Budget 2025’s significant policy shifts, with major changes to pay equity funding, KiwiSaver contributions, have been described as both moves for the future and an “outrage” in immediate reaction to the Finance Minister’s announcements today.
Appearing on TVNZ’s Q+A Special, political commentator Brigitte Morten and former Labour leader David Cunliffe took widely varying stances to Nicola Willis’ second Budget.
Cunliffe described the pay equity changes, which it’s estimated will amount to $12.8 billion of savings in Budget 2025, as being a “MAGA-style override”.
“Here’s we’re seeing the abrogation of an existing set of claims winding their way through a legal, or quasi-legal process, squashed by legislation passed under urgency with no select committee process.”
He said the cuts to pay equity provision were more than twice the improvement in the operating balance.
“Not only did Nicola need to rob Penny to pay Paul, but she’s robbed Penny twice as much as she’s paying Paul, it’s two times the improvement in the books.”
He described it as an “outrage” and that it shouldn’t have happened.
“National’s more than lost the narrative, I think they’ve lost a lot of women voters.”
Morten, a self-confessed fan of Finance Minister Nicola Willis, said today’s Budget was not for today but a “Budget looking out to the future”.
“I think those KiwiSaver changes are really, really important, that infrastructure spend is really important too.”
1News Political team Maiki Sherman and Benedict Collins explain what the Budget means to New Zealanders – watch on TVNZ+
Speaking about a new “Investment Boost” tax deduction for businesses, Morten said she believed that businesses, rather than governments created jobs.
An immediate deduction of 20% off the cost would apply to the cost of buying assets like machinery, tools, equipment, vehicles and technology.
“By taking that tax incentive for productive assets, I think that’s going to be a great way of telling businesses, ‘have the confidence to invest in these uncertain times’.”
What’s left for pay equity?
From Parliament, 1News political editor Maiki Sherman said we now know how much has been saved – over $12bn over four years – from halting pay equity claims. But we still don’t know how much has been set aside for future agreements in the public sector.
“We don’t know is what the figure that the Government has left in terms of the money left in the kitty to settle future claims – the minister said that figure is commercially sensitive – but you can expect those protesting outside they won’t be happy with that,” Sherman said, referring to the hundreds who had gathered outside the Beehive as people poured over the Budget documents inside.
She also pointed to Treasury’s Budget Economic and Fiscal Update, which noted a potential economic impact of the changes being employers offsetting “the majority (80%) of their higher contributions via lower-than-otherwise wage increases” and the associated impact on household spending.
Sherman also said parents would be happy with a boost to learning support, but it would be interesting to see what schools make of the changes.
1News political reporter Benedict Collins highlighted that one of the key issues likely to be noted by voters was changes to KiwiSaver.
Those earning over $180,000 would no longer get government contributions to their retirement saving fund, while parents were effectively being “means tested” though changes to Jobseeker and emergency benefits, which sees a parental assistance test introduced for single unemployed 18 and 19-year-olds.
