Budget 2020: What it means for you
14 May 2020
This year’s budget is a once in a generation budget. Its focus is on managing the economic effects of COVID-19 on New Zealand. We’ve highlighted areas which are beneficial for our members and the wider building and construction sector as well as provided details of other major announcements in the Budget.
There is a $50 billion Response to Recovery Fund over the next 4 years. The Government has spent $14 billion dollars of it in COVID-19 Economic Response Package prior to the Budget. Today’s budget allocates another $16 billion and leaves another $20 billion for future allocation. The major allocations from today include:
Extending the Wage Subsidy
- A further $3.2 billion allocated for the wage subsidy.
- Businesses who can prove they have had a 50% decrease in revenue year on year can access a further 8 weeks of the subsidy.
- The subsidy amount remains the same; $585 for a fulltime employee and $350 for a part-time employee.
Housing and Infrastructure
- The Government will roll out a home building programme of 8000 new state houses over the next 4 years. There will be 6000 State houses built and another 2000 transitional houses.
- $5 billion of building through Kainga Ora borrowing programme and investment in Transitional Housing.
- An additional $3 billion contingency for additional infrastructure investment (on top of the earlier $12 billion NZ Upgrade Programme announced in January). This will include projects identified through the Infrastructure Reference Group.
- The Budget is funding $1.6 billion in a Trades and Apprentice Package to provides opportunities for people of all ages to receive trades training.
- This will include financial support for businesses to retain their apprentices, free apprenticeships and training in targeted critical industries and funding increased enrolments on tertiary education and training.
- Building and construction identified as a critical trade.
- $275 million allocated for RoVE with the setting up of Workforce Development Councils and Skill Leadership Groups.
- $5.6 billion in health investment; including $750 million in new capital infrastructure investment
- Around $1 billion to improve transport across the country, including around $400 million capital investment to replace the Interislander ferries and $400 million for rail.
- $1 billion environmental package (including $433 million investment in regional environmental projects e.g. wetlands, removing sediment etc, including in the Kaipara catchment) while around $300 million will be spent on pest eradication and controlling wilding pines. A further $200 million on Department of Conservation track upgraders etc.
- $400 million injection for Tourism Sector recovery Plan, including transition programme, a fund to ensure key tourism assets survive, and domestic tourism marketing campaign and a public/private taskforce to shape the future of the industry.