Politically safe, yet economically timid and fiscally vulnerable - that's the initial verdict on Bill English's second Budget.

The Budget avoids the potential trap of being too austere and fiscally virtuous too soon, when the recovery is still in a young, frost-tender stage.

New Zealanders earning over $50k will now be paying less tax than Australians after today's tax cuts.

"There is not much we would be critical of," says Business Roundtable executive director Roger Kerr. "The budget reveals sound steps but not step changes."

Owners of both commercial buildings and rental houses will no longer be able to claim depreciation on their investments.

NZ remains financially vulnerable, but there are positive signs emerging and the economy is on track to grow, Bill English says.

From October 1 all personal tax rates will be cut, ranging from 2 per cent for someone earning up to $14,000 to five per cent for high income earners.

Budget depreciation rule changes could smack the multibillion-dollar commercial property sector with most of a $1.3bn bill.

The scale of the leaky homes issue has been equated to a 'huge' natural disaster.

The Govt will today present a new package to local authorities on how to divvy up payment of the billions needed to repair leaky buildings.

Australian workers will have more money in their pockets, following Treasurer Wayne Swan's third Budget last night.