Budget 2013: Main points

04:45, May 16 2013

The main points of Budget 2013 are:

•New spending of $900 million

•On track to return to surplus by 2014-15 and bring net core Crown debt down to no higher that 20 per cent of GDP by 2020

•40 per cent lower ACC levy rates for households and business. Levy reductions of about $300m in 2014-15, increasing to about $1 billion in 2015-16

•Government contributions to the Superannuation Fund delayed for two years until 2020-21

•New rules to prevent banks from excessive lending in the housing sector


•Housing package to increase affordability and access, includes a trial of a "Warrant of Fitness" for Housing New Zealand properties

•Government reserves the right to take over the consent process in areas of severe housing unaffordability where it cannot reach a deal with councils

•Meridian will be the next energy company to be partially privatised, in the second half of this year

•Confirms an extra $2b towards the Christchurch rebuild

•$100m a year "growth package" for business, tourism and marketing New Zealand to international students

•Removes student loan eligibility for the over 65s and placing limits on those over 40

•Crack down on overseas student loan debtors

•Confirms that $1.5b from the Mighty River Power share float will be spent on schools, two Christchurch hospitals, Kiwi Rail ($94m) and irrigation ($80m)

•$1.6b to health over four years - the largest Budget increase. $250m will go directly to DHBs to meet population and inflation pressures, $70m will go to aged care and dementia services, $35.5m extra to diabetes and heart disease

•$92m will pay family carers of disabled adults, after the government lost a legal battle

•$901m over four years for education, including $552m of new money

•$19m in contingency funding for charter schools

•$130m for tertiary education over four years, including just over $27m for engineering and science

•An extra 354 staff for Work and Income and $174m of new money towards welfare reforms

•Financing support for low-income families, including a procurement scheme for cheaper whiteware for beneficiaries and exploring low and no-interest loans from community organisations

•Extra money to pursue property investment tax compliance

•Cracking down on multi-national companies so they pay their fair share of tax

•$100m over three years for the Warm Up New Zealand programme targeting insulation in low-income households