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Improving the lives of all New Zealanders

Budget 2010: Improving the lives of all New Zealanders

This year's Budget was designed to create jobs, boost our economy and help Kiwi families get ahead. It also keeps us on track to reverse the deficit and get the Budget back into surplus.

Budget 2010 delivered the most sweeping changes to our tax system in 25 years.

Across the board tax cuts will leave a single person on the average wage better off by $15 per week and a family with two kids on the average wage better off by around $25 per week.

It will also mean that 73% of income earners will now pay a top tax rate of only 17.5%.

For hard working New Zealanders struggling to get ahead this will make a significant difference.

There will be a small increase in GST from 12.5 to 15%. Payments for Superannuation, Working for Families, benefits and student allowances will all increase to compensate for this.

In recent years unsustainable increases in government spending have led to rising debt. We are tackling this issue head-on and as a result government accounts are set to return to surplus 3 years sooner than predicted last year.

To remain internationally competitive, we are decreasing company tax rates to 28%. We recognise the difficulties that small business owners face, and it is important to give them a break.

We are helping families and the most vulnerable by investing hundreds of millions of dollars more in priority social services such as hospitals, schools, and safer communities.

We're putting an extra $2.1 billion into frontline healthcare over the next four years, and an extra $1.4 billion for better schools and early childhood education services. We're investing $321 million over four years in new initiatives in science, research, and technology, which will be of benefit to our economy.

Budget 2010 continues this government's commitment to reviving our economy and helping New Zealanders get ahead.


Improving frontline health services for patients

• $2.1 billion extra for health priorities, including $512m extra for 2010/11
• $1.4b extra for District Health Boards
• $59.5b for extra Elective Surgeries
• $93m extra for Disability Services
• $24m for a national Bowel Cancer screening pilot programme

Helping young New Zealanders reach their potential and succeed

• $1.4 billion extra for better schooling and early childhood education
• $107m extra for Early Childhood Education and continued funding for 20 hours
ECE - to a total of $1.3b in 2010/11
• $48.3m to build Ultra-fast Broadband Support for schools

Research, Science and Technology
Boosting science to help faster economic growth

• $321 million for new initiatives, including $234m for supporting business research
and development, including technology development grants for firms doing R&D

Better frontline support for those in need

• $90.5 into a fund for Non-Government Organisations to deliver extra high-
quality services
• $134.3m for Whanau Ora to help families in need
• $26.7m in 2010/11 to expand Job Opportunities programme

Growing the supply of affordable housing

• $350,000 new Welcome Home Loan limit, raised from $280,000 for first home
buyers in higher priced areas

Boosting our economy, and creating jobs

• $1.45 billion for projects in2010/11 - the second year of a five year $7.5b
infrastructure programme
• $200m for the roll-out of Ultra-Fast Broadband
• $10.7b over 10 years for State Highways. $3.3b over 5 years to upgrade the
National Grid


• $75.9m for a new Joint Border Management System to replace ageing border
clearance systems run by MAF & Customs.
• 40,000 Kiwi households have joined Warm Up New Zealand: Heat Smart. We are
investing $347.3m to retrofit more than 180,000 homes with insulation and clean
• 350 extra Police already on the street towards 600 new frontline police by the
end of 2011.


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