Budget 2024 - Our View

Budget 2024 - Our View

Moore Markhams

The New Zealand 2024 Budget was handed down on 30 May at 2pm.

The Budget for 2024 demonstrates fiscal responsibility, provides long-awaited tax relief for 83% of New Zealanders, and allocates funds towards enhancing frontline public services for improved outcomes.


Click here to view our Budget 2024 summary.


In Budget 2024, there is a combination of new expenditures, savings, and reallocation of resources towards frontline services, all managed within an annual operating allowance of $3.2 billion – the smallest allowance since Budget 2018. Tax relief is adequately financed, and expenditures are directed towards specific, efficient, and cost-effective initiatives.
As promised personal income tax thresholds were increased for the first time since 2010. Households with children will benefit by up to $150 per fortnight. Overall, around 1.9 million households will benefit by up to $102 per fortnight. The tax changes apply from 31 July 2024, apart from FamilyBoost which applies from 1 July 2024. Find out more about FamilyBoost by clicking here.


Tax relief in Budget 2024 puts $3.7 billion a year back into the pockets of New Zealanders. Tax relief is fully funded from savings and revenue initiatives, so the Government is not borrowing to fund this tax relief and it won’t add to inflation.
The increased funding for frontline health services, such as emergency departments, primary care, medicines, and public health, will help ensure that New Zealanders can access healthcare when needed. Budget 2024 invests an additional $8.15 billion in operating and capital funding for health services, including $665.1 million from reprioritisation, other savings, and revenue.

The Government is investing $2.93 billion extra operating and capital funding in schools and early childhood education, including $440.8 million of reprioritisation.

An additional $2.9 billion in operating and capital funding is being allocated by the Government towards enhancing law enforcement, with $497 million sourced from reprioritisation, savings, and revenue.
Budget 2024 sets the groundwork for an enhanced infrastructure system, with investments aimed at reducing traffic congestion, enhancing climate resilience, and providing modern school facilities for improved learning experiences for children in New Zealand.

New investment is on top of an existing capital pipeline, including programmes in delivery. More than $68 billion is forecast to be spent on infrastructure over the next five years.
After a greater and more persistent downturn in the economy, the treasury is forecasting inflation returning to the target band of 1-3% in 2025 and interest rates beginning to fall. Unemployment is forecast to peak at 5.2%.

The Government is committed to stopping the increase in net core crown debt, reducing it to between 20-40% of GDP and reducing crown expenses towards 30% of GDP. The operating balance is forecast to return to surplus in 2027/28.


  "Unremarkable – As Expected.
Budget 2024 is to “ensure tighter control over Government spending and to focus on high priority areas”.
Tax threshold changes will be funded partially by these. These thresholds have not moved for many years and is surprising that the increase in thresholds have not altered accordingly, with the passage of time.
The tax thresholds will however help, but this has not given any adequate advantage – in fact, it will in reality, probably not even cover the increase in the average cost of living.
Pretty sure the next year or two is not going to be pleasant financially for some."

Denise Gow
Moore Markhams Otago

  "The IRD report that they recoup around $1 billion or so from attempted tax evasion in any ordinary year. Under this budget, the Coalition government is pumping $147m into the IRD to enhance their ability to capture tax evasion.

The Government will no doubt have read into some estimates that put undiscovered annual evasion at up to seven times the figure identified.

That’s a sizeable difference that IRD will now be tasked with reducing in the coming years."

Andrew Steel
Moore Markhams Wellington Audit

  "We don’t expect the tax cuts to have huge impact on families or the economy, rather the effect being an ease on fiscal drag attributed to recent high inflation.

Many of our clients will be pleased to see interest on residential rental properties restored and easing of the brightline property rules to 2 years. The benefit may be partially offset for those owned in trusts by the new trust tax rate of 39%.

The removal of depreciation for commercial property owners will further impose a tax burden for those affected. 

Despite the spending cuts, Investment in infrastructure of $68 billion over the next five years will hopefully create a boost to the economy."

Kiran Bhikha
Moore Markhams Auckland