Budget 2021 was all about big spending on benefits, health, and infrastructure. With some critics saying the Government was spending too little and others saying it was racking up too much debt, Finance Minister Grant Roberston aimed to find a balance between the two.
On 20 May 2021, the Minister of Finance, the Hon Grant Robertson, delivered Budget 2021. The Minister announced that the weekly main benefit rates will increase by between $32 and $55 per adult to bring these in line with a key recommendation of the Welfare Expert Advisory Group. The increases will be implemented in 2 stages: an immediate $20 per adult per week increase on 1 July 2021 and a second increase on 1 April 2022. For families with children, the main benefit rates will be increased by a further $15 per adult per week from 1 April 2022.
Not much for businesses
For most Kiwi business owners, there were no substantial new initiatives. The tourism industry will receive another $200 million from the Covid-19 fund, while another $44 million has been earmarked for digital training programmes for small businesses.
Budget spending is likely to boost the economy
Increases to benefits and massive investment in infrastructure are both likely to stimulate the economy significantly over the next few years. This is great news for the construction sector, and the health and education sectors will be getting some major new assets.
Questions about how the Budget impacts your business?
If your business is in the tourism, construction health, or education sector, you may be on the cusp of rapid growth in your industry. We can help you position yourself to make the most of it, so give us a call or send us an email and let’s talk.