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Budget 2022

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Finance Minister, Grant Robertson has delivered Budget 2022, The Wellbeing Budget: A Secure Future. The Government views this Budget as ‘investment in a high-wage, low-emissions economy that provides economic security in good times and bad’.

You can view the 2022 Budget at a Glance here, and Beehive releases about the elements of the budget here.

We welcome the extension of the Apprenticeship Boost initiative and the support put in place to address the rising cost of living. We also look forward to providing input into the new Tourism Innovation programme, which Government have indicated will be designed with input from the Tourism (including hospitality) sector, and finding out more about the Business Growth Fund to be developed. However we are disappointed there was not more of a focus on business support that addresses some of the challenges for sectors like ours hardest hit over the past 2 plus years by Covid.

We will provide more detail when this is available.

Budget 2022 priorities:

  • $1 billion cost of living package supporting low- and middle-income
  • $4.7 billion of new capital investment
  • Largest ever investment in health, $11.1 billion over 4 years, starting with a two-year health budget
  • $2.9 billion of climate investments for energy security and lower costs for New Zealanders
  • New multi-year funding approaches in Justice and Natural Resources

Some of the areas to impact our businesses and sector

  • An extension of the Apprenticeship Boost initiative, Mana in Mahi and the Māori Trades and Training Fund to support businesses to take on apprentices.
  • $54.2 million towards a Tourism Innovation programme which will be designed with input from the sector.
    • The new programme is subject to further detailed design work, and will prioritise innovation and low-emissions projects, and support tourism recovery.
    • Government will work alongside tourism businesses to develop new innovative ideas that improve sustainability and productivity of eligible businesses.
  • $100m for a Business Growth Fund for SMEs.
    • Developed alongside Aotearoa’s major banks.
    • This new fund aims to improve access to finance for small and medium businesses.
  • Continuation of the $200m Regional Strategic Partnership Fund – to invest in local projects.
    • The fund invests in regional business support and tourism in particular regions.
  • Industry transformation plans for key industries, including food and beverage.
  • Urgent Budget night legislation introduced, to remove barriers to new retailers entering the grocery market, and help bring prices down.
  • $20m for Digital Technologies Transformation plan.
  • The Fuel Excise Duty and Road User Charges cuts will be extended for two months (to August 2022).
  • New temporary cost of living payment ($350) for people earning less than $70,000. Estimated 2.1 million New Zealanders eligible for approximately $27 per week per person. This will be paid in three monthly instalments from 1 August.


Covid-19

  • In further indications that future pandemic outbreaks will not be financially supported by the Government, the Covid-19 Response and Recovery Fund (CRRF) will be closed and remaining funding repurposed, with $1.2 for urgent public health needs and $1b for cost of living relief.

Cost of living package at a glance

  • Targeting low – middle income households
  • The Fuel Excise Duty and Road User Charges cuts will be extended for two months (to August 2022)
  • Half price public transport extended for a further two months (to August 2022)
  • New temporary cost of living payment ($350) for people earning less than $70,000. Estimated 2.1 million New Zealanders eligible for approximately $27 per week per person. This will be paid in three monthly instalments from August 1
  • Urgent Budget night legislation introduced to remove barriers to new retailers entering the grocery market, and help bring prices down
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