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The Government will invest up to $200 million in new Genesis Energy shares to support secure, affordable energy and maintain a 51% Crown ownership. This investment aims to enhance energy security by enabling Genesis to increase flexible capacity and strengthen the long-term value of the state-owned asset. It is part of a broader Government initiative to improve energy reliability and reduce living costs for New Zealanders.
The Government’s Investment Boost is effectively encouraging firms to increase, accelerate, and scale up their investments, thereby enhancing productivity and economic growth. Survey data shows that a significant portion of companies have raised their investment spending and shifted toward productivity-enhancing assets due to the policy, with Inland Revenue modeling indicating a reduction in the effective marginal tax rate on new capital investment. These positive impacts align with projections of GDP, wage, and capital stock growth over the next 20 years, demonstrating the importance of stable, supportive tax policy for long-term economic development.
The New Zealand Government has launched an independent review to evaluate the monetary policy response to the Covid-19 pandemic, aiming to identify lessons for future major events. The review will focus on the Reserve Bank's decisions, communication, use of additional tools like the Large Scale Asset Purchase programme, and coordination with fiscal policy, with monetary policy experts Athanasios Orphanides and David Archer appointed to lead it. The findings are expected by August 2026 and will be publicly released in September 2026.
Finance Minister Nicola Willis highlights that an additional 15,000 people gained jobs in New Zealand in the last quarter of the year, alongside increased hours worked and job-seeking activity, indicating a growing economy. Although the unemployment rate rose slightly to 5.4%, it remains below Treasury forecasts, with expectations of a future decline as economic recovery continues. Additionally, the proportion of young people not in education, training, or employment decreased, reflecting positive outcomes from government efforts to support business growth and employment.
The New Zealand Government is establishing two new day specialist schools in Palmerston North and South Auckland by 2027-2028 to support children with high and complex needs, marking the first such development in nearly 50 years. This initiative addresses long-standing demand for specialist education, expanding the total number of specialist schools to 29 and providing families with more tailored learning options. Funded through recent budgets, the schools will feature purpose-built, accessible facilities designed to foster inclusion and help students unlock their potential.
The Government will present its 2026 Budget on 28 May, focusing on supporting core public services such as health care, education, defence, and law and order. Finance Minister Nicola Willis emphasizes tight control of discretionary spending, prioritizing limited commitments without excessive expenditure. The Budget aims to deliver savings and reprioritize existing funds to maintain essential services while restoring fiscal responsibility.
Finance Minister Nicola Willis welcomed the strong 1.1% economic growth in the third quarter, driven by 14 of 16 sectors, signaling a positive turnaround after challenging years. Key job-rich sectors like manufacturing, construction, and business services showed significant growth, alongside increases in exports and investment, indicating promising future job prospects and higher incomes. With GDP per capita rising 0.9% and forecasts predicting accelerated growth and lower unemployment next year, the government’s strategy to strengthen the economy appears effective.
The Government will monetise its debt in Chorus, recovering funds earlier than the original 2036 repayment schedule to invest in capital projects like schools, hospitals, and roads. This decision follows the completion of the fibre broadband rollout, funded by $1.336 billion in interest-free loans to Chorus between 2012 and 2023, with $170 million repaid in 2025. The monetisation process will begin in early 2026, with proceeds ring-fenced for Budget 2026 infrastructure needs, and will not affect Chorus’s ownership or services.
Finance Minister Nicola Willis has welcomed the Reserve Bank’s decision to ease some capital requirements imposed on banks in 2019, including adjustments to risk weights. These changes aim to enhance competition, particularly benefiting smaller banks and increasing lending to key sectors like agriculture. The revised requirements maintain prudence while promoting a more balanced approach between risk management and fostering competition, with gradual implementation planned.
Finance Minister Nicola Willis emphasizes the need for continued fiscal discipline to restore New Zealand’s budget surplus and reduce debt, despite Treasury’s forecast of a strong economic recovery with 3% growth and low inflation. The government aims for a surplus by 2028/29 through a medium-term fiscal consolidation strategy, maintaining tight control over discretionary spending and limiting operating allowances to $2.4 billion next year. Priorities include health, education, defence, and law and order, with new funding to come from savings and reprioritisation, ensuring the country remains fiscally responsible compared to other advanced economies.
The Fast-track Approvals Amendment Bill has been passed to streamline and expedite the approval process for important projects, particularly benefiting supermarket competition and regional development. The amendments aim to reduce consent processing times by over six weeks, making it easier for new supermarkets to open and boosting economic growth. Ministers emphasize that these changes will promote affordability, regional prosperity, and faster project delivery by addressing previous inefficiencies and red tape.
Finance Minister Nicola Willis and RMA Reform Minister Chris Bishop announced a major overhaul of New Zealand’s planning rules aimed at boosting economic growth, job creation, and income levels by replacing the Resource Management Act with a more efficient, pro-growth system. The reforms, introduced through two new bills—the Planning Bill and the Natural Environment Bill—are projected to save $13.3 billion in costs over 30 years and increase GDP by at least 0.56% annually by 2050, while strengthening property rights and reducing regulatory burdens. The Government plans to pass the legislation by 2026, inviting public input through the Select Committee process.
On 5 December 2025, Australia and New Zealand held their third Climate and Finance Ministers’ 2+2 Dialogue, emphasizing collaboration on climate action, renewable energy investment, and regulatory alignment to lower energy costs, enhance security, and capitalize on economic opportunities from the net zero transition. They committed to joint initiatives including upgrading energy efficiency programs, aligning EV and battery standards, supporting sustainable aviation fuel development, and advancing sustainable finance frameworks to boost trade and investment. Additionally, the ministers reinforced their partnership in supporting Pacific resilience, coordinating economic reforms, and fostering regional cooperation to address climate impacts and promote long-term prosperity.
New government procurement rules, effective immediately, aim to boost Kiwi businesses by simplifying tender processes and introducing a minimum 10 percent economic benefit weighting in contract evaluations. The Ministry for Business, Innovation and Employment will monitor compliance and impact, ensuring agencies prioritize New Zealand economic benefits such as workforce participation and training. These changes apply to contracts over specified thresholds and comply with international trade obligations by allowing foreign companies to demonstrate economic benefits to New Zealand.
The New Zealand Government is actively reducing non-tariff trade barriers to support approximately $600 million in exports, boost business growth, and create jobs, with recent successes including expanded market access to China, Korea, and Mexico. Key initiatives such as trade agreements with the UAE, Gulf Cooperation Council, and ongoing negotiations with India have contributed to exports surpassing $100 billion for the first time, driven by strong growth in food and fibre sectors. Ministers Nicola Willis and Todd McClay emphasize that improving market access and trade certainty is essential for sustaining economic momentum, supporting jobs, and doubling export value within the next decade.