Budget 2025: Willis flags KiwiSaver, social investment changes in Budget

Tuesday, 13 May 2025

Nicola Willis signalled at a speech on Tuesday that there would be an initiative in the Budget around the Government’s social investment scheme.

Nicola Willis has signalled that the Budget will have an initiative to help KiwiSaver, while also flagging a $100 million investment into a NZ Superannuation-backed venture capital fund.

In a speech on Tuesday morning around economic growth and social mobility, Willis also signalled that there would be an initiative around the Government’s social investment scheme in the Budget, which Willis said had been designed to “tackle the entrenched disadvantage that blights lives”.

“We are spending more on ambulances at the bottom of the cliff than fences at the top,” she said.

“In addition to core social supports, government agencies collectively spend around $7 billion per year buying social services designed to deliver better lives for those with particularly challenging lives,” she said

“However, despite the best intentions of all involved, this expenditure cannot be described as a success.”

Willis also hit upon Kiwisaver, running through the growth of the sector and the fact it invested about 40% of balances in New Zealand, saying that there would be measures to help boost retirement incomes

“I want to see KiwiSaver balances continue to grow and our Budget will contain steps to support that mission.”

The Labour leader says the Government's move to cancel 33 pay equity claims is gaslighting half the population.

Willis, who was speaking at share platform Sharesies, also said that the Government would be investing $100 million in venture capital fund Elevate, which was established in 2020 to support high-growth tech-based startups in New Zealand. That is in addition to $300 originally tipped in by the Super Fund.

Earlier on Tuesday, Chris Hipkins used a pre-Budget speech to drive home Labour’s attack on the Government’s pay equity change and rhetoric around debt while dangling hints about a new “fair” Labour tax policy.

Hipkins, speaking at a Wellington Chamber of Commerce breakfast gave Labour’s critique of Budget, claiming that the Government was making the wrong choices.

Labour has been energised since last Tuesday when the Government announced that it was overhauling the pay-equity regime and legislating the changes under urgency, dissolving the 33 claims that were currently underway.

Hipkins dived straight into the issue at the top of his speech, before outlining a more general critique of the Government’s fiscal policies.

“I want to say upfront that paying for your Budget at the expense of women, cutting their chance at fair pay, is the opposite of all of those things,” Hipkins said. “I think the reaction over the past week has been swift, strong and utterly justified,”

Labour has had a significant social media campaign over the pay equity claim during mothers’ day.

“Let’s be clear - this Government is gaslighting half the population.

“Telling them they aren’t cutting women’s pay on one hand, while cancelling 33 active claims representing hundreds of thousands of women with no due process on the other.”

Hipkins’ also used the speech to flag that Labour will have tax policy coming down the line soon.

Chris Hipkins attends a Wellington Chamber of Commerce breakfast on Tuesday.

Labour is not anti-wealth. We are anti-poverty. And we are pro-opportunity—for everyone.”

“We believe in a fair tax system, and you’ll hear more from us on that soon.

“Not to punish success, but to ask those who have benefited most to contribute their fair share - to the schools that taught them, the roads that connect them, and the hospitals that care for their families.”

Labour has been debating both wealth taxes and capital gains taxes over the past few months.

Hipkins also pushed back on the Government's narrative around debt, arguing that New Zealand needs a “mature conversation” about it.

“You wouldn’t sell your house because of a mortgage you can easily manage. And we shouldn’t sell our public assets because of debt that’s low by international standards.

“And net debt isn’t the full story either. The government’s net worth more than doubled - from $81 billion in 2014 to $191 billion in 2023,” he said.

The Labour leader also sounded a positive note.

“We want New Zealand to be a place where our best and brightest don’t just want to stay—but can stay. Because there is opportunity here. Hope here. A future here.”

Hipkins also said that the New Zealand Government - both under National and Labour - had not done enough to stimulate the economy by supporting the America’s Cup.

Finance Minister Nicola Willis is expected to expand on themes around economic growth.

“I think there was probably a case for us to push harder to keep the Americas Cup in New Zealand, and I regret the fact that we didn't push harder, and I regret the fact that the current government haven't pushed harder.”

“Events like the America's Cup matter.”

Tuesday marks the beginning of the second sitting week of a three-week block, with the Budget delivered next Thursday.