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Budget 2014: Australia vs. New Zealand

15 May 2014

Budget 2014: Australia vs. New Zealand

“Comparing New Zealand Budget today with Australia’s on Tuesday makes an interesting contrast,” PwC Partner Richard Forgan says.

“Both governments focused on expanding the economic capacity of the nations with support for innovation, science, R&D, defence and infrastructure. But about there the similarities end.”

“New Zealand has a surplus, Australia a deficit.

New Zealand has expanded welfare a little, Australia has cut it back.

“New Zealand is increasing free GP visits for children up to 13, Australia introduced a co-charge of $7 for GP visits.

“Australia increased tax and medicare levies, New Zealand cut ACC levies teased us with hints of tax cuts.

“New Zealand signalled more investment in health and education, Australia signalled cuts in the Federal support the states in these areas.

“These contrasts demonstrate the benefit of four or five years of sensible fiscal balance between debt, spending and managing an economy through the Global Financial Crisis," concludes Mr Forgan.

ENDS

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