The Government’s 2025 Budget landed with all the fizz of a lukewarm cuppa. Finance Minister Nicola Willis called it a “careful balance,” and to be fair, that’s accurate. It doesn’t blow anything up, but it doesn’t spark much confidence either.
For those of us working in construction, engineering, manufacturing, and labour hire, the good news is… well, there’s not a lot of bad news. But is there much here to help you move forward right now? Not really.
What’s in the pot?
Investment Boost – Businesses can now deduct an extra 20% on new asset purchases, on top of standard depreciation. It’s meant to free up cash flow and encourage upgrades – think tools, gear, tech, maybe even a new work vehicle.
But before you stampede to the dealership, a reality check – FBT still applies, and that alone makes work vehicle purchases feel like walking into a trap. So yes, technically a win, but in practice, most businesses will look at the numbers and shrug.
No company tax relief – Corporate tax rates stay put, so you’re not saving there.
More support for tertiary STEM training – Great for the future of space-tech start-ups, less relevant if you’re trying to hire a qualified builder this winter. The skills shortage in trades remains exactly where you left it – tough.
Trade and export focus – Budget 2025 sets aside $83.75m to deepen ties with India, Singapore and Southeast Asia, plus $85m to launch Invest NZ – a new agency to link overseas investors with Kiwi businesses. Good long-term strategy, but unlikely to shift the dial for local builders, fabricators, or civil crews in the next 6–12 months.
KiwiSaver changes – A future cost to be aware of. By 2028, employers will need to contribute 4% instead of 3%, and eligibility now starts from age 16. Not urgent, but something to factor into wage planning.
So what’s the verdict?
It’s a stay-the-course Budget. If you were hoping for bold moves or big business support – it’s not that. The best option in here is the investment write-off, and even that has barriers for most small operators. Cashflow remains tight, project pipelines are slow, and hiring is still hard.
If this Budget helps you, you were probably already in a pretty good place.
If you’re running lean, doing the mahi, and looking for a reason to feel excited, this isn’t it. But if you’re steady and strategic, there are still a few small levers to pull.
Just maybe hold off popping the champagne.
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