This report sets out the New Zealand Council of Trade Unions Te Kauae Kaimahi's analysis of Budget 2025. It covers the major decisions made at this Budget, and how they might affect workers.
This Budget is funded above all by the gutting of the pay equity system, the halving of the government's contribution to people's Kiwisaver accounts, and other cuts that will disproportionality impact women, welfare recipients, and working households.
The Minister of Finance argues that the tight fiscal situation makes this inevitable. But none of these choices the government has made are forced. The government could have funded its spending initiatives by raising new taxes on the wealthiest New Zealanders. It could have not decided to give billions away to those who already have much, while cutting services for those with real and pressing needs.
Budget 2025 also leaves New Zealand's most significant structural challenges unaddressed. There is no meaningful movement on closing the infrastructure deficit; no solution to our health workforce shortage; no willingness to reduce child poverty or to address the housing crisis; and absolutely zero investment made in decarbonisation and climate adaptation. The coalition government continues to kick the can down the road on these challenges, all while making life steadily more difficult for New Zealanders who have the least.
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