Master Builders back Budget 2025’s focus on infrastructure and business investment

22 May 2025

Master Builders welcomes the Government’s commitment to essential infrastructure investment announced today in Budget 2025. The focus on delivery over policy and support for business investment is a pragmatic step towards long-term recovery and resilience.

While Budget 2025 reflects the realities of a fiscally constrained environment, it signals cautious progress that leans heavily on the private sector to maintain momentum in the building and construction sector. The increases in capital investment are encouraging and a focus on delivery is welcomed alongside ongoing work to ensure a clear pipeline of projects and well executed procurement.

Chief Executive Ankit Sharma said the sector is well-placed to support Government ambitions and is ready to help turn plans into delivery.

“Builders across Aotearoa are ready to deliver. Budget 2025 sets out positive intentions, particularly in housing and infrastructure delivery. Now, our shared focus should be on delivering efficiently and effectively, for the benefit of our communities and economy.”

Sharma added that the visibility and execution of the public-sector project pipeline would be crucial. “Procurement matters. The better we plan and contract, the better outcomes we’ll achieve. Fair risk allocation, value-based procurement, and strong partnerships are key.”

The $6.8 billion capital programme - including investments in health, education, and a new housing fund - is welcomed by the sector, particularly the planned development of Nelson Hospital, Wellington Emergency Department, and new school infrastructure. The reinstatement of the Investment Boost tax incentive also provides confidence for commercial decision-making.

Sharma acknowledged the tighter policy settings and noted the growing importance of private sector leadership in areas like innovation and capability development.

“The increasing cost of doing business is a critical issue for our members. They will welcome the Government’s investment boost allowing businesses to deduct 20% of the cost of new assets immediately from their taxable income on top of normal depreciation.

“The sector has shown adaptability in recent years. Now we’re focused on sustainable growth. We look forward to working closely with government to deliver the Budget’s vision and ensure our sector continues to contribute to a resilient, productive Aotearoa.”

Master Builders remains committed to supporting the successful delivery of Budget 2025 and helping lift construction sector productivity in partnership with government.