Tax cuts and a $1 billion support package for ongoing Cyclone Gabrielle recovery work are among the highlights for Hawke’s Bay in Budget 2024.
The Budget - which each year sets out the Government’s spending plans - was released on Thursday afternoon by new Finance Minister Nicola Willis in Parliament.
Hawke’s Bay Today has dissected the biggest winners and losers from the region, breaking down where the money will go and who benefits from the $3.7 billion worth of tax cuts.
Income earners and young families
Tax cuts were in the spotlight during Budget 2024, marking the first reductions in personal income tax since 2010.
Simply put, income tax brackets have been adjusted and will take effect at the end of July - reducing the amount of tax people pay.
Those tax cuts will range from $4 to $40 a fortnight for all workers on more than $14,000.
“This is a Budget for the squeezed middle of New Zealand,” Willis announced.
The Working for Families in-work tax credit will also increase, giving low- and middle-income families with children up to a further $50 a fortnight.
The Independent Earner Tax Credit (IETC) of up to $20 a week has also been expanded for wage earners who earn up to $70,000, a big jump from the previous $48,000 cap.
An online calculator is available on the Herald website for people to check how they will be impacted.
Central Hawke’s Bay Budget Services manager Carmel Thompson said it was good news for residents as “any tax cuts will help”.
She said there had been an increasing number of people seeking budget advice in recent years during the living costs crisis, and they had referred more clients to food support services.
She said any relief would “absolutely” help people cover bills including groceries.
“Food is the first thing to go for people if they are trying to pay their bills,” she said.
“We are lucky that we have both Foodbank and Food Basket down here [in CHB].”
Roads and bridges
More than $1b was announced in the Budget to support the rebuild from Cyclone Gabrielle and the Auckland floods, which caused enormous damage in early 2023.
Most of that ($609m) will go toward completing state highway recovery works, and $330m (over two years) will be put toward fixing local roads managed by councils.
Road and bridge repairs are an enormous expense for Hawke’s Bay councils who predict cyclone repairs will continue for a decade.
“Whilst this is a positive start, we now need to work through the detail around how much is coming to Hawke’s Bay and what this will cover,” Hastings Mayor Sandra Hazlehurst said.
Federated Farmers Hawke’s Bay also welcomed the package stating adequate roading is crucial for farming.
A further $200 million has been allocated for flood resilience infrastructure such as stop banks nationally, under the Regional Infrastructure Fund.
Meanwhile, a further $28m of funding has gone to the Temporary Accommodation Service (TAS) which helps households displaced by the cyclone.
Ten million dollars will also go toward further silt and debris clearing on residential and commercial properties in Hawke’s Bay.
Drugs
The Government has boosted Pharmac’s budget by $1.77b over the next four years (about $450m per year).
Pharmac subsidise a long list of important drugs to make them more accessible for Kiwis.
Hawke’s Bay Hospital
Hawke’s Bay Hospital remains in need of a significant upgrade.
The Budget did not include funding for a rebuild or major upgrade to that hospital.
“It is extremely disappointing,” NZ Nurses Organisation kaiwhakahaere and co-leader Kerri Nuku, from Hawke’s Bay, said.
“If you have ever been a patient in those wards in the tower blocks in summer, where there is no air conditioning and they are having to rely on fans, it is absolutely disappointing there seems to be no budget to support a rebuild.”
People on multiple medications
The $5 co-payment for prescription medication is returning.
That fee was scrapped in last year’s Budget but will be reinstated for people 14 years and over.
“Prescriptions will continue to be free for people with community services cards, people under 14 years of age, and people aged 65 and over,” Health Minister Shane Reti said.
Public sector workers
Thousands of public sector jobs have gone, or are set go, as part of the Coalition Government’s cost-cutting measures.
Education
Budget 2024 included a $3b package for education including $1.5b for new schools and classrooms and upgrades.
It is unclear how much of that money will go toward Hawke’s Bay at this stage.
Four-laning the Hawke’s Bay Expressway
Napier Mayor Kirsten Wise said the region was looking forward to more details about how and when projects like the four-laning of Hawke’s Bay Expressway will be delivered, following Budget 2024.
“Our focus is getting the region back on its feet and moving again.”
Promisingly, money has been set aside for the 17 new Roads of National Significance, of which the Hawke’s Bay Expressway is one, as part of a wider $2.68 billion package for roads, rail, and public transport infrastructure.
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.
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