The Government wants to hear public views on a set of proposals for improving Working for Families. The intention is to make Working for Families more accurate which would help prevent families from going into debt.

The Taxation (Budget Measures) Bill (No 2) was passed today in the House. The Bill contains measures announced in the Government's 2025 Budget, including Investment Boost, KiwiSaver changes and changes to Working for Families.

The Minister of Finance today introduced the Taxation (Budget Measures) Bill (No 2) into the House.

The Bill contains measures announced in today’s Budget, including Investment Boost, KiwiSaver changes and changes to Working for Families. 

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. 

Inland Revenue has launched public consultation seeking feedback on whether New Zealand’s thin capitalisation settings might be discouraging foreign investors from investing in infrastructure projects in New Zealand. The issues paper considers two possible solutions to address the potential issue.