BUDGET 2017 OVERVIEW:
1: Families Income $2bil package
Minister of Finance Steven Joyce uses an example of a family with two parents and two children under 13 years benefiting from this year's $2 billion Families Income package.
Mr Joyce says, “These changes mean, for example, a couple with two children under 13 and one partner working earning $55,000 will gain $41 per week plus any increase to their Accommodation Supplement.”
The $2bil per year Family Incomes Package will make changes to tax thresholds, Working for Families and the Accommodation Supplement to help Kiwi families get ahead.
Joyce also says this package will benefit around 1.3 million New Zealand families on average by $26 per week.
“The measures in this budget are expected to lift 20,000 households above the threshold for severe housing stress, and reduce the number of children living in families receiving less than half of the median income by around 50,000,” says Mr Joyce.
From April, 1 2018:
An increase of $14,000 income tax threshold to $22,000
An increase of $48,000 income tax threshold to $52,000
An increase of Family Tax Credit rates for young children to those for children aged 16-18
An increase of Weekly Accommodation Benefit payments by up to $20 for eligible Student Allowance recipients
2: Law and Order to get $2bil investment
The Government announced in today's Budget there will be $1.24 billion of new operating funding over four years and $785.6 million of capital funding to be injected into law and order initiatives.
Police Minister Paula Bennett says, "The extra investment in Budget 2017 includes the $503.8 million Safer Communities Package which was announced earlier this year and will deliver an additional 1,125 police staff."
Minister of Justice and Minister for Courts Amy Adams says, "Budget 2017 provides an additional $1.52 billion to enable the justice sector to improve services and further reduce the impact on crime on New Zealanders."
"This funding underpins the Government's focus on preventing crime, reducing reoffending and better supporting victims. It includes $145.8 million of operating funding over four years and $20.2 million in 2016/17 to enable Justice and Courts to provide an enhanced level of service to deliver better outcomes for our growing population," says Ms Adams.
Minister of Corrections Louise Upston says, "To support Corrections to deliver its core services and reduce reoffending, Budget 2017 will set aside $255.9 million of operating funding over four years and $763.3 million in capital funding for more prison capacity. While we're focused on reducing offending, we also want to ensure we have enough prison beds to keep the worst offenders off our streets."
“We'll also upgrade infrastructure to enhance the safety of staff, prisoners, and the public," says Upston.
Other key initiatives include:
$32.9mil over the next four years for burglary prevention.
$13.9mil over the next four years to reduce reoffending, targeted at high risk young offenders.
$40.2mil over the next four years and $2.1 million capital for investment in anti-money laundering initiatives.
$11.9mil over the next two years for additional security personnel across New Zealand's court system.
$5.5mil over the next two years to continue the Iwi/Community Panels pilot.
$51.6mil over the next four years to better manage offenders serving sentences and orders in the community, and to support the judiciary and Parole Board to make informed risk-based sentencing and parole decisions.
$30.2mil over the next four years to improve the way prisoners at risk of self-harm and suicide are managed in prison, and to increase access to industry, treatment and learning interventions.
$1.4mil of operating funding over the next four years and $840,000 capital to provide the Serious Fraud Office with an integrated case and evidence management system to enable better analysis and management of complex evidence and data.
3: Public Services will get $7bil in Budget 2017
$3.9bil for New Zealand’s Health Sector:
including $1.76bil direct new money for District Health Boards
including $1.54bil for care and support workers, plus increased investments in disability support services, ambulance services, pharmaceuticals, mental health services, elective surgery and primary health care.
NB: Does not account for $62mil
$1.1bil in New Zealand’s Education Sector:
$767mil of that for funding roll growth and demand
$61mil increase in operational grant funding for schools
$35mil in targeted additional funding for early childhood centres
$1.2bil for Law and Order:
including a 10% increase in police staff numbers and funding to meet increased demand for justice, courts and Corrections services, plus new initiatives in burglary prevention, reducing youth reoffending, and supporting at-risk prisoners.
$803mil for other Social Services:
including $184.7mil for social housing services,
$64.4mil for supporting people into employment,
$424.4mil for the new Ministry for Vulnerable Children Oranga Tamariki.
Budget 2017 includes $321mil in funding for fourteen cross-agency Social Investment initiatives that are designed to tackle long term social issues for vulnerable New Zealanders.
4: $4bil in new Capital Infrastructure:
$812mil for the reinstatement of State Highway One north and south of Kaikōura.
$450mil for rail infrastructure and rolling stock for KiwiRail's rail freight business,
$436mil for the first stage of Auckland's City Rail Link
$98.4mil for upgrades to Wellington's commuter rail network.
$392.4mil for six new schools, two school expansions, 11 special education satellite units, and 305 additional classrooms nationwide.
$150mil in additional capital towards the new building programme for hospitals around New Zealand.
$576mil for the Defence Force for new equipment and the commencement of the upgrading of the Defence Estate.
$763.3mil for new prison capacity around New Zealand.
$100mil to expand the Government's programme to release Crown land for housing development around the country.
$63mil for investing in new water storage infrastructure in regional New Zealand.
5: Māori Development $93mil
$10mil boost to Whānau Ora support across the country.
$21mil for Māori language initiatives to support the continued revitalisation of te reo and Māori culture.
$10mil for New Zealand Māori Tourism – Te Tāpoi Ararau - will allow it to extend support for Māori tourism operators.