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AM Edition: Top 10 Politics Articles on LiveNews.co.nz for May 30, 2026 – Full Text

AM Edition: Top 10 Politics Articles on LiveNews.co.nz for May 30, 2026 – Full Text

AM Edition: Here are the top 10 politics articles on LiveNews.co.nz for May 30, 2026 – Full Text

Generated May 30, 2026 06:00 NZST · Included sources: 10

1. Improving welfare system efficiency

May 29, 2026

Source: New Zealand Government

The Government is making changes to improve and update the efficiency of the welfare system by modernising its processes, Social Development and Employment Minister Louise Upston says.

The Social Security (Modernisation) Amendment Bill passed its third reading in Parliament today. It enables a broader use of automated decision-making to improve efficiencies. The Bill implements a change announced as part of Budget 2025. It does not impact eligibility settings for welfare assistance.

Source: New Zealand Government

The Government is making changes to improve and update the efficiency of the welfare system by modernising its processes, Social Development and Employment Minister Louise Upston says.

The Social Security (Modernisation) Amendment Bill passed its third reading in Parliament today. It enables a broader use of automated decision-making to improve efficiencies. The Bill implements a change announced as part of Budget 2025. It does not impact eligibility settings for welfare assistance.

Louise Upston says the Bill is about making sure the welfare system delivers support to New Zealanders efficiently, consistently, and sustainably – without undue drain on resources. 

“Every year, the Ministry of Social Development (MSD) makes millions of decisions – many of them straightforward, but the legislation has not kept up with how services are delivered today.

“While MSD currently uses automated processes where they can, there is still unnecessary manual processing, duplication, and delays for clients.

“The Bill introduces a set of practical, targeted changes to modernise how the system operates, improving the accuracy of the information MSD holds about people to make sure they get what they are entitled to, while ensuring the system remains fair and financially sustainable.

“Automated decision-making will be used where decisions are straightforward and do not require discretion. The system will not replace human judgement where it is appropriate, and in many cases will make it easier for people to confirm their circumstances. 

“This is about delegating straight-forward decision-making to an automated process, to free up time for case managers to engage better with clients so they can access assistance and move from welfare to work.”

The Bill also strengthens existing safeguards for the use of automated decision-making, including legislative requirements to manage bias, ensure transparency and maintain appropriate human oversight.

“New Zealanders can have confidence that decisions will remain fair, accountable, and open to challenge.

“These changes will not only improve efficiency, but also improve consistency and clarity, help reduce errors and avoid unnecessary debt for clients.”

Note to Editors:

Automated decision-making is not generative AI.

Original source: https://nz.mil-osi.com/2026/05/29/improving-welfare-system-efficiency/

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2. We are calling on the government to change course

May 29, 2026

Source: NZCTU

In the afternoon of the announcement of Budget 2026, the NZCTU brought together more than 80 people from 50 organisations to pen a response to the Budget and what we would like to see. This response was then handed to MPs on the steps of Parliament at 6pm – representatives from Labour, the Green Party, and Te Pāti Māori attended to receive the letter, and students from Victoria University joined the rally. Below is the text of the letter.

New Zealand families are going backwards. Wages are too low for too many people. Working conditions are eroding, with 73% of workers getting real terms pay cuts this year. Food and energy are unaffordable for many, and the public services all New Zealanders rely on have been hollowed out.

Source: NZCTU

In the afternoon of the announcement of Budget 2026, the NZCTU brought together more than 80 people from 50 organisations to pen a response to the Budget and what we would like to see. This response was then handed to MPs on the steps of Parliament at 6pm – representatives from Labour, the Green Party, and Te Pāti Māori attended to receive the letter, and students from Victoria University joined the rally. Below is the text of the letter.

New Zealand families are going backwards. Wages are too low for too many people. Working conditions are eroding, with 73% of workers getting real terms pay cuts this year. Food and energy are unaffordable for many, and the public services all New Zealanders rely on have been hollowed out.

For the past two years, this government has made poor choices that concentrate hardship on those least able to bear their consequences. Budget 2026 sadly continues this pattern.

Serious and sustained government action is needed now to reduce poverty. We need to rebuild public services, reduce child poverty, develop our public infrastructure and economic resilience, and ensure the wealthy pay their fair share.

This Budget does nothing to achieve these things. Instead, it conjures the mirage of an operating surplus by reducing the incomes of those with the least and cutting the public services we all rely on. 

This Budget cuts the incomes of some of the poorest households and communities in the country and provides almost no tangible cost of living relief. This is no vision for a fair society that provides hope for people, whenua, and the next generation.

  • The Government has narrowed eligibility for social housing support and taken money away from the very poorest households in Aotearoa. The Government has chosen to do this, knowing it will push more families into poverty and increase social distress.
  • The forecast return to surplus is built on the assumption that fuel prices will fall quickly – which is not the view of the oil markets. The minimal relief measures announced so far fall well short of what’s needed. Tens of thousands of families in need have been left without any support.
  • Real wages are set to fall this year for the average worker, and Jobseeker numbers are forecast to stay above 200,000 for the entire forecast period. By the end of 2027, real GDP per capita is forecast to be lower than in 2023 – meaning four years of no real growth.
  • We need a people-centred approach. To address the cost of living we need to lift wages, create jobs, and provide liveable benefits. Budget 2026 does not deliver any of this. Instead, it drags us backwards.

This Budget fails to address the historic underinvestment in the system, providing barely enough money to keep the lights on. This means access to healthcare will continue to deteriorate for ordinary Kiwis and unmet need will increase, as will needless suffering. 

  • Demand for health services is growing rapidly, driven by an ageing population and increasingly complex health needs. Yet the Government has once again neglected to lift health investment to the levels needed to meet growing demand.
  • The Budget’s failure to tackle child poverty, and the cost of living, will drive increased demand for health, further straining an overstretched system.
  • New Zealand faces a chronic shortage of skilled healthcare workers. This Budget contains no measures that address this gap. This shortfall will only get more serious in the coming years, so investment is needed now.
  • To address the health crisis, we need a sustained uplift in public health investment alongside a workforce development strategy to ensure we train and retain the health workforce of the future.

Budget 2026 will not set New Zealand up for the future we all deserve. The Government has failed to use our collective resources sensibly to strengthen the infrastructure our communities need to thrive. We need to seize this moment to build energy security, and lower energy costs for households. It has failed to invest at scale in the infrastructure that matters most to communities like social housing, hospitals, and schools.

  • New Zealand’s energy system is under serious strain. The decline of domestic gas fields and the rising price of petrol and diesel is causing energy poverty for many households and threatening some businesses.
  • The path to an affordable and secure energy system is to invest in renewables and clean transport systems. We generate the same amount of electricity that we did a decade ago.
  • We have growing homelessness in this country because of unaffordable housing. The government needs to increase its investment in public housing to address the growing homelessness and housing precarity in this country. Yet the new social housing builds announced today do not start until 2028/29.

For the third year in a row, this Government has undervalued te taiao, reduced our ability to mitigate climate change and putting whanau on the frontline of its impacts. This Budget fails to protect the people and communities likely impacted by climate change.  

  • In recent years, billions of dollars of damage has been caused by climate-change related storms and many lives have been upended. The frequency and severity of these events is only going to increase as the planet warms.
  • Budget 2026 has made almost no provision to address this. The only new funding it has provided for climate resilience is into roads. No funding has been made available to help communities adapt to the coming shocks. 
  • Now is the time to begin making long-term investments in our climate resilience, starting with the most at-risk communities and regions. The longer the delay, the larger the cost in the future. 

This Budget makes further cuts to education and to the public services New Zealanders rely on. This government has abdicated its responsibility to deliver the services that hold communities together. This is a Budget lacking in empathy and humanity.

  • The operational grants for schools have been cut 2% in real terms and the ECE subsidy has been cut 2.5% in real terms. Over $1 billion has been cut from tertiary education by the ending of fees free, of which only a fraction has been reprioritised to tertiary.
  • Core public services are being slashed, with a cumulative real term cuts of at least 18% to public agency baselines over the next three years.
  • New Zealand remains an international oddity for not having a capital gains tax, which would make our tax system fairer and generate meaningful revenue for vital public services. 
  • We cannot deliver the public services New Zealanders require if we keep cutting the government’s revenue base. We need to lift government revenue by taxing capital gains and ensuring the wealthy pay their fair share.
  • Government’s purpose is to protect and sustain the wellbeing of New Zealanders.

The current approach isn’t working. Unemployment continues to rise. The cost of essential goods and services remains far too high for many whānau. Our health, education, and other public services are under more strain than ever. Different solutions are needed.

Budgets are not easy. We acknowledge they involve difficult choices. But the choices made in this Budget are the wrong ones.

We are calling on the Government to change course: to invest in people, rebuild our public services, and lay the foundations for a fair, resilient, and thriving New Zealand. We cannot afford to continue making the wrong choices.

Original source: https://nz.mil-osi.com/2026/05/29/we-are-calling-on-the-government-to-change-course/

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3. Increased support for mothers and babies

May 29, 2026

Source: New Zealand Government

Mothers and their babies will receive more support in the crucial days after birth, with increased maternity beds and more staff to support longer postnatal stays, Health Minister Simeon Brown and Associate Health Minister Casey Costello say.

“The first few days of a baby’s life help shape lifelong health, development, and wellbeing. When mothers are supported early, outcomes are better for babies, parents, and the wider health system,” Mr Brown says.

Source: New Zealand Government

Mothers and their babies will receive more support in the crucial days after birth, with increased maternity beds and more staff to support longer postnatal stays, Health Minister Simeon Brown and Associate Health Minister Casey Costello say.

“The first few days of a baby’s life help shape lifelong health, development, and wellbeing. When mothers are supported early, outcomes are better for babies, parents, and the wider health system,” Mr Brown says.

“But when maternity services are under pressure, mothers can sometimes feel rushed to return home before they are ready.

“We want mothers and babies to have the time, care, and support they need after childbirth, which is why Budget 2026 invests in the additional capacity and staffing needed to safely deliver longer postnatal stays.”

Budget 2026 provides $34.4 million over four years to increase maternity bed capacity and grow and support the workforce so mothers can stay in hospital or a primary maternity unit for up to three days after giving birth.

“We know this change must be properly supported to ensure maternity services can safely deliver longer stays. That is why this funding is focused on expanding maternity capacity and infrastructure, while supporting the workforce needed to deliver longer stays safely and sustainably.”

The funding supports implementation of the Three Day Postnatal Stay Amendment Bill, currently progressing through Parliament, which, once enacted, will establish a legal entitlement for mothers to access a minimum three-day postnatal stay following childbirth.

The Government agreed to adopt the Bill, originally introduced by National MP Catherine Wedd, in September 2025. Cabinet has since agreed to progress the necessary legislative changes alongside the rollout of Budget 2026 funding to expand capacity and support the workforce needed to deliver longer stays safely and sustainably. 

Associate Health Minister Casey Costello says the changes respond directly to what women have been telling the health system for years and reflects a key commitment in the National – New Zealand First coalition agreement.

“The days immediately after birth are intense, emotional, and physically demanding,” Ms Costello says.

“Mothers are recovering from childbirth while learning to feed, settle, and care for a baby – often with very little sleep and a lot of uncertainty.

“Mothers shouldn’t feel rushed to leave hospital before they feel ready. Having time to recover, bond with their baby, and build confidence as a parent can make all the difference.

“We are focused on giving babies the best possible start in life and providing mothers with choice over how and where they receive support after giving birth. This funding will help maternity services expand capacity and support more staff so mothers and babies can receive the care and support they need during those first critical days.”

Mr Brown says the Government is committed to ensuring every mother and her baby receives the care and support they need right from the start.

“We are focused on building the future, and there is no more important investment than giving babies the best possible start in life and supporting mothers from day one,” Mr Brown says.

Original source: https://nz.mil-osi.com/2026/05/29/increased-support-for-mothers-and-babies/

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4. Government support for Hawke’s Bay growers

May 29, 2026

Source: New Zealand Government

The Government is supporting Hawke’s Bay growers to investigate what would be required for a successful farmer-led purchase of the McCain Foods’ vegetable processing site in Hastings, Agriculture Minister Todd McClay says.

“I’ve met with growers, local MPs Katie Nimon, Catherine Wedd and Minister Mike Butterick as well as mayors from the region and this week my officials from the Ministry for Primary Industries (MPI) visited to speak to those on-the-ground and gather more information,” Mr McClay says.

Source: New Zealand Government

The Government is supporting Hawke’s Bay growers to investigate what would be required for a successful farmer-led purchase of the McCain Foods’ vegetable processing site in Hastings, Agriculture Minister Todd McClay says.

“I’ve met with growers, local MPs Katie Nimon, Catherine Wedd and Minister Mike Butterick as well as mayors from the region and this week my officials from the Ministry for Primary Industries (MPI) visited to speak to those on-the-ground and gather more information,” Mr McClay says.

“The Government is committing $50,000 for the first stage of a feasibility study to assess what is required for a grower-led purchase of the site to be commercially viable.”

Mr McClay says he is getting regular updates on the situation. 

“I know this is a difficult time for the more than 100 Hawke’s Bay growers impacted by the site’s closure and the rural communities they belong to.

“I’ve asked my officials to remain in close contact with growers and to provide their expertise where required.”

Original source: https://nz.mil-osi.com/2026/05/29/government-support-for-hawkes-bay-growers/

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5. Foreign Minister to visit Samoa

May 29, 2026

Source: New Zealand Government

Foreign Minister Winston Peters will visit Samoa this weekend for Samoa’s 64th Independence celebrations.

“We look forward to joining Samoa in commemorating this important event. We highly value New Zealand’s warm and close friendship with Samoa,” Mr Peters says.

Source: New Zealand Government

Foreign Minister Winston Peters will visit Samoa this weekend for Samoa’s 64th Independence celebrations.

“We look forward to joining Samoa in commemorating this important event. We highly value New Zealand’s warm and close friendship with Samoa,” Mr Peters says.

While in Samoa, Mr Peters will attend official Independence Day events and meet with the Samoan Prime Minister and Minister of Foreign Affairs, Prime Minister La’aulialemalietoa Polataivao Fosi Schmidt. 

Mr Peters will also meet with the Prime Minister of Tonga, Lord Fakafanua, and the Ulu of Tokelau, Faipule Alapati Tavite, who are also attending the celebrations. 

“We will take this opportunity to discuss the fuel crisis, New Zealand’s aid programme in Samoa, and regional security.” 

Samoa’s annual Independence Day is on June 1 and is part of a three-day celebration. 

Mr Peters departs for Samoa on Sunday 31 May, arriving back in New Zealand June 2.

Original source: https://nz.mil-osi.com/2026/05/29/foreign-minister-to-visit-samoa/

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6. Government backs food & fibre sector’s success

May 29, 2026

Source: New Zealand Government

Budget 2026 is backing the primary sector to boost returns and productivity, improve land management and resilience, Agriculture and Forestry Minister Todd McClay says.

“We are working hard alongside farmers and growers to achieve more with less,” Mr McClay says.

Source: New Zealand Government

Budget 2026 is backing the primary sector to boost returns and productivity, improve land management and resilience, Agriculture and Forestry Minister Todd McClay says.

“We are working hard alongside farmers and growers to achieve more with less,” Mr McClay says.

“Strategic and targeted commitment of taxpayers’ money ensures the food and fibre sector has the backing it needs to generate the high-quality produce that feeds New Zealand and the world, supports communities and drives economic growth.

“Budget 2026 confirms $4.77 billion in baseline funding over the next four years year for the Ministry for Primary Industries (MPI) to support the primary sector and protect the frontline.”

Budget 2026’s key strategic investments include:

$109 million over three years to supercharge efforts to tackle the spread of damaging wilding pines
$437 million over four years to accelerate the development, availability, and use of new tools and technologies to reduce on-farm agricultural emissions
$266 million over four years for the Primary Sector Growth Fund to invest in projects focused on increasing returns, productivity, and opportunities in the food and fibre sector
$40.5 million over four years to back the efforts of farmer-led catchment groups to improve land management practices

“Budget 2026 backs sustainable growth of the food and fibre sector, our largest export earner,” Mr McClay says.

“Its exports are set to top a record $62 billion this year. One in every seven people work in food and fibre – a successful sector means thriving communities, a growing economy and a prosperous New Zealand.

“Alongside investing in innovative technologies and land management initiatives, we’re supporting farmers and growers to boost productivity and their long-term resilience.”

Like farmers and growers, the Government’s agriculture team of Ministers McClay, Andrew Hoggard, Mark Patterson and Mike Butterick is committed to using the resources we have efficiently to support the sector – to fix the basics and build the future.

Note to editor:

Budget 2026 builds on the National-led Government’s work completing and progressing a suite of positive actions supporting the sector, including: cutting red tape and costs through regulatory reform; unlocking new market opportunities for the sector such as through the New Zealand-India Free Trade Agreement; boosting rural resilience and wellbeing initiatives and partnering with industry to improve environmental outcomes.

Original source: https://nz.mil-osi.com/2026/05/29/government-backs-food-fibre-sectors-success/

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7. Budget 2026 confirms Luxon’s climate ‘plan’ is a trashfire

May 28, 2026

Source: Green Party

Budget 2026 confirms the Government has no plan to meet our commitment under the Paris Climate Agreement, at a cost that previously Treasury calculated as up to $23 billion due by 2030. 

“New Zealanders have experienced 21 States of Emergency this year, which even the Prime Minister has acknowledged are inflamed by climate change. Yet, his Government continues to pour fossil fuels on the fire,” says Green Party Co-leader Chlöe Swarbrick. 

Source: Green Party

Budget 2026 confirms the Government has no plan to meet our commitment under the Paris Climate Agreement, at a cost that previously Treasury calculated as up to $23 billion due by 2030. 

“New Zealanders have experienced 21 States of Emergency this year, which even the Prime Minister has acknowledged are inflamed by climate change. Yet, his Government continues to pour fossil fuels on the fire,” says Green Party Co-leader Chlöe Swarbrick. 

“We have all known for years that meeting the Paris Agreement, covering 2021 to 2030, will require offshore mitigation. Every bit of domestic action reduced increases the cost of that offshore mitigation.” 

“Nicola Willis and the Prime Minister keep saying they’re committed to meeting the NDC, then cut domestic action, which logically necessitates an increase in cost to pay other countries to reduce their emissions instead. 

“But this Government refuses to be up-front and honest about that. Treasury has been clear today that the Government’s inability to commit to reality means that they can’t properly forecast costs.” 

“The cheapest and most common-sense climate action is what we do here, at home, today.” 

“New Zealanders deserve a government honest enough to show them a plan that tackles the hard things, and shows how they’ll deal with it. Luxon has decided to leave our country, and our people, without. I wish I could say we were surprised,” says Swarbrick

Original source: https://nz.mil-osi.com/2026/05/28/budget-2026-confirms-luxons-climate-plan-is-a-trashfire/

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8. Budget 2026 fails Māori

May 28, 2026

Source: Green Party

The Green Party says Budget 2026 makes clear who this Government cares about, and it’s not Māori. 

“Budget 2026 neglects its Tiriti obligations to make way for the super-rich and powerful,” says Green Party Co-leader, Marama Davidson.  

Source: Green Party

The Green Party says Budget 2026 makes clear who this Government cares about, and it’s not Māori. 

“Budget 2026 neglects its Tiriti obligations to make way for the super-rich and powerful,” says Green Party Co-leader, Marama Davidson.  

 “Despite the desperate need in our Māori communities, Willis has seen fit to again turn away while delivering billions of dollars for landlords, fossil fuel dependency, and on new military equipment.” 

 “Te Tiriti o Waitangi is a promise of protection for whānau and for taiao: a promise Nicola Willis has broken for a third year in a row with this Budget. 

 “Te iwi Maori will be unsurprised, but that doesn’t make it right. This Budget will see more hardship where there doesn’t need to be any – and that is a political decision Nicola Willis is making. 

 “The Green Party knows that better decisions can be made for whānau, and for our taiao. 

 “Our lives can be affordable, our taiao can be healthy, politics can again be for ordinary New Zealanders. Kei ō tātou ringa ngā rawa kia puāwai: we have more than enough for all of us to thrive. 

 “That is the Aotearoa the Green Party is fighting for, and on 7 November, our people get to choose it,” says Marama. 

Original source: https://nz.mil-osi.com/2026/05/28/budget-2026-fails-maori/

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9. Surplus forecast reduces debt burden

May 28, 2026

Source: New Zealand Government

The earlier return to surplus forecast in this year’s Budget shows the benefits of disciplined economic management and a government taking its responsibilities seriously, Finance Minister Nicola Willis says.

“Treasury forecasts released today show the government’s books returning to surplus in 2028/29, a year earlier than previously expected. This means less borrowing, a lower debt track and a stronger fiscal position than previously forecast.

Source: New Zealand Government

The earlier return to surplus forecast in this year’s Budget shows the benefits of disciplined economic management and a government taking its responsibilities seriously, Finance Minister Nicola Willis says.

“Treasury forecasts released today show the government’s books returning to surplus in 2028/29, a year earlier than previously expected. This means less borrowing, a lower debt track and a stronger fiscal position than previously forecast.

“Debt servicing costs are currently more than $9 billion a year. Reducing the country’s debt burden means more taxpayers’ money can go towards the frontline services and infrastructure New Zealanders rely on, rather than ever-growing interest costs.

“The Government is continuing to invest in health, education, law and order and other essential frontline services New Zealanders rely on, while also building the infrastructure and resilience New Zealand needs for the future. What sets this Government apart is that it is doing so within a funding envelope that is affordable and responsible, while continuing the fiscal repair needed to put New Zealand on a stronger footing.

“The $2.6 billion OBEGALx surplus forecast in 2028/29 would be the first surplus in a decade, and is a big improvement on the $900 million deficit forecast in December’s Half Year Update. 

“Treasury also expects net core Crown debt to start reducing as a percentage of GDP in 2028/29, with this turning point occurring a year earlier than previously forecast.

“This improvement in the country’s books is reflected in the government’s borrowing programme. New Zealand Debt Management has lowered its forecast issuance of government bonds by $6 billion over the next four years, the first downward revision to the bond programme since 2021. 

“That is $6 billion New Zealand will not have to borrow, and not have to pay interest on.

“Treasury’s central forecast assumes the impact of the fuel crisis will be temporary, based on market pricing. While global uncertainty remains, even Treasury’s downside scenario shows OBEGALx returning to surplus in 2028/29.

“Getting the government’s books back in order has required some tough decisions, but all Kiwis will benefit from rebuilding the fiscal buffers New Zealand relies on to withstand future challenges whether they be caused by global upheaval, natural hazards or severe weather events. 

“That resilience matters in an increasingly uncertain world.”

Original source: https://nz.mil-osi.com/2026/05/28/surplus-forecast-reduces-debt-burden/

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10. Tax system being strengthened

May 28, 2026

Source: New Zealand Government

Budget 2026 introduces tax changes to strengthen New Zealand’s tax system, encourage investment and make it easier to comply with, Revenue Minister Simon Watts says.

“The Government is committed to driving the economic growth needed to create jobs, lift incomes and fund public services New Zealanders rely on,” Simon Watts says.

Source: New Zealand Government

Budget 2026 introduces tax changes to strengthen New Zealand’s tax system, encourage investment and make it easier to comply with, Revenue Minister Simon Watts says.

“The Government is committed to driving the economic growth needed to create jobs, lift incomes and fund public services New Zealanders rely on,” Simon Watts says.

Research and Development

Changes to the Research and Development Tax Incentive (RDTI) will ensure it remains well-targeted, supports innovation and operates as intended.

“Instead of making businesses wait until the end of the tax year, the RDTI is being changed to introduce in-year payments so businesses can get the tax credit sooner. This will support ongoing research activities by removing a key cash flow barrier.” 

The rules for claiming internal software expenditure are also being changed to ensure the tax credit is rewarding software development that generates wider benefits.

“We are reducing the cap on non-administrative internal software for R&D from $25 million to $3 million. This balances the trade-offs between encouraging R&D activities and ensuring the tax credit is well targeted.”

Other changes include increasing flexibility of RDTI return deadlines by giving the Commissioner of Inland Revenue the discretion to accept and amend late RDTI filings.  

The Government is also expanding the range of R&D expenditure mining businesses can claim under the RDTI.

Foreign Investment Fund (FIF) rules 

“The Government is building on progress made last year to encourage investment and make New Zealand a place where skilled people want to live and work.

“Budget 2025 introduced a new method to calculate a recent migrant’s Foreign Investment Fund (FIF) tax on unlisted shares. Budget 2026 extends this method to all New Zealand taxpayers, ensuring tax is paid only on realised gains and actual dividends.

“Budget 2026 also raises the FIF de minimis threshold for overseas investments from $50,000 to $100,000, reducing the number of small investors who are required to apply the FIF rules. 

“These changes will make it simpler and fairer for Kiwis to invest offshore, reduce surprise tax bills and decrease compliance costs.”

Fringe benefit tax

Budget 2026 simplifies fringe benefit tax (FBT) rules for private motor vehicle use by removing the requirement for detailed logbooks.

“Changes in this area will simplify the rules by taking a ‘close enough is good enough’ approach. This will significantly reduce compliance costs for businesses.

Integrity of the tax system

Budget 2026 makes several changes to maintain the integrity of the tax system.

“Six months after a company has been liquidated, or otherwise removed from the Companies Register, any outstanding loans it previously made to its shareholders will be taxed as income.

“It is unlikely such a loan will ever be repaid, so is effectively income to the former shareholder. Not taxing it is unfair to all the other New Zealanders who pay income tax and contribute to the costs of public services.

“The Government is also updating thin capitalisation settings for foreign-owned New Zealand banking groups to align with prudential requirements,” Simon Watts says.

“These changes help ensure the tax system works as intended. They protect the tax base and support a stable and predictable tax system.”

Compliance

Budget 2026 also invests a further $15 million per annum for Inland Revenue debt compliance activities. 

“The Government’s initial investment in compliance has contributed to approximately $3 billion in overdue tax being collected in the year to date. We are committed to building on that momentum because every dollar left uncollected is a dollar that cannot support our schools, hospitals, and keeping our communities safe,” Simon Watts says. 

Notes for editors:

The fiscal impacts of these initiatives are totalled below over the period 2025/26 to 2029/30. Some are funded through the Tax Policy Scorecard which is a memorandum account that allows the fiscal impacts of minor tax policy changes to be offset against one another, rather than being managed through Budget allowances.

RDTI changes (net savings of $84.6 million).
FIF rule changes (new spending of $72.5 million).
Taxing outstanding loans to shareholders (revenue of $146 million). 
Investment in Inland Revenue’s compliance activities (net revenue of $120 million).
Changes to motor vehicle fringe benefit tax rules (a cost of $0.6 million) and thin capitalisation rules for foreign-owned New Zealand banking groups (revenue of $45.2 million) are charged against the Tax Policy Scorecard.

Original source: https://nz.mil-osi.com/2026/05/28/tax-system-being-strengthened/

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