Luxon: Our economy is starting to recover

• By Christopher Luxon, Prime Minister and MP for Botany

Budget 2025 shows that after a tough few years, New Zealand’s economy is starting to recover thanks to National’s careful economic management.

Inflation and interest rates are down, wages are growing faster than inflation, and the economy is expected to grow with 240,000 jobs created over the next four years.

We cannot take this recovery for granted. As we learned from Labour’s six years of economic mismanagement, a growing economy that reduces the cost of living for Kiwis is not guaranteed.

That’s why National has delivered a responsible Budget firmly focused on growing the economy to help Kiwis get ahead.

A key part of that is Investment Boost, which gives tradies, farmers, and other businesses a tax incentive to invest in new tools and equipment to boost productivity and lift wages.

Businesses can now deduct 20 per cent of the cost of new machinery, tools and equipment off their taxable income.

This is on top of existing depreciation, meaning a much lower tax bill in the year of purchase.

For example, if a tradie wants to buy new utes for their staff at $150,000, they’ll be able to immediately deduct $30,000 from their taxable income.

Investment Boost is good for businesses and good for Kiwi families.

When businesses have more money, they can hire more staff, lift the wages of their employees, and ensure they deliver a better product to the consumer.

Budget 2025 is focused on making the careful investments Kiwis need now to grow the economy and help New Zealanders get ahead.