the slightest quibble from these youngsters about rising rents we can tell them to go join a queue and try their luck elsewhere.

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Scrapping IETC, so $520 per annum out, but add back in ~$800-$900 in savings from higher tax thresholds. So, a mere 2 or 3 extra shopping trips or electricity bills for the average wage earner per annum.

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Yes, but the higher tax thresholds are automatic, IETC had to be claimed and often wasn't.

Regardless - making the system simpler is better even if there were no savings.

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Yes, an interesting development indeed going for that route. I'm not going to argue with a few hundred extra in my pocket every year, especially if my complaints mean nothing anyways!

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Why did they not do as in Australia & make say the first $15,000 p.a. of any earnings tax free. That helps everyone & stops the IRD time waste of chasing paperboys for their tax.

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...but...await the real damage on all households and business... Watch them wheel in the levies n stealth taxes to pay for tge $1.4bn (per annum) going to the corrupt Paris climate scamming agreement!!!

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The elephant in the room, which the government has again failed to address, is the problem of the reserve bank's ridiculously low interest rates, set after government prompting to enhance export returns.
We are living in a fool's paradise which can't continue; time for some things to be fixed!

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But the government is doing something through running surpluses. Fiscal and monetary policies are linked - if the Government is reducing capacity by running surpluses then the Reserve Bank doesn't necessarily want to further reduce capacity by increasing interest rates. Were the Government running deficits at this stage of the cycle then RBNZ would definitely have increased rates significantly by now!

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Higher interest rates won't fix anything. In the mid to late 2000s interest rates were much higher. But property prices and debt levels still increased at crazy speeds. But exporters got slaughtered due to the high exchange rate.

If anything interest rates are still far too high. Look at business and rural lending rates and you will see what I mean. The cash rate should be lowered until the exchange rate is around US50c for $1NZD. Then exporters could really do far better.

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If we were in the G20 we would have the 8th highest interest rate. The RBNZ is independent from the government, and actions by Wheeler have shown that (and peeved them off, no less).

Upping tax brackets, thereby putting more money into consumers hands for spending, along with a massive infrastructure build ahead are more than likely to see your beloved rates start hiking higher sooner rather than later. Better late than never...

Tell me again how you would stoke inflation? Must have missed the memo...

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Obviously a man not understanding economics. Simply put raise our interest rates and watch our dollar climb. If you need more income from your savings and have been relying on bank interest rates that is your lot, me at 65+ have a diversified portfolio and am happy the rates are low for my kids mortgages. As to the budget, something for everyone, it is election year after all, if you expected something else then you again are living a fools existence

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How did the pensioner s get on in the budget pensioners over 65 years

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Wondering if there was anything for the over 65 pensioners

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Pensions are taxed in the same way as any other income but were never eligible for the Independent Earner Tax Credit. Therefore, the change in the lowest tax bracket from $14,000 to $22,000 means that the entire pension is now taxed at the bottom rate of 10.5%.

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Ah they already get $390 in the hand a week. That's not bad if you own your own home with no rent or a mortgage to pay. I know some pensioners that even manage to save a bit. If your still renting after 65, then things aren't that great for you.

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How come maori get millions for development where has the millions they have already received gone no one can tell me the average maori hasn't seen a dollar of it

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Each of the iwi provide reports on their own spend, to one extent or the other.

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Sucked in! Most of the "benefits" are scheduled to be applied 12 months away. ie they do not need to ever be met, the next budget will be almost on us and it may be delivered from a different government.
A classic election bribe

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Govt is bending over backwards to encourage people to have kids they cannot afford and that Society does not need

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Unrestricted breeding, it's a real problem for the world. Some would say it's the biggest the world faces.

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