The 2022 Budget responds to concerns around inflation, the housing and cost-of-living crises, climate change, and business sectors signalling they’re still trying to recover from blows dealt by the pandemic.

Not surprisingly, a huge slice is allocated to health, $13b over the next four years.

Price caps increase on eligible houses for First Home Grants and are eliminated for First Home Loans.

Reductions at the pump and on public transport extend till August. A cost-of-living payment of $350 delivered across three monthly payments is planned from 1 August, for an estimated 2.1 million Kiwis aged 18 or over, who earned less than $70,000 last year. Inland Revenue will pay it directly into your bank account if you’re eligible (check your bank account details are correct in myIR). Those who already qualify for the Winter Energy Payment, or for Jobseeker support, superannuation or certain other benefits won’t receive it.

To increase competitive pricing for groceries, the Government is banning restrictive covenants over land preventing new entrants from entering the grocery retail market.

Climate change initiatives include:

  • a vehicle ‘scrap and replace’ scheme supporting low-income households to shift to low emission alternatives
  • support for shifts away from motor vehicle reliance – urban cycle networks, walkable neighbourhoods, safer, greener school travel, and more reliable, user-friendly public transport
  • decarbonising the public transport bus fleet, with zero-emission buses and infrastructure

Forestry and agriculture sector investments include:

  • reducing the use of coal and carbon-intensive fuels and materials
  • creating large-scale native forest carbon sinks
  • a Centre for Climate Action in Agriculture supporting innovation and research
  • an agricultural emissions pricing scheme

For news on what the budget offers businesses, please read our Budget 2022 – What’s in it for business?