Five Million Voices

Should Parliament enact the Budget 2025 tax package, including the Investment Boost deduction, higher KiwiSaver contribution rates with a reduced Government contribution, and changes to Working for Families and Best Start?

The bill amends the Income Tax Act 2007, KiwiSaver Act 2006 and Tax Administration Act 1994 to implement three Budget 2025 tax measures: an Investment Boost deduction for business assets, changes to KiwiSaver settings, and re-targeting of Working for Families and Best Start.

⚡ Taken under urgency

Parliament advanced this bill under urgency (committee of whole house, first reading, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued the Investment Boost incentive would lift business investment more effectively than a company tax rate cut, raising capital stock, GDP, and wages over time.
  • Supporters said extending KiwiSaver matching to 16- and 17-year-olds and raising default contribution rates would encourage younger people and others to save more for a first home or retirement.
  • Supporters argued raising the Working for Families income threshold would direct more support to low and middle income working families, with an estimated 142,000 families receiving more on average.
Why oppose it
  • Opponents argued the Investment Boost's promised gains would take many years to materialise while women, families, and low-paid workers face costs now, and that cheaper, more targeted alternatives were not analysed.
  • Opponents said lowering and means-testing the Government KiwiSaver contribution would leave low-paid workers worse off in retirement.
  • Opponents argued income-testing the first year of Best Start and the Working for Families changes would reduce payments for tens of thousands of families, including those with new babies and people out of work.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

The bill amends the Income Tax Act 2007, the KiwiSaver Act 2006 and the Tax Administration Act 1994 to give effect to a package of Budget tax measures. Its main changes are: an "Investment Boost" letting businesses deduct a large share of the cost of new productive assets upfront to encourage investment; changes to KiwiSaver settings, including reducing and income-testing the government contribution and lifting default employee and employer contribution rates while extending eligibility to some teenagers; and re-targeting of Working for Families and the Best Start payment so support is more tightly focused. It affects businesses, KiwiSaver members and families receiving tax credits.

The measures were introduced as a Budget package aimed at growth and fiscal savings. Supporters say Investment Boost lifts productivity and business investment, higher KiwiSaver rates strengthen retirement savings, and tighter targeting directs help to lower-income families. Critics argue cutting the government's KiwiSaver contribution weakens the incentive to save, higher compulsory contributions cost workers and employers, and trimming Working for Families and Best Start reduces support for some households.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Taxation (Budget Measures) Bill (No 2) · Second Reading, 22 May 2025
Parliament voted 68–55 — it passed.