A boost for healthcare

One of the big areas to receive a cash injection in Budget 2026 is healthcare. Funding increases in this area include:

• A $5.5 billion increase in funding for frontline health services
• An additional $54 million for Pharmac to purchase medicines
• Capital investment of $682 million, including a new tower block for Whangārei Hospital
• $33 million to further extend eligibility for the National Bowel Screening Programme to age 56
• $35 million to boost support for road ambulance services 

New levy on banks announced

A new ‘prudential levy’ on banks, insurers and other financial institutions is being introduced to help cover the cost of the Reserve Bank of New Zealand's regulation and supervision of these organisations, Budget day also revealed.

The levy is expected to bring in just over $200m over four years, which the government says is less than one per cent of the big four banks' total profits alone.

“This mirrors the approach taken by the Financial Markets Authority and the Commerce Commission, which fund much of their activity through levies on financial market participants,” Finance Minister Nicola Willis said.

“It is also consistent with international practice in countries like Australia, Canada and the United Kingdom.”

Ensuring a strong financial system is important so that it keeps working for Kiwis when times get tough, Willis says. This is important for seniors too, who may have significant savings in banks and other organisations, used to fund their retirement.

NZ Superannuation

A hot talking point for this year’s Budget centred around what didn’t change when it comes to NZ Superannuation. Both ACT party leader David Seymour and Finance Minister Nicola Willis have been arguing for measures to cut the rising cost of state pensions. This bill sits at almost $25 billion this year, heading to $31 billion in 2030. However, the NZ Super scheme survived the Budget unscathed, with the eligibility age remaining unchanged. 

Government contributions to the New Zealand Superannuation Fund are forecast to total $3.1 billion over the next four years, $2.2 billion more than expected at the Half Year Update in December, Willis said.

“Withdrawals from the Super Fund are now expected from 2054 onwards, to help meet the future costs of New Zealand Superannuation,” she said.

“In the meantime, Budget forecasts show the cost of New Zealand Superannuation growing rapidly as the population ages, from $24.7 billion in the current financial year to $31.2 billion in 2029/30.”

From 1 April, NZ Super payments automatically adjusted to keep pace with wages and inflation, with most retirees getting an extra $30 to $40 per week.

Project your retirement income.