May Newsletter - 2025 Budget Edition

Sasha Curin
May 30
3 min read

2025 Budget Breakdown: What It Means for You

The Government has just released the 2025 Budget, and it includes some significant changes for business owners, families, and trusts.

From a new tax incentive for asset purchases, to KiwiSaver adjustments and targeted cost-of-living support, this month's newsletter highlights the announcements most likely to affect you.

If you’re running a business, managing a trust, or planning for retirement, it’s worth understanding what’s changing and when.

2025 Budget Summary

The New Zealand Government has announced the 2025 Budget, focusing on growth, investment, and cost-of-living support. Here are the key takeaways for businesses and families:

1. Investment Boost – Tax Incentive for Businesses

A major new tax break for businesses:

The Government has introduced a new tax incentive called Investment Boost, designed to encourage business investment and stimulate economic growth. From 22 May 2025, businesses will be able to claim an immediate tax deduction of 20% of the value of new assets such as machinery, tools, and equipment, on top of the usual depreciation. This is aimed at improving cashflow, making more investment opportunities financially viable, and ultimately lifting productivity, wages, and the economy over the long term.

2. KiwiSaver Changes

Several changes made to encourage saving and reduce costs to the Government:

Default contribution rates (employer & employee) will increase: From 3% to 3.5% (April 2026), then to 4% (April 2028).
Opt-down option: Employees can choose to stay at 3% temporarily.
16–17 year-olds will now receive employer and Government contributions.
Government contributions will be halved from 50 cents to 25 cents per dollar contributed, and up to a maximum of $260.72 from 1 July 2025.
High earners (over $180k/year) lose Government Kiwisaver contribution from July 2025.

3. Working for Families Changes

Higher income threshold and steeper abatement rate to better target lower-income households.

Best Start tax credit will now be income-tested in the first year (already tested in years 2 and 3).
Around 142,000 families expected to receive an average of $14 extra per fortnight

4. Cost of Living Support

Prescription lengths for long-term medications will increase from three months to twelve months.
Rates rebate eligibility will be expanded to benefit up to 66,000 more lower-income households, especially SuperGold cardholders.

5. Compliance & Tax Collection

$35 million/year for Inland Revenue to improve compliance and tax collection.
Ongoing $26.5 million/year from Budget 2022 continues.

You can read the full Budget 2025 At a Glance document on the Treasury website:

Budget Website

13 Tactics for Winners: A Tip to Succeed

We’ve created a guide called “13 Tactics for Winners” to help you succeed in business and life. It’s packed with practical advice on setting goals, staying motivated, and overcoming challenges.

This month, we’re highlighting one tactic from the guide to get you started:

This Month's Tactic: Accept Responsibility

Success lies in your hands. As the saying goes, "If it's going to be, it's up to me." Taking ownership of your outcomes is both empowering and inspiring – it means you always have the power to affect change.

Ask yourself:

What can you do today to move closer to your goals?
How can you empower your team to take ownership?

We'll share another tactic next month to keep you inspired. If you'd like to explore all 13 tactics now, you can download the full guide below.

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