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Budget 2017 Home Page Summary of Initiatives in Budget 2017

2  Budget 2017 Overview

The tables in this section provide a high level overview of new initiatives in Budget 2017, the Care and Support Workers' Pay Equity Settlement and the Family Incomes Package.

Table 1 - Summary of Budget 2017 Initiatives
$m 2016/17 2017/18 2018/19 2019/20 2020/21 4-Year Total Average [2] Capital
Business Growth Agenda 39 200 264 268 268 1,001 260 56
Investing in Public Services 52 1,233 1,390 1,369 1,453 5,444 1,374 82
Infrastructure for a Growing Economy 6 26 37 32 59 154 40 3,782
Māori Development  - 25 25 24 19 93 23  -
Other  - 100 160 154 150 566 141 277
Contingencies 49 123 110 99 80 412 115 93
Revenue and Savings  (27)  (62)  (134)  (191)  (189)  (576)  (151)  (312)
Budget 2017 Net Package 119 1,645 1,852 1,756 1,840 7,093 1,803 3,977
Care and Support Workers Pay Equity Settlement[3] - 348 389 413 392 1,541 385 -
Total 119 1,993 2,241 2,168 2,232 8,634 2,188 3,977

Table 2- Family Incomes Package

Table 2 - Family Incomes Package
$m 2016/17 2017/18 2018/19 2019/20 2020/21
Tax Reductions - 486 1,896 1,895 1,976
Working for Families  - 97 373 318 310
Accommodation Supplement  - 87.6 361.6 380.3 399.7
Accommodation Benefit - 6.3 19.5 19.5 19.8
Transitional Fund - 1.1 0.5 0.4 0.3
Consequential Impacts[4] - (74.3) (575.2) (760.9) (693.7)
Total  - 603.6 2,075.3 1,852.3 2,012.0

Notes

  • [2] The average represents the sum across five years divided by the forecast years (2017/18-2020/21).
  • [3] The Care and Support Workers’ Pay Equity Settlement has been funded outside of the Budget 2017 operating allowance of $1.8 billion. The five year settlement cost (effective from 1 July 2017) is estimated at $2.048 billion.
  • [4] Consequential Impacts includes, for example, increases in New Zealand Superannuation payments owing to an increase in the post-tax average wage (to which it is indexed), a reduction in the tax paid on benefits (the payments to recipients are unaffected) and increased GST revenue as people spend their additional post-tax income.
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