New Zealand initiates new policies

Many of the new policy initiated by New Zealand government covered in the Budget had already been well-signalled, including further chunky ACC levy cuts in 2015/16 and 2016/17, a tightening of capital gains tax rules around investor property, and more money to open up Crown-owned land for Auckland housing development.

The main new policy announcement was the Budget's flagship $790m Child Hardship Package, raising benefit rates for families with children, Working for Families payments, and childcare subsidies - while also raising the pressure on beneficiary parents to work.
 
The total amount of net new spending was unchanged from Budget 2014 and in line with the $1bn-a-year new operating allowance from the December HYEFU. But compared to Budget 2014 each side of the ledger has increased, with more spending ($6,168m of new spending initiatives over the next four years vs $5,652m last Budget) funded by reduced expenditure elsewhere. 

Expenditure reductions include the removal of the $1000 KiwiSaver 'kick-start' subsidy, which is estimated to save about $500m over the next four years, and a new customs and biosecurity levy, estimated to generate about $100m of revenue a year, notes Institutional Bank.