Budget 2022: what does it mean for you?
With the cost of living soaring, interest rates rising and house prices falling, Budget 2022 aimed to deliver a little something to help the average household.
Support for rising household prices
You get to enjoy at least some of the benefits of the latest Wellbeing Budget, particularly the extended fuel excise and road user charge reductions. Those last for another two months, as do the half-price public transport fares.
For those earning under $70,000 a year, there is a one-off $350 cost-of-living payment, which equates to $27 per week for three months. Lower-income households will have access to more subsidies for insulation and heating, and in the Emissions Reduction plan, could be partly funded into a low-emission vehicle.
Child support payments should also run a little more smoothly for single parents.
First home buyers get a small boost
The house price caps for First Home Loans have been completely removed, while the price caps for First Home Grants have been increased significantly.
This should help if you, or someone you know, is on the brink of being able to afford a home but not quite able to get over the final affordability hurdle. Hopefully, this will support more Kiwis into their own houses.
Funding for businesses
The Budget is light on business spending but does include a new $100 million Business Growth Fund for SMEs. This could be instrumental in addressing the ongoing difficulty of business lending for SMEs.
The Government is also continuing the Regional Strategic Partnership Fund and putting some money towards designing its earlier-announced income insurance scheme. Apprenticeship schemes are getting an additional $230 million in funding, which may eventually help address some of the current skill shortages in our labour markets.
How do you get access to new funding?
We’ll be keeping a close eye on exactly how people can receive the $350 cost-of-living payment or any of the other funding opportunities from this Budget. We can talk you through what you might be entitled to, and help you figure out how this will affect your business or your staff members.
Get in touch, we’d love to hear your thoughts.
2022 Budget at a Glance
Cost of living: $1b package
$814m for a $350 per person cost-of-living payment for individuals earning under $70k
Extension to fuel excise duty and public transport cuts
Extension to the Healthy Homes scheme for low-income earners
$11m to tackle long term drivers of food prices
Improvements to child support payment process
Business and industry
$100m for a Business Growth Fund for SMEs
Continuation of the $200m Regional Strategic Partnership Fund
$60 to progress Income Insurance Scheme design
Industry Transformation plans:
$37m for Construction Sector Accord Transformation plan
$30m for Advanced Manufacturing Industry Transformation plan
$5m for Agritech Industry Transformation plan
$20m for Digital Technologies Transformation plan
$40m for Primary Industry Transformation plan
Health: $11.1 billion across the forecast period
$1.3b for health capital investments
$488m for strengthening primary and community care
$299m for Māori health services
Pharmac to get extra $191 million over the next two years
$220m operating and $100m capital for investments in data and digital infrastructure for the reforms and health systems
limate
$2.9b for the Emissions Reduction Plan
$1.2b to boost low carbon transport
$710m to reduce agri emissions
$330m for energy efficiency improvements for businesses
$16m for community-based renewable energy projects
$31m for a Māori climate action platform
Housing
$221m for Affordable Housing Fund
$1b to support public and transitional housing
$355m for redesigning emergency housing system
$75m for Homelessness Action Plan
Other
$349m for rail networks and rolling stock
$10.9b over five years contribution to the NZ Superannuation Fund, greater than required
$60m to improve broadband infrastructure in worst-served regions
Air New Zealand's recapitalisation plan to maintain the Government's 51% shareholding
