Budget 2020
Budget 2020 Highlights
In the lead up to the Budget, the Prime Minister commented ' New Zealand is about to enter a very tough winter'. This year's budget is all about jobs. Here's where the money is going.
$50 billion to establish the COVID-19 Response and Recovery Fund
$3.9 billion to ensure all DHBs continue to meet the needs of their populations
$1.1 billion capital invested in improving transport across New Zealand, including replacing ageing ferries and locomotives
$414.2 million for the Early Learning Sector, including funding subsidies, pay increases for educators, additional support for home-based educators and investment in playcentre sustainability
$246.1 million investment in community services, including a significant funding boost for family violence service providers
$193.5 million to support farmers through the eradication of Mycoplasma Bovis
$47.8 million to replace ageing communications capabilities for Police, Fire and Ambulance to support healthier, safer and more connected
$3 billion more for infrastructure, including building 8000 state and social houses over the next 4 to 5 years.
Covid-19 Recovery package
Business support
Wage subsidy extended but targeted - $3.2 billion dollars to support a targeted extension of the Wage Subsidy scheme. From June 1 businesses that suffered a 50% drop in revenue over a 30 day period will be able to apply for a further eight week period. (The initial 12 week scheme was available for businesses that could show a 30% revenue reduction).
$400 million Tourism Recovery Fund – including a transition programme to support businesses to plan for the next steps, a fund to ensure key tourism assets survive and a domestic tourism campaign
Targeted sector support totalling $41.4m is being spent across three years in construction, digital and agritech sectors
Research and Development - $150 million short-term temporary loan scheme to incentivise businesses to continue R&D programmes. The loans will provide one-off finance and will be administered by Callaghan Innovation.
Ecommerce support for small businesses - $10 million in funding to support small businesses to improve their e-commerce service offerings, and incentives/grants to encourage ecommerce adoption.
Trade - $216 million boost to New Zealand Trade and Enterprise to expand the scope and intensity of support provided to exporting firms.
Trades training support
$1.6 billion in a Trades and Apprentices Package including financial support for businesses to retain their apprentices, free apprenticeships and training in targeted critical industries. There is a specific $50 million fund for Maori Apprentices and Trades Training.
$400m in Ministry of Social Development Employment Support
$121m for He Putama Rangatahi
$19.3m to place 10,000 people in primary sector jobs
$1.1 billion environmental jobs package: predicted to create almost 11,000 new jobs
$900 million to support Maori
Funding includes a $200m Maori employment package
$400m increase to Maori education
Read more on the 2020 budget here.