Budget 2026: Finance Minister Nicola Willis delivers wins for schools and hospitals
Trades training boost a promising move, principal says
Pinned Kurt Bayer
Teens who have been sitting on the fence on whether to go to university have been hit by the removal of fees-free tertiary study for their final year, Darfield High School's principal Andy England says.
But England told Andrew Dickens on Newstalk ZB's Ryan Bridge Early Edition he was very excited by the doubling of trades training places in the Budget, reaching 20,000 places over four years.
“For many years we've been gearing school towards those people going to university and have often advocated for rebalancing the way that we invest in students,” he said.
“Trades academies…work so well in that senior school when you've got young people wanting to try out polytechnics or trades training and still stay in school because they're still young.”
'Heroic assumptions': Former Finance Minister praises direction of Budget but has reservations
Kurt Bayer
Former Finance Minister and Taxpayers’ Union chair Ruth Richardson has praised the direction of the Budget, but says there are some “heroic assumptions” about getting back to surplus in 2028/29.
“This is all on shifting sands of what might happen in the Middle East and the reverberations from that. So, I don't think that we should be banking that as a surplus slam dunk,” she told Andrew Dickens on Newstalk ZB’s Ryan Bridge Early Edition.
“Debt continues to rise, the operating allowance continues to rise, numbers can change, there are a lot of heroic assumptions in those numbers, and it's all on a promise that while they're spending for now, we will have savings later,” Richardson said.
She also warned if Superannuation was not addressed, it would “monster” the Budget.
Thank you for following our live coverage of Budget 2026
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We are closing off our live updates of for today.
We will be back tomorrow morning with live coverage of the latest news and reaction from this year's Budget announcement.
In the meantime, stay up to date with the all latest news from New Zealand and around the world on nzherald.co.nz.
'Unfair to other New Zealanders': Watts defends new shareholder loan tax
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Shareholders who borrow money from their company and don’t repay the loan after the business has been liquidated or removed from the Companies Register will have to pay income tax on it.
The change, made as part of Budget 2026, is expected to raise $146 million in total for the Government over the forecast period to 2029-30, with the peak impact in 2028-29 at $44m.
Minister for Revenue Simon Watts said it was unlikely such loans would ever be repaid so it was effectively income to the former shareholder.
Read the full story below:
Swarbrick recalls ‘Okay boomer’ speech as Greens urge discussion on climate change action
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The Green Party wants to “invite more public discussion” about the idea using Reserve Bank-style “teeth” to force the Government into reducing New Zealand’s emissions and meeting its climate goals, co-leader Chlöe Swarbrick said today.
She made her remarks after questions about Treasury’s verdict on the Government’s ability to meet its obligations under the Paris Agreement.
The Government is not on track to reduce its emissions sufficiently to meet the first Paris goal, which means it will need “sizeable offshore” purchases of carbon credits to reach the goal, according to Treasury’s Budget Economic and Fiscal Update. The Government has repeatedly said it will not be purchasing offshore carbon credits.
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SuperGold card becomes legal ID but seniors disappointed with Budget
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The SuperGold card is getting a facelift and will soon become legal identification for seniors.
The upgrade will cost $36.4 million in operating funding and $6.5m in capital funding over four years to deliver.
But multiple over-65s spoken to by the Herald said they were hoping for something more from Budget 2026.
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Change for new mums revealed in Budget - what extra funding means for young families
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Mothers will soon be given the choice of longer postnatal stays, Finance Minister Nicola Willis says.
Budget night document dump: All the revelations – benefit automation, charities tax rules, Working for Families changes
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Every year, on Budget night, the Government introduces legislation to pass with its Budget.
It also has to publish officials’ advice on what the laws do, lifting the lid on the details of what the Budget does and how it does it.
The Herald has been taking a look.
'Completely misses the mark': Tech industry leader hits out at Budget 2026
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Key Budget 2026 technology measures included (all totals for the next four years):
- $153.6m to boost Health NZ’s cyber security
- $30.8m to “develop policy and possible regulatory options to improve children’s online safety”
- $10m for venture capital investment into start-ups
- Govt will save $87.2m by lowering the cap for the R&D software incentive from $25m to $3m but also introduce in-year payments
- $16m for a Defence Technology Accelerator
Finance Minister Nicola Willis has recently talked up AI’s potential for helping to shave $2.4 billion in public sector spending by cutting 8700 jobs and using artificial intelligence to fill the gaps.
But Craig Young, chief executive of the Technology Users Association of New Zealand, said he saw no immediate details about how this would be achieved.
Read the full story below:
'Missed opportunity': Budget criticised for failing on child poverty targets
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Budget 2026 has revealed the Government is likely to miss all three of its main child poverty targets, disappointing children’s advocates who are seeing families without basics such as food, heating and healthcare.
While the Government says its welfare changes are designed to move more parents into work and reduce long-term dependency, critics argue the Budget will increase pressure on struggling households.
Official documents cite persistent inflation, high housing costs, benefit increases failing to keep pace with wage growth, a slowing economy and rising unemployment for the Government’s inability to hit its targets.
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Cash for houses: Govt offers $400m to councils to give planning approval to more homes
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Councils will be given cash bonuses for each home they give planning approval to under a $400 million Budget 2026 fund the Government hopes will lift the housing supply.
New houses typically cost councils money upfront as they often have to pay for infrastructure – roads, pipes, parks and more – long before they make cash back through rates from new residents.
The Government’s new Incentives for Growth Fund tries to flip that by paying councils for each home that receives a building consent in their district.
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Govt injects $1.77b to extend Waikato Expressway, but Labour cites 'alarming' cost jump
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The Government has allocated almost $1.8 billion in Budget 2026 to extend the Waikato Expressway from Cambridge to Piarere.
But Opposition parties have pointed out the project has been in the wings for a decade, and claimed its cost has jumped alarmingly in that time.
The new four-lane, 16km expressway will connect the end of the current Waikato Expressway to the intersection of SH1 and SH29 at Piarere, south of Karāpiro.
Transport Minister Chris Bishop described SH1 between Cambridge and Piarere as a “critical freight and economic link” that connects the Golden Triangle connecting Auckland, Waikato and Tauranga with the central and lower North Island.
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'Very welcome news': Whangārei Hospital secures long-overdue upgrade
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The 2026 Budget is being called a win for Northlanders, with funding for Whangārei Hospital’s 158-bed ward tower as a key announcement.
Fair trade? Fees-free scrapped to make way for trade school opportunities
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The Government has officially scrapped the fees-free tertiary scheme, redirecting part of the savings into a major expansion of trade training opportunities for secondary school students.
Budget 2026 will lead to the number of Trades Academy places doubling from 10,000 to 20,000 over the next four years, alongside extra funding for industry-focused school subjects and free study costs for those with no qualifications to attend trade schools.
Trades training providers said the investment could be life-changing for young people, helping steer students away from gangs and into apprenticeships and employment.
Read the full story below:
More than $2 billion to be spent on Corrections by 2028 to keep up with surging jail numbers
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New Zealand’s spending on the Corrections Department, to keep the country’s growing prison population locked up, is increasing under the coalition Government, with the tally expected to reach almost $2.5 billion in the coming years.
The latest Budget allocates an additional $477 million to managing operating cost pressures associated with prisoner volumes. This is on top increases of funding worth $393.4m in 2025 and $803m in 2024.
It is rare for three successive Budgets to include massive cost-pressure adjustments, yet it has become more common in the past three years for departments to have their funding cut.
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Defence spending surges in Budget as Willis warns of unsafe world
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In a big boost to defence spending, $1.6 billion of new funding has been pumped into the military, with Minister of Finance Nicola Willis today warning of an increasingly unsafe world.
The increased funding to rebuild and expand New Zealand’s military capability continues the Government’s drive to lift defence spending to 2% of GDP.
There has been criticism that the money is too focused on equipment and not enough on people.
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Willis directs banks not to pass levy costs on to Kiwis, Seymour says customers will pay
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Finance Minister Nicola Willis is “directing” banks not to pass the costs of a new levy on to their customers, but Deputy Prime Minister David Seymour says customers will end up paying for it.
“I am directing them right now: do not do that to New Zealand customers,” she said after the Herald asked what the Government could do to limit banks passing on any costs.
“You are the most profitable companies in the country. You do very well for yourselves. Do not put extra costs on to your New Zealand customers.”
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'Previous Governments let it rot': Peters trumpets $1b Budget funding for rail
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The Government has committed more than a billion dollars to the country’s rail network.
The Government’s Budget released today details $1,075,000 for KiwiRail’s planned network investments between 2027-2030.
City networks in Auckland and Wellington will also receive $106.9 million.
Rail Minister Winston Peters said the country’s rail network has been neglected.
“New Zealanders invested sweat, blood and tears to build their national rail network, but previous Governments let it rot,” he said.
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🎧 The Front Page Podcast | 'Deeply damaging': Why the PSA wants this Government voted out
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While everyone counts the dollars and tries to make sense of Budget 2026, there are thousands of public servants facing the loss of their jobs.
Hawke’s Bay Hospital set for ‘major’ upgrade
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Budget 2026, unveiled on Thursday, included funding for “major hospital upgrades” at Hawke’s Bay, Whangārei, Tauranga and Palmerston North.
Waipā Mayor welcomes planned Waikato Expressway extension
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There's relief the Waikato Expressway extensions can finally proceed, with $1.7 billion allocated in Budget 2026.
The 16km stretch will reach the intersection of State Highway One and S29 at Piarere.
Waipā Mayor Mike Pettit says it's exciting news.
"It helps with New Zealand GDP, but it definitely helps with Waipā – but more importantly, Waikato GDP. If you can move freight in a more efficient way, it sort of saves costs right through to the consumer."
Chris Hipkins outlines what Labour would have done differently
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Finance Minister says growth and higher wages will come following Budget 2026
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Budget 2026 Interactive: Winners and losers – and every dollar the government spends
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Use the Herald's two interactive graphics to see the Budget's winners and losers.
Budget ‘asking scientists to do more with less’
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Dr Kyle Highham, from Motu Economic and Public Policy Research and Te Pūnaha Matatini, says the Budget is asking scientists to “do more with less”.
He says that while some changes may improve efficiency, they also give ministers greater influence over what research is funded, raising concerns about who decides where breakthroughs come from.
Highham warns both current and past Governments are turning New Zealand into a “place where talent wants to leave”.
“Scientists continue to be laid off in droves. PhD graduates ready to contribute to the next big technological leap are finding the only way to fulfil that dream is to leave the country for good.”
Superannuation a 'time bomb' – Willis
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Finance Minister Nicola Willis has described superannuation as a “time bomb” that is here now and political parties need to be honest about it.
Willis told Newstalk ZB’s Heather du Plessis-Allan Drive the National Party will come to the election with changes to ensure superannuation is affordable.
“We don't think it should be an entitlement that exists for retirees now but is robbed from younger people in the future because this generation of politicians refuse to do anything to tweak it.”
Willis said the superannuation bill for the country will increase by $1.8 billion next year, which is almost as big as her entire operating allowance in this Budget.
Consumer NZ warns new finance sector levy could raise costs for customers
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The revenue from the new levy will be less than 1% of the total profits of the big four banks alone.
Liam Dann: No lolly scramble, just healthy snacks dressed up as treats in Budget
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"Don’t get me wrong. It’s good that the Government found a way to fund this stuff, but it all had to be done. It isn’t transformational in terms of driving productivity and growth," Liam Dann writes.
"And it isn’t going to provide much of a lift to Kiwis struggling to deal with the cost of living and worried about losing their jobs."
Alex Martin: Under-30s 'being robbed of their future'
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'I certainly wouldn't have prioritised increasing rents for state house tenants' – Hipkins
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Labour leader Chris Hipkins said it will be landlords who benefit from the increase to the accommodation supplement.
Hipkins told Newstalk ZB’s Heather du Plessis-Allan Drive that evidence shows those who are in accommodation-supplement households pay higher rents than those who don’t.
“I certainly wouldn't have prioritised increasing rents for state house tenants because the accommodation supplement, which is where they're putting that money, by and large just flows through to increased rents and landlords benefit from that.”
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Budget 'a sugar hit for new spending' – NZTU
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Hipkins will go through Budget numbers before setting out alternatives
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Labour leader Chris Hipkins wouldn’t say if Labour would unwind any of the policies announced in today’s Budget.
“We're going to go through the numbers pretty carefully before we set out our own alternative plans, but we will do that over the next few weeks and months,” Hipkins told Newstalk ZB’s Heather du Plessis-Allan Drive.
Hipkins said it was good to see money being spent on infrastructure and some of the health initiatives were good, but said it was a Budget that's “asking those with the least to make the biggest sacrifice”.
“Tenants in state houses seeing their rents being increased. Young New Zealanders having supports taken away from them,” he said.
'I know I'm not home enough': Finance Minister thanks family in Budget day speech
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'Clearly gearing up for an election': Thomas Coughlan on Budget 2026
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Business Canterbury reacts to ‘disciplined’ Budget
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Business Canterbury said Budget 2026 largely met expectations, delivering a fiscally responsible approach.
“Given the signals leading in, we expected a disciplined and relatively conservative package, with limited direct support for business,” chief executive Leeann Watson said.
“While that discipline is important, in the current environment, it cannot come at the expense of building a stronger economic future.
“At first glance, there isn’t a clear, cohesive growth story running through this Budget, particularly when it comes to lifting productivity, encouraging investment, and supporting the private sector to expand.”
'There were no surprises' – Katie Bradford
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Katie Bradford said this Budget is looking ahead, but many Kiwis are likely to feel like it doesn’t make them any better off right now.
“It's certainly not your typical election year budget. But again, we didn't expect that. There were no surprises, and maybe that's what we should call it, the no-surprises Budget”, she said.
Bradford acknowledged that a lot of people might need to feel that security and stability right now.
Young people not heard in this Budget – Alex Martin
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Both Sides Now co-host Alex Martin said under-30-year-olds had not been heard in this Budget and the Government might see the repercussions of this in the youth vote.
'Do not put extra costs on to your New Zealand customers,' Willis tells banks
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Prime Minister Christopher Luxon said the Government’s focus is to get through this crisis as “tidily as possible”.
Both Luxon and Finance Minister Nicola Willis warned banks not to pass on the cost of new levies to New Zealand customers.
“You are some of the most profitable companies in the country. You do very well for yourselves. Do not put extra costs on to your New Zealand customers,” Willis said.
Willis says Govt has a 'track record for delivery'
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Finance Minister Nicola Willis said the Government has a “track record of delivery” and it will deliver the savings promised in today's Budget.
"We delivered 1.6 billion [dollars] a year of annualised baseline savings in our first Budget. We got it done. This is a Government that is committed to getting more value out of every taxpayer dollar, and we have created time so that the public service has time to plan for it so that these can be gradual changes, well-prepared for."
Under-30s 'being robbed of their future' – Alex Martin
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Both Sides Now podcast host Eve McCullum told Herald NOW’s Budget 2026 Special she thought Finance Minister Nicola Willis had done a “great” job with today’s Budget, whereas co-host Alex Martin said under 30-year-olds are being “robbed” of their future.
Martin said while fees-free hadn’t achieved all of its objectives, there still aren’t jobs for young people when they finish university.
She emphasised the significance of addressing students’ living costs.
“I came out with $70,000 student debt. $30,000 of that was just on living costs, and I was working a part-time job throughout that too.”
A lot of uncertainty to the forecasts – Katie Bradford
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Senior correspondent Katie Bradford told Herald NOW’s Budget 2026 Special there was a lot of “uncertainty” to the forecasts, and they could very easily be thrown out.
“We are expecting the June figures to things like unemployment, inflation, GDP to look pretty bad. That's what the Budget's saying today. The hope is, of course, things will get better.”
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Business editor at large Liam Dann told Herald NOW’s Budget 2026 Special he was “cynical” about some regional councils' ability to allocate their own funds.
“Sometimes it's good to have bureaucratic oversight,” he said.
“I certainly do think to be the kind of nimble economy that we want to be, and need to be, that we have to have very efficient structures in place and they haven't been that.”
'We are fixing the basics of the economy' – PM
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Christopher Luxon said Labour's oil and gas exploration ban, which has since been repealed, was the "most economically reckless" decision that was a "disaster for working people".
The Prime Minister urged Labour to commit to not reintroducing the ban in the future.
On law and order, Luxon said it should not "be controversial to say that criminals belong in prison and not out on the streets".
This is in reference to National's tougher sentencing laws.
"This is a Government that came here with a mission – we are fixing the basics of the economy ... of law and order, of how we teach our kids, of our fiscal position and our place in the word."
'More cuts, more pain': Barbara Edmonds on Budget 2026
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"This is what the future actually looks like, not a TikTok [video], not a press release ... " Luxon said.
"Roads of National Significance are underway ... we are also building the schools, the courthouses and the police stations."
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National MP Rima Nakhle has taken over the role as the main heckler.
"Too busy taking selfies?" she said across the House to Labour. "Back to the basics!"
Jenée Tibshraeny on Budget 2026
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'You don't get prosperity without security' – Luxon
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Christopher Luxon is taking aim at Chris Hipkins' and Labour's capital gains tax campaign policy, saying he was targeting farmers and small business owners.
Nicola Willis had delivered a laser-focused Budget that was responsible, and she "had knocked it out of the park", Luxon said.
Most of the Labour MPs have left the House.
"We know the past few years have been incredibly difficult for Kiwis," Luxon said, listing Donald Trump's tariffs, the Covid pandemic, the cost of living and the war in the Middle East.
"But the bottom line is you don't get prosperity without security. That is the logic behind Budget 2026."
Budget 'really, really bad' for Māori – Rawiri Waititi
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Te Pāti Māori co-leader Rawiri Waititi told Herald NOW’s Budget 2026 Special today’s Budget is “really, really bad” for Māori.
“Māori again get 0.24% of the Budget and 134 million decrease in Māori development, which is the lowest investment in the last 15 years,” he said.
“Our people are struggling to put kai on the table. Our people are struggling to decide whether they pay the or pay for the prescriptions for their nannies and their papas.”
He pointed out the unchanging disparities between Māori and non-Māori, criticising Māori assimilation into the same “melting pot”.
“If we don't look at it from an equity lens, nothing will change. So I don't agree with Nicola Willis assimilating Māori into the melting pot because that hasn't done us any favours in the past.”
All numbers should be taken with a grain of salt – Liam Dann
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Herald business editor at large Liam Dann told Herald NOW’s Budget 2026 Special the Treasury forecast will always be better than expected or worse than expected.
“I would take all the numbers about where we get in the next four years with a grain of salt,” he said.
“We have these external shocks in New Zealand. It's a small country, every few years we get hit with an external shock, and the Government has got less and less room to help us out on external shocks.”
Luxon hits out at Hipkins' 'woeful' speech
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"They are whacking the people who can't afford it, the people whose budgets will not stretch any more," Chris Hipkins said.
"It did not need to be this way.
Winston Peters has now returned to the House and has swiftly taken to heckling Hipkins.
"Enjoy the leather benches for 163 days more, because your time is done," Hipkins said to the coalition Government.
Prime Minister Christopher Luxon said "I would rather face 100 duck-sized horses than sit through another speech as woeful as that" in reference to Hipkins' speech.
The "duck-sized horses" is a reference to a joke by Labour that fell flat earlier this week.
Luxon took a jibe at Hipkins, saying the Labour leader must of put his "Spider Man pyjamas on last night" and woken up thinking he was "a left wing hero."
Labour had a spending habit so bad it would make "a Las Vegas pokies machine blush", Luxon said as he continued to return jibes to Hipkins.
"I have heard about Rogernomics, but I think what Labour is running on is I-don't-care-onomics."
'I can't get in the mind of Donald Trump or whoever's in charge in Iran' – Seymour
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On the impact of the ongoing fuel crisis, Deputy Prime Minister David Seymour told Herald NOW’s Budget 2026 Special there were variables out of the Government’s control.
“I can't get in the mind of Donald Trump or whoever's in charge in Iran right now. So as a result all you can do is say, let's just hope for the best, prepare for the worst”, he said.
“We've got that 450 million [dollars] set aside so we can help people if needed, buy more fuel if needed, whatever the events have.”
‘If we keep our head in the sand, we’re just going to get our butts kicked harder’ – David Seymour
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Deputy Prime Minister David Seymour told Herald NOW’s Budget 2026 Special he had been saying for years that raising the age of retirement is an inevitability.
“The idea that we can always just borrow a few billion more, that's an easy lie. The hard truth people are living longer, they're having fewer children, that means there's more people retired for longer and less young taxpayers to pay for it."
He said every other country was already making the change “because they can read the numbers”.
“If we keep our head in the sand, we’re just going to get our butts kicked harder."
Coalition 'pretends the country's poorest people don't exist' – Hipkins
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Chris Hipkins is sharing individual case studies for people leading difficult lives in state housing and living rough.
"Move-on orders? Out of sight, out of mind?" the Labour leader said, before saying the coalition Government pretended as if the country's poorest people did not exist.
Superannuation 'robbing' people under 50 – Willis
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Political editor Thomas Coughlan told Herald NOW’s Budget 2026 Special that Finance Minister Nicola Willis had said superannuation was “robbing” people under 50 during today’s lock-up.
“She said that superannuation was basically robbing people who are under 50 years old because it will mean that they pay higher taxes in the future and they will get less super in the future,” he said.
“And right before she said that, she said, you know, with all due respect to the people to my left – ie Shane Jones – she made those remarks.”
'Deeply disappointed': Marama Davidson slams Budget 2026
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As Foreign Affairs Minister Winston Peters was walking out of the House, Hipkins mentioned cuts potentially happening at his department. Peters stopped in his tracks and stared at Hipkins, before grinning and continuing to walk out.
Earlier return to surplus biggest talking point for Govt – Thomas Coughlan
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NZ Herald political editor Thomas Coughlan told Herald NOW’s Budget 2026 Special today’s Budget was less one big announcement and more lots of small ones.
“The big thing the Government is going to be talking about is the fact that they're getting to that surplus when Nicola Willis said they would, 2028-29.”
National 'have failed' – Hipkins
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"National promised to fix things, instead they have made them worse. They have failed," Labour leader Chris Hipkins said.
He said Nicola Willis had painted a "rosy" picture of New Zealand today, but that was not a picture most Kiwis would recognise.
Kiwis' everyday reality was far different to what Willis and Prime Minister Christopher Luxon presented.
Shane Jones continued to scowl and heckle as Hipkins spoke about the people who have lost or are soon to lose their jobs in the public sector cuts.
Will you be better or worse off? Explore our Budget day financial forecasts calculator
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See what the Budget forecasts predict for your future pay and the value of your home – or your chance of buying a house. Add your personal numbers to the boxes in the link below, then click on any one of the five years to see the predicted outcome. Click on the underlying forecasts banner to see the expected national figures for house prices, wages and inflation.
'I'll meet them at the ballot box' – Shane Jones
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New Zealand First deputy leader Shane Jones told Herald NOW’s Budget 2026 Special the main concession for his party had been the bank guarantee scheme for the gas transition.
“I can’t underestimate the importance of us finally intervening to secure some fiscal relief for the firms that are marooned.”
He said he would have liked the new tax levy on banks to have gone much further and would like to borrow “ambitious” ideas from Australia's Treasury.
Jones said he understood that the other two parties wanted to “recklessly” campaign on superannuation but wouldn’t acknowledge the costs as a problem himself.
“We think there’s more we can do to grow the economy, and we do not want to deprecate the hardship and the sacrifice that people my age and older have made to the growth of the country,” he said.
“I can’t stop other parties ... wanting to completely invert the pension scheme ... I'll meet them at the ballot box.”
'Robin Hood would not be proud of this Budget' – Hipkins
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Labour leader Chris Hipkins said this Budget was the Government's "last chance". At this point, Willis left the House and her family trailed out of the Public Gallery.
Hipkins said this Budget was "taking from the poor to give to the poor".
"Robin Hood would not be proud of this Budget. They are desperately trying to create the illusion of progress using smoke and mirrors, as Kiwis continue to go backwards."
He said Willis saying the books would reach surplus a year early still came two years after they were meant to before she became Finance Minister.
As Hipkins spoke, Shane Jones heckled "boring!"
Hipkins then listed alternative statistics to what Willis focused on, including jobs lost in construction.
"Who is going to do that work?" Hipkins said, in response to the infrastructure planned in the Budget.
Katie Bradford's top takeaways of the Budget 2026
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Stronger emphasis on basic literacy would be positive – Alan McDonald
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Employers and Manufacturers Association head of advocacy Alan McDonald told Herald NOW’s Budget 2026 Special the emphasis on basic literacy, numeracy, and computer skills in education would be positive for work readiness.
”That's kind of getting a cohort of people at an earlier age and preparing them to go into some of those trades and technical skills that we don't do at the moment or don't do very well.”
'I hope to make you proud': Nicola Willis addresses family
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Willis' tone changed suddenly as she addressed her husband, children and parents in the public gallery.
She paid tribute to them for supporting her in her work, and on the brink of tears, she said: "I know I am not home enough ... I work hard ... and I hope to make you proud".
As she wrapped up her speech, her family stood up in the public gallery and clapped for her, as did all of the MPs and ministers on her side of the House.
Budget 'does nothing to secure NZ's future' – NZCTU
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The New Zealand Council of Trade Unions (NZCTU) said Budget 2026 steals from low-income families and slashes public services.
“The Government is pouring billions of dollars into military hardware, prisons, and roads but doing almost nothing to relieve cost-of-living pressures for those doing it hardest,” NZCTU president Sandra Grey said.
“The Budget does nothing to secure New Zealand’s future.”
Budget 100% a team effort – Willis
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"The Budget was 100% a team effort ... the Budget reflects and demonstrates what it is to deliver strong, stable Government," Finance Minister Nicola Willis said.
The Budget team included members from Act and NZ First, David Seymour, Winston Peters and Shane Jones.
Whether Budget 2026 will shift NZ's long-term trajectory is yet to be seen – Dileepa Fonseka
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BusinessDesk journalist Dileepa Fonseka told Herald NOW’s Budget 2026 Special that questioned whether the budget would actually shift the country’s long-term trajectory.
“The same thing happened in the United Kingdom immediately after the Global Financial Crisis. The Conservative Government there had ran a lot of Budgets where it was”, he said.
“Always forecasting an uptick in the following year, and then it got pushed out a little because the growth sort of never arrived.”
Super Gold card will be able to be used as official ID
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Changes are also coming for the Super Gold card. This will include introducing the option for elders to use this card as an official form of identification, taking note that many people on the scheme often did not have IDs like a driver's licences.
Nicola Willis said "I think you know where that one came from", as she looked towards NZ First leader Winston Peters.
Good and bad in the Budget – EMA head of advocacy
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Employers and Manufacturers Association head of advocacy Alan McDonald told Herald NOW’s Budget 2026 Special that there was both good and bad in the Budget.
“I think some of the emphasis on infrastructure is quite useful, not just the hard stuff like rail. And the Piarere connection, which is critical to connecting the Port of Tauranga, which is still in growth mode and our biggest export thing.”
While he said the unemployment number peaking at 5.5% was not “good news”, he said extra places at trade academies would be helpful.
Housing changes aimed at 'rebalancing support' - Willis
Vera Alves
On housing, the amount tenants pay towards social housing would be increased from 25% to 30%. The changes were about "rebalancing support" in relation to renters, "not reducing it".
Changes that aimed to nudge sole parents off sole parent support into jobs was "good for those mums and dads," Willis said.
Tens of millions would go toward this cause.
Govt prioritised tobacco companies and landlords - Labour
Vera Alves
Labour MP and finance spokeswoman Barbara Edmonds told Herald NOW’s Budget 2026 Special that the Government has prioritised tax breaks for tobacco companies and landlords over “everyday Kiwis”.
“New Zealanders we're expecting something for them given how hard things are for them, that they're struggling to put food on the table, but this Budget basically was their last chance and they failed.”
Govt announces massive Budget education boost – what’s in it for your kids?
Stacey Hunt
A $2.1 billion chunk of Finance Minister Nicola Willis’ Budget is going to education.
After two years of focus on the Government’s flagship education programme, back-to-basics, this Budget switches gear to focus primarily on older students.
But there are still bits and pieces in the Budget for all ages – including a 2% ($160 million) increase in operating grants for schools and half a billion dollars for school property.
Here’s what Budget 2026 means for your children:
Willis 'changed the goalposts' to achieve surplus forecast – Labour's Barbara Edmonds
Vera Alves
Labour MP and finance spokeswoman Barbara Edmonds told HNOW’s Budget 2026 Special today's budget was “more cuts, more pain, higher costs for everyday New Zealanders”.
She said Finance Minister Nicola Willis “had changed the goalposts” to achieve a surplus forecast.
Edmonds said if the Government wants to change the age of Superannuation, “they need to talk to the country and bring the country with you”.
Fees-free programme 'a failure' - Willis
Vera Alves
Finance Minister Nicola Willis called the fees-free programme a failure, particularly for those from low socioeconomic backgrounds.
This was a programme that covered initially the first year of tertiary study before it was changed under the coalition to the second year.
Money saved from scrapping fees-free would go towards getting more students into trades and "the path to a successful career in the trades."
Willis said NZ First Minister Shane Jones was a champion of the scheme.
Greens co-leader: 'I don't want to see any sports team welcome this Prime Minister to their game ever again'
Vera Alves
Responding to planned public sector cuts, Green Party co-leader Marama Davidson told NHerald NOW’s Budget 2026 Special would cause “further intergenerational harm”.
“I don't want to see any sports team welcome this Prime Minister to their game ever again. They should feel free to boo him,” she said.
“Again, when you have got an economic approach that sees you underinvesting in public services, the things that our people need and rely on then you are actually creating further intergenerational harm and intergenerational costs.”
Education budget focused largely on older students
Vera Alves
The education wedge of the Budget was focused largely on older students.
That's because the Government is scrapping the country's primary secondary school qualification.
Willis declared: "We are leaving NCEA behind us."
Support for front line health workers
Vera Alves
The biggest item in the Budget was support for frontline health workers to address pressures for those at the coal face, Finance Minister Nicola Willis said.
Funding would go to Pharmac, ambulances, forensic mental health services and to lower the bowel screening age.
Govt failing to meet child poverty targets – Marama Davidson
Vera Alves
The Green Party says this year's Budget shows the Government is failing to meet child poverty targets.
“This Budget does nothing to lift the hundred of thousands of children now living in poverty, even as the Government's own child poverty report confirms it is not on track to meet the targets it is legally bound to hit," Green Party co-leader Marama Davidson said.
"Behind every one of these numbers is a tamariki going without a warm bed or a decent feed. This Budget had the power to change that for whānau, and the Government has chosen not [to], instead to live children and their whānau struggling."
'Deeply disappointed': Greens co-leader reacts to Budget
Vera Alves
Green Party co-leader Marama Davidson told Herald NOW’s Budget 2026 Special that she was “deeply disappointed” with today’s Budget, which she said prioritised the rich over ordinary people.
“This Budget, once again, does not give extra support to people already struggling. It puts supports into more fossil-fuel crisis, which is roads of national significance, into defence spending. They can find billions and billions of dollars for defence spending. For tobacco fuel companies, wealthy landlords, tax cuts for the rich.”
She said the Budget shows the Government does not intend to reach child poverty reduction targets.
“This Budget once again has chosen to leave children and their whānau struggling in material hardship without food. Without kai, without adequate housing. That is a political decision. It is a heinous political decision.”
$7b for new hospitals, roads and schools - here’s where they are
Stacey Hunt
Upgrades to hospitals, new school developments and extending the Waikato Expressway are among the big-ticket items in the Government’s boosted capital spend in Budget 2026.
Ahead of today’s Budget, Finance Minister Nicola Willis confirmed her Budget’s capital allowance would be increased to a net $5.7 billion, up about $2b from what was expected.
Govt has failed to show New Zealanders how their lives could be improved - Chris Hipkins
Vera Alves
Labour leader Chris Hipkins has claimed the Government has failed to show New Zealanders how their lives could be improved.
In a statement released shortly after the Budget, Hipkins said the Government had broken its promise to fix the economy and were decimating the public service after earlier committing to reduce headcount by almost 9000.
“Nicola Willis has given New Zealanders nothing to ease the pressure they are under. Instead of helping struggling New Zealanders, Christopher Luxon and Nicola Willis chose to make lives harder.
“Cutting these [public service] roles will affect social workers, police, housing and healthcare, and hurt the regional economies as thousands more families struggle to make ends meet."
Hipkins claimed Labour had a plan that "chooses real action on the cost of living, to help families and businesses".
Hipkins didn't identify any particular policies. His party had been criticised for releasing just a few policies ahead of election year. Hipkins had maintained he would be releasing more policy after the Budget.
New funding to emergency management systems
Vera Alves
Nicola Willis said New Zealand was vulnerable to severe weather events and Budget 2026 invested $400 million in capital for road resilience, describing this as the more "responsible" choice than repeatedly repairing roads when they are impacted.
Also, $1.8m will go towards extending the Waikato Expressway from Cambridge to the Tauranga turnoff, which again prompted claps from the ministers in the House.
New funding would also go to emergency management systems, saying the minister in charge, Mark Mitchell, had "been their champion".
Forecasters 'humble' about whether surplus will be achieved
Vera Alves
Herald Wellington business editor Jenée Tibshraeny told Herald NOW’s Budget 2026 Special that Treasury forecasters are currently “humble” about whether the surplus will be achieved.
“The Treasury is actually much more upbeat on the economy than the Reserve Bank. All of its forecasts are based on the assumption that the fuel shock will be temporary and things will return to normal.”
“So all through the forecast, we see things really look quite bad in the June quarter.”
Fuel crisis big topic in budget speech
Vera Alves
Perhaps unsurprisingly, the fuel crisis featured heavily in the Budget literature and again in Willis' speech.
"It is prudent to be ready for a scenario that fuel prices could surge or staying higher [than expected]," she said.
Vera Alves
Cheers were particularly loud when Nicola Willis said: "This will be the first time in a decade when the Government books have been in the black."
Lack of big changes typical of election year budget – Simplicity chief economist
Vera Alves
Simplicity chief economist Shamubeel Eaqub said it’s unsurprising that there are a lack of big changes in an election year.
“Most of the increases in spending came from welfare, health and education, all the kind of the meat-and-vege stuff of politics, of Government spending. There is quite a lot of ambitious expenditure plan for CapEx for the next year.”
Do you have questions about the Budget? Ask our experts – business editor at large Liam Dann, senior political correspondent Audrey Young and Wellington business editor Jenée Tibshraeny – in a Herald Premium online Q&A here at nzherald.co.nz at 9.30am, Friday, May 29. And for all our Budget coverage, click here.