Budget 2025

The Government has announced its Budget for 2025. The taxation measures in the Budget are:

Introducing Investment Boost, a tax incentive that supports businesses with an immediate tax deduction for new assets first available for use on or after Budget Day (22 May 2025) – Investment Boost information sheet.
Changes to Working for Families, including raising the abatement threshold and the abatement rate, and income testing the first year of Best Start.
Changes to KiwiSaver including increasing the default employer and employee contribution rates, introducing the ability to opt for a temporary rate reduction, extending eligibility for receiving employer and government contributions to 16- and 17-year-olds, reducing the government contribution to KiwiSaver for all members and removing the government contribution for those earning over $180,000 a year.

Budget 2025 also includes an allocation of $35 million a year for Inland Revenue to carry out tax compliance and collection activities, and a continuation of funding of $26.5 million a year provided in Budget 2022 due to cease in June 2025.

Consultation has been launched on the following proposals:

In addition, the Government has announced its intention to proceed with reform previously consulted on:

Fringe benefit tax – options for change – proposals to modernise the rules and reduce compliance costs.
Employee share scheme timing issues – proposals to address a taxation timing issue for employee share schemes offered by start-up companies.

For complete coverage of these and other Budget announcements see the information available on the Budget website.