Budget 2025: A Business Adviser’s Take on What It Means for You

Budget 2025: A Business Adviser’s Take on What It Means for You

After more than two decades working alongside Kiwi business owners, I have learnt one very important thing. When a Government Budget drops, the real question is not what is in it, but what does it mean for me and my business right now? Budget 2025 makes bold moves to stimulate growth and steady the ship, especially for small businesses. From changes to KiwiSaver contributions to the new Investment Boost scheme, this year’s Budget signals that the Government is betting on business to lead New Zealand’s economic recovery.

If you are busy running the day-to-day, keeping the lights on, paying staff, and still trying to plan for the future, let me make this simple. Here is what you need to know and what I would be advising my own clients right now.

Economic Signals: Optimism, with a Dose of Reality

Minister Nicola Willis opened her Budget with a confident message about securing New Zealand’s future. Growth is forecast to reach 2.9 percent, which is promising. But let us not sugar-coat it. We are still climbing out of a tough season, and the pathway forward will favour those who plan well and move early.

For business owners, this means keeping an eye on investment opportunities, protecting cashflow, and using every available lever to stay ahead. As your business adviser, I believe this Budget gives us a few tools worth taking seriously.

Investment Boost: A Welcome Win for Growth

The Investment Boost scheme is something I have already had clients ask about. In short, if you are planning to invest in new gear—equipment, vehicles, technology or even a commercial building—you can claim an extra 20 percent deduction in the year of purchase, on top of normal depreciation.

This is more than just a tax break. It is a cashflow strategy. For businesses on the edge of investing but held back by short-term cost concerns, this could be the encouragement you need.

It applies to all new, not used, assets that are either locally purchased or imported. Before you go spending, let’s talk. Timing, structure and asset type all matter here.

KiwiSaver: Start Preparing Now

Changes to KiwiSaver will be phased in from April 2026, with contributions rising from 3 percent to 4 percent by 2028. Employers will also need to start contributing for 16- and 17-year-olds.

If you have a team, this will impact payroll. And if margins are already tight, even a one percent rise in contributions needs to be planned for.

My advice is not to leave this to chance. Let us forecast it now and work it into your cashflow strategy well before the changes take effect.

Capital Investment: Infrastructure Equals Opportunity

Big infrastructure spending is on the table

• $1 billion for hospitals

• Over $700 million for schools

• $2.7 billion for defence

• $460 million for rail upgrades

If your business is in construction, logistics, transport or trade services, there is potential here. These projects often filter through the supply chain. If you want to tender, subcontract or scale up to meet demand, now is the time to position yourself.

We can help you assess capacity, cashflow and staffing to be ready for opportunity when it arrives.

Backing Innovation and Attracting Investment

As a business adviser, I have always encouraged clients to be forward-looking. The Elevate NZ Venture Fund is getting extra support, and the new Invest New Zealand initiative aims to simplify the process for foreign direct investment.

For startups and high-growth firms, especially in tech and innovation, this signals increased funding pathways and a wider investor network. If you are exploring Series A or B capital raises, we would be happy to guide you through how this could affect your funding strategy.

Tax Compliance: The Net Is Tightening

The Government has allocated $35 million more per year to boost Inland Revenue compliance. That is expected to bring in over $280 million in additional tax revenue.

In other words, they will be watching more closely. If you have fallen behind on filing, if systems are manual, or if your records are a bit patchy, now is the time to sort it. As someone who has helped many clients through IRD reviews, I can tell you it is far easier to prepare than to repair.

Let Us Talk Strategy, Not Just Survival

I understand what it is like to run a business and raise a family. You are working long hours, juggling responsibilities, and trying to look after your people while also looking to the future.

That is why I take a practical, relationship-first approach to business advice. Budget 2025 has some real tools we can work with, but only if we tailor them to your situation.

If you are thinking about capital investment, feeling unsure about payroll changes, or just want a trusted voice in your corner, let’s talk.

Your Next Step

You can read the full Budget 2025 summary here.

Or, if you would prefer a clear conversation, give us a call. We can sit down, virtually or over coffee, and figure out what this means for your business.

Our team of business advisors would love to help you move forward with confidence.

Together we can achieve more.