Insights from Budget 2025 and our post-Budget breakfast
Kia ora,
On 22 May, the Government released its latest budget. While Budget 2025 doesn’t offer big surprises, there are a few key points to know for our sector.
Below, we unpack what the Budget means for you and recap the inaugural post-Budget breakfast we hosted with Minister of Finance Hon Nicola Willis and Minster for Building and Construction Hon Chris Penk.
Unpacking Budget 2025
Investment in core infrastructure
The Government has committed $6.8 billion in new capital investment. These won’t fix everything, but they will help keep construction work going. Capital investments include:
- Hospitals: $1 billion on Nelson Hospital and Wellington ED upgrades.
- Schools: Over $700 million for new classrooms and school expansions.
- Rail upgrades: Over $460 million for critical rail infrastructure upgrades.
- Housing: $440 million for social housing and affordable rentals.
Business support
The new Investment Boost is also good news. This is an investment tax incentive that allows businesses to deduct 20% of the cost of new assets upfront, on top of normal depreciation.
This initiative helps reduce business costs and supports investment in productivity – be it utes, tools, or new premises – and signals the Government’s intent to support, not just regulate, the sector. For businesses looking to invest in equipment or machinery, this provides a bit of breathing room.
A cautious economic climate
We all know these are tight economic times. The Government doesn’t expect to return to a surplus until 2029, with debt set to peak at 46% of GDP before slowly coming down.
To help get things moving, the Reserve Bank of New Zealand (RBNZ) has cut the Official Cash Rate (OCR) by another 25 basis points, bringing it down to 3.25%. This marks the sixth cut in a row, aimed at encouraging people to borrow and invest. Inflation remains steady at 2.5%, comfortably within the RBNZ’s target range of 1-3%.
Economic growth is expected to slow slightly, with a forecast of 2.9% next year. Economists anticipate more OCR cuts in the coming months, though much depends on how things play out overseas – especially around global trade and conflict.
Builders around the country are reporting more enquiries, but not all of those are converting into confirmed jobs. The residential market is still soft, and commercial work is patchy depending on location and sector.
This Budget won’t flip the switch, but it gives some indication that the Government is still committed to keeping work going.
A sector ready to work
Despite ongoing uncertainty, our members are ready to get on with the job. You’ve weathered a tough few years and shown real resilience. This Budget offers some small wins, but we know more is needed to lift confidence and create steady, reliable work.
There are encouraging signs from the Minister for Building and Construction, with progress underway on key issues like risk-based consenting and broader productivity reforms. These are important steps in the right direction, and we’re pleased to see the Minister’s commitment.
But they will need ongoing focus and follow-through – because without it, delivery will remain at risk from red tape and inefficiencies.
We know builders are looking for a clear pipeline of work, and we’ll keep advocating for what you need – practical policies, fewer barriers, and the right support to run your business and keep building the homes, places, and communities New Zealand needs.
We’re here to help
Remember, as a Master Builders member, you have access to a rich suite of tools and services to help you run a great building business.
This includes marketing kits, expert advice, training, discounts, wellbeing support, and more. Just visit Offsite – our member website.
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Post-Budget breakfast: a Constructive conversation
Minister of Finance Hon Nicola Willis, Master Builders CEO Ankit Sharma, and Master Builders member Brett Russell.
On Friday 13 June, as part of our industry-led Constructive event series, we hosted an inaugural post-Budget breakfast.
Constructive event series
The breakfast was well attended, with over 100 sector leaders coming together at Eden Park for a focused, solutions-driven conversation about what Budget 2025 means for our industry.
We were joined by Hon Nicola Willis (Minister of Finance) and Hon Chris Penk (Minister for Building and Construction), who spoke about the Government’s commitment to delivering more homes, better infrastructure, and cutting unnecessary red tape. They also took the time to hear directly from those in the room – showing a genuine interest in engaging with the sector.
Minister Willis emphasised that the Government is working to get the economy moving faster and unlock a stronger pipeline of work. She highlighted the Investment Boost as a key way to build confidence – especially for commercial developments – and noted that a 10-year infrastructure plan would be released later this year to give more certainty.
Minister Penk outlined planned consenting reforms, including options like self-certification and remote consenting for trusted builders, alongside changes to liability settings and consumer protections.
We also welcomed Members of Parliament Hon Melissa Lee, Nancy Lu and Dr Carlos Chung, whose attendance reinforced how central our industry is to New Zealand’s future.
Minister for Building and Construction Hon Chris Penk.
The event marked the beginning of what we hope will be a regular, high-level conversation between Government and industry – a space to tackle the big issues like investment certainty, consenting reform, workforce skills, procurement and innovation.
This event was a powerful reminder of what’s possible when Government and industry sit down together with a shared focus. We’re proud to have created this platform for real conversation and practical solutions.
Ngā mihi,
Master Builders