-
Budget 2011 - Source: ONE News -
Watch Video
-
Related
Key points from the 2011 Budget:
KiwiSaver
Members will have to pay 3% of their earnings as a
starting point, a rise of 1%, though the sweetener for workers is
that employers will have to match it.
The government will keep its $1000 kick start but its maximum contribution of $20 a week, in the form of a tax credit, will be slashed to $10 a week as it cuts its support by $2.6 billion over four years.
Just over 43% of all contributions to date have been funded by the government, primarily through Member Tax Credit and Kick Start payments.
A 30-year-old who earns $50,000 and joins KiwiSaver on April 1, 2013 and contributes the new minimum rate of 3% of his gross wage - $28.77 a week - will have about $190,000 in their KiwiSaver acount by the age of 65.
Health
The health sector will receive $1.7 billion new operating
and $40 million capital funding over the next four years.
$18 million will be put aside for extra medical training places and $68 million for more elective surgery to reduce waiting times.
Education
An additional $1.3 billion new operating and $109 million capital
funding for the education sector.
Education Minister Anne Tolley said spending in education and tertiary education would "rise to a record $12.2 billion in 2011/12".
That includes an extra $1.4 billion over four years for schools and early childhood education, but no new spending has been allocated for tertiary education.
Working for Families
Tax credits this year will cost the government $2.8
billion - about double the amount in 2005/06. By 2014/15 the figure
will have reduced to $2.6 billion.
The government says changes, which will be staggered from April 1, next year, will be "better targeted to the most vulnerable families".
The threshold for incomes will be lowered slightly from $36,827 to $35,000. Families with incomes above this threshold will receive fewer tax credits.
Families below the new income threshold will receive an extra $7 a week.
However, a sole parent on $90,000 a year with two young children, for example, will have a weekly reduction of just over $11. A couple with a combined family income of $40,000 a year and three children will receive an extra $4.12 a week.
A slightly higher abatement rate of 25 cents in the dollar, compared to the current 20 cents in the dollar.
The changes will be staggered on April 1, 2012, 2014, 2016 and 2018.
Student loans
Restricting to student loan eligibility for those with an
overdue student loan repayment obligation of $500 or more who are
in default for more than one year.
Restricting borrowing for people aged 55 and over to tuition fees only.
Removing the entitlement for part time full year students to borrow for course related costs.
Suspending inflation adjustments to the student loan repayment threshold until April 1, 2015.
Shortening the repayment holiday for overseas based borrowers from three years to one year and requiring borrowers to apply for the repayment holiday and provide a New Zealand based contact person before they go overseas.
The changes will bring savings of $277 million over five years and capital savings of $170 million.
Canterbury Earthquake Recovery Fund
A $5.5 billion provision with $740 million being funded from
government agencies' existing budgets.
The money will go towards funding the rebuilding of water and roading infrastructure, as well as damaged schools and hospitals.
State sector
The government will make "efficiency savings" across the state
sector of $980 million over three years.
Maori
New funding for Maori education will see $9 million over four years
to support iwi to develop school and community-based language
initiatives.
There will be $8 million over four years to "realign" Kura transport help with mainstream schools.
Funding will be reprioritised, with $60 million over four years to build new kura kaupapa Maori and upgrade existing school buildings; $6.5 million to expand family based literacy programmes to decile one, two and three schools; $17 million over four years to allow an extra 20 schools to participate in the Te Kotahitanga teacher training programme.
Maori Affairs Minister Pita Sharples also said $2 million had been found to "support Maori engagement with the constitutional review".
"The constitutional is potentially the most important advance for Maori in a generation," he said.
Mixed ownership
The government hopes to generate up to $7 billion by
extending the mixed ownership model to four state owned electricity
companies and by reducing its majority shareholding in Air New
Zealand.
The electricity companies are: Mighty River Power, Meridian, Genesis and Solid Energy.
The government will own more than 51% of each company.
The changes, subject to the election result, would take place over three to five years from 2012.
Justice
There will be $157 million in new funding over the next two
years.
$34.1 million in 2010/11 and $69.4million in 2011/12 to "address shortfalls in legal aid".
$4 million in 2011/12 for Community Law Centres.
$22.5 million over two years and a capital injection of $3.2 million for Crown prosecution costs.
$8.3 million over two years for "investigating and prosecuting complex or serious crime".
$1 million for the constitutional review, which is part of the confidence and supply agreement with the Maori Party.
$103.5 million of new spending for legal aid.
Have your say on Budget 2011 below.
Add a Comment:
Post new commentchrisinus said on 2011-06-06 @ 10:28 NZDT: Report abusive post
Most of the students who are overseas are there because they're having problems living in NZ with low salaries and very high taxes but rip-off costs of living. If you want to keep them here, NZ needs to increase salaries and taxes to match those in Australia and UK. Then they would continue to pay their loans and new laws wouldn't be necessary. KEEP UP WITH THE WORLD, NZ!!!
JayKay22 said on 2011-05-21 @ 21:12 NZDT: Report abusive post
Why take away all course related costs for part-time students - why not simply halve it instead - make the entitlement $500 instead of $1000. That makes far more sense.
pioneer said on 2011-05-20 @ 12:04 NZDT: Report abusive post
TO MANY FAMILIES WANT HAND OUTS. THE FAMILY ON TELEVISION LAST NIGHT HAD 5 CHILDREN AND A DOG THE CHILDREN WERE OLD ENOUGH FOR THE MOTHER TO GET A JOB PLUS SHE HAD SPENT MONEY ON A STUPID TATTOO IF YOU CAN'T AFFORD CHILDREN DON'T BREED AND EXPECT THE COUNTRY TO BORROW FROM CHINA AND jAPAN FOR THEM. WE HAD 3 CHILDREN I WORKED AT NIGHT AND IN THE WEEKEND WHILE THEY WERE BABIES UNTIL THEY WENT TO SCHOOL THEN WORKED PARTIME 1 IS A SOLICITOR,2 A CEO IN AUS,3 BUSINESS MANAGER
big2al said on 2011-05-20 @ 09:06 NZDT: Report abusive post
As usual with a Nat govt, the only ideas they can come up with are selling the family jewels (SOE's) which we already know is only a short term gain & a long term loss (NZ Rail) and cutting public services. A billion dollars lol, where do they think the money is coming from? Essential services & jobs will be cut, which will lead to more spending pressure on WINZ as more unemployment benefits are paid. No matter how this Govt cleans it up, it is the poor & middle income earners who suffer.
smithy said on 2011-05-20 @ 07:48 NZDT: Report abusive post
It may lack flair and inspiration but I think it is a very sensible budget given the economic climate. I dread to think where we would be with Labour in charge who have not yet made a valid argument on any subject