Business leaders gathered for our Post-Budget Lunch to hear Finance Minister Nicola Willis outline Budget 2025 and what it means for Canterbury. The event featured insightful discussion, valuable connections, and a deep dive into the government’s economic priorities.
Recap: Hon Nicola Willis' Post-Budget Lunch Speech
At Business Canterbury’s recent Post-Budget Lunch, Finance Minister Nicola Willis laid out the government’s economic vision for New Zealand and Canterbury’s place in it.
Budget 2025 focuses on responsible fiscal management while setting the stage for long-term recovery and investment. The standout announcement was the Investment Boost — a new tax incentive designed to encourage business capital investment. Under the scheme, businesses that go out today and buy machinery or tools or equipment or vehicles or technology can immediately deduct 20 per cent of that cost from taxable income, meaning a much lower tax bill. Early signs suggest the move is already driving renewed confidence and forward planning in the business community.
The Minister pointed to improving economic indicators: inflation is easing, interest rates are on the way down, and growth is forecast to pick up in the second half of the year. Wages are also expected to outpace inflation, improving real income for New Zealanders.
However, the Minister didn’t shy away from the fiscal realities. Public debt now sits at 41.7% of GDP — more than double 2019 levels — with annual interest costs forecast to rise from $9 billion to $12 billion over the next four years. Budget 2025 aims to curb this trajectory while maintaining momentum on key initiatives.
Other headline moves include planned changes to KiwiSaver, which will gradually increase default contribution rates while adjusting government incentives, and a revamped approach to pay equity that delivers $13 billion in savings.
What else is on the radar?
The budget includes the creation of Invest New Zealand, a new agency focused on attracting international talent and capital, and a series of tax and policy changes aimed at supporting startups, innovation, and infrastructure development. Science and technology funding is being refocused toward growth and commercialisation.
For Canterbury, specific commitments include new classrooms at 16 schools, land acquisition for new builds in Rolleston and Prebbleton, and upgrades to key transport corridors, including the Belfast–Pegasus motorway.
Business Canterbury’s latest survey reflects cautious optimism across the region, with local businesses outperforming national averages on growth, productivity, and resilience. As the Minister noted, Canterbury is well-positioned and ready to play a leading role in New Zealand’s economic future.
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