The Interim Financial Statements of the Government of New Zealand for the seven months ended 31 January 2025 were released by the Treasury today.
The January results are reported against forecasts based on the Half Year Economic and Fiscal Update 2024 (HYEFU 2024), published on 17 December 2024, and the results for the same period for the previous year.
| Year to date | Full Year | ||||
|---|---|---|---|---|---|
| January 2025 Actual1 $m |
January 2025 HYEFU 2024 Forecast1 $m |
Variance2 HYEFU 2024 $m |
Variance HYEFU 2024 % |
June 2025 HYEFU 2024 Forecast3 $m |
|
| Core Crown tax revenue | 70,193 | 69,583 | 610 | 0.9 | 120,623 |
| Core Crown revenue | 77,804 | 77,122 | 682 | 0.9 | 134,038 |
| Core Crown expenses | 80,125 | 80,717 | 592 | 0.7 | 144,638 |
| Core Crown residual cash | (5,051) | (4,337) | (714) | (16.5) | (16,610) |
| Net core Crown debt4 | 180,603 | 180,669 | 66 | – | 192,810 |
| as a percentage of GDP | 42.8% | 42.8% | 45.1% | ||
| Gross debt | 203,070 | 195,257 | (7,812) | (4.0) | 206,558 |
| as a percentage of GDP | 48.2% | 46.3% | 48.3% | ||
| OBEGAL excluding ACC (OBEGALx) | (3,669) | (5,041) | 1,372 | 27.2 | (12,868) |
| OBEGAL | (4,994) | (6,233) | 1,239 | 19.9 | (17,317) |
| Operating balance (excluding minority interests) | 1,087 | (2,223) | 3,310 | 148.9 | (10,161) |
| Net worth | 188,883 | 185,654 | 3,229 | 1.7 | 177,492 |
| as a percentage of GDP | 44.8% | 44.0% | 41.5% | ||
Core Crown tax revenue, at $70.2 billion, was $0.6 billion (0.9%) higher than forecast with the largest variance relating to GST being $0.3 billion (1.9%) above forecast.
Core Crown expenses, at $80.1 billion, were $0.6 billion (0.7%) below forecast. This variance is mostly timing in nature and was spread across a range of functional spending areas.
The operating balance before gains and losses excluding ACC (OBEGALx) was a deficit of $3.7 billion, $1.4 billion less than the forecast deficit. When including the revenue and expenses of ACC, the OBEGAL deficit was $5.0 billion, $1.2 billion less than the forecast deficit.
The operating balance surplus of $1.1 billion was $3.3 billion better than the deficit forecast. This reflected both the favourable OBEGAL result and favourable valuation movements. Net losses on non-financial instruments were $1.6 billion less than forecast (largely owing to a $0.6 billion net actuarial gain on the ACC outstanding claims liability compared to a forecast net loss of $1.0 billion), partly offset by net gains on financial instruments being $0.2 billion above forecast.
The core Crown residual cash deficit of $5.1 billion was $0.7 billion more than the deficit forecast and was largely owing to lower tax receipts.
Net core Crown debt at $180.6 billion (42.8% of GDP) was broadly in line with forecast ($180.7 billion or 42.8% of GDP). While the core Crown residual cash deficit was higher than forecast, its impact on net core Crown debt was more than offset by valuation changes and higher issuance of circulating currency.
Gross debt at $203.1 billion (48.2% of GDP) was $7.8 billion higher than forecast, largely owing to higher than forecast unsettled trades, derivatives in loss and the issuances of Euro Commercial Paper driven by short-term cash requirements. However, this increase in gross debt was broadly offset by a corresponding increase in financial assets, therefore this has not flowed through to the net core Crown debt measure or to net worth.
Net worth at $188.9 billion (44.8% of GDP) was $3.2 billion higher than forecast largely reflecting the operating balance result.
ASB has appointed Kristen Ashby as its new Head of Food & Fibre, a newly established role within its Rural Corporate Banking team.
Kristen joins ASB from Fonterra where she was most recently Director of Capital Strategy. Starting her career as a Chartered Accountant, Kristen has worked across a variety of roles at organisations including Fonterra, Turners & Growers and Goodman Fielder.
Born and bred in Waikato, Kristen’s rural upbringing and breadth of experience mean she brings a unique perspective to this role. She is passionate about helping Kiwi businesses to reach their goals, as well as future proofing for tomorrow.
Kristen says, “I’m excited to be joining the team at such a crucial time. I see so much opportunity in the Food & Fibre sector and feel privileged to help build on the work already being done at ASB.
As a bank we can make a real difference for our rural communities, uplift regional economies and put New Zealand-grown products on the map globally.
I’m looking forward to getting on the road soon to meet our customers and broader industry participants to tackle these ambitious goals.”
ASB General Manager Rural Banking Aidan Gent says “Kristen is a passionate leader with a proven track record of success, genuinely interested in making a difference for our customers.
We are so excited to have her on board in this pivotal role as we bring our full-service banking proposition to the Food & Fibre sector – a critical component of our economy.
With Food & Fibre making up more than 80% of our global exports, there is significant opportunity in this sector. This is not just farmers – it is the innovators looking at new foods & fibres and future uses of land, processors, logistics companies moving goods, all the way through to the electrician in Gore fixing a woolshed.
Food & Fibre represents an opportunity to truly accelerate the social, environmental and financial progress of New Zealanders.”
Kristen Ashby started in her new role in February 2025.
Consumer NZ is calling on the Commerce Commission to consider a ban on card payment surcharges due to growing concerns about excessive and hidden fees.
While the Commission is considering lowering interchange fees – to reduce merchants’ costs for accepting card payments, – Consumer says there’s no guarantee this will reduce card surcharges for consumers, and that should be the priority.
Currently, there are no regulations in New Zealand on surcharges, only guidelines. The guidelines recommend surcharges be transparent, avoidable and not excessive. Unfortunately, these recommendations are often ignored, to the detriment of shoppers.
“The surcharging situation in New Zealand is a mess. We have received hundreds of complaints showing merchants are not complying with the guidelines. It’s time to introduce new surcharge rules,” says Consumer acting head of research and advocacy, Jessica Walker.
Although the Commission has said it will consider some form of surcharge regulation, an outright ban doesn’t appear to be one of the options being considered. Yet Consumer thinks a ban would be a simple and effective solution, with the benefits outweighing the risks.
“Less thought would be required about what card to use, whether to swipe, insert or tap; what the surcharge amount is and whether there’s a way to avoid the surcharge.
“You could just leave the house with your phone in your pocket, knowing you wouldn’t have to pay a hefty surcharge for the convenience of not carrying any cards. A ban makes things simpler for merchants too,” Walker says.
Issues with surcharging
Complaints to Consumer about surcharges include:
Excessive fees: Merchants are charging well over what it costs them to accept the card payment. In the worst cases, card payment surcharges have exceeded 20%. The Commission estimates New Zealanders are paying up to $65 million per year in excessive surcharges, with Mastercard estimating this figure to be $90 million.
Lack of transparency: Some merchants don’t mention the fact they add surcharges. Others have terminals that simply state “surcharge applies”, without specifying the amount.
Fixed fees: Some merchants charge flat fees rather than percentages, which don’t always reflect their actual costs.
Hidden fees: Additional costs, like service fees, are often bundled with surcharges, confusing consumers.
To address these issues, Consumer is calling on the Commission to consider a ban on surcharges.
The benefits of a surcharge ban
Transparency: A surcharge ban would eliminate unclear and hidden fees, allowing consumers to more easily compare prices.
Consistency: Consumers would have a consistent experience across merchants, with no nasty surprises at the counter.
Simplicity: A ban would be easy for consumers and businesses to understand and easy for the Commission to enforce.
Fairer: A ban would incentivise merchants to search for better card deals that allow them to reduce their payment costs. While surcharging is allowed, there’s no incentive for merchants to do this. Lower interchange fees also mean businesses could more easily absorb payment costs.
Encourages competition: Transparent pricing would allow consumers to shop around more easily, fostering competition.
Alignment with other jurisdictions: The United Kingdom and European Union have banned surcharges, proving such a ban can work.
The case for banning surcharges in New Zealand is strong.
Consumer lodged a submission with the Commission this week supporting further interchange regulation and calling for the Commission to consider a ban on surcharges.
We urge anyone else who is fed up with surcharges to let the Commission know by 5pm on 18 March 2025 using this simple online form: https://consumernz.cmail20.com/t/i-l-fdykily-ijjdkdttjk-j/
Source: Auckland Council
Aucklanders have come together to build flood resilience, with a successful pilot programme proving the power of community action. Their efforts have paved the way for region-wide expansion in 2025, helping more neighbourhoods prepare for future storms.
As part of Council’s Making Space for Water programme – a response to the 2023 extreme weather events – the pilot focused on promoting partnership, inclusivity, and local leadership to enhance Auckland’s flood resilience.
Running from September 2023 to December 2024, the pilot:
engaged 1,424 volunteers in resilience-building activities, including clearing critical stream blockages
partnered with 11 organisations to amplify community leadership
delivered 72 community events to improve flood awareness and stormwater management
planted 2,512 native plants in the right places to absorb water and reduce erosion.
Building on this success, 12 community environmental organisations have now been contracted to expand the programme regionwide in 2025 strengthening flood preparedness in at-risk communities by:
increasing public workshops to improve flood literacy and understanding of healthy catchments.
expanding stream restoration efforts to support stormwater management.
strengthening partnerships with mana whenua and local organisations to enhance resilience.
“The 2023 storms showed that we needed to strengthen community connections and invest in community engagement to foster resilience,” says Tom Mansell, Auckland Council’s Head of Sustainable Partnerships.
“This initiative ensures communities aren’t just preparing for floods—they’re actively reducing risk through education and local initiatives.”
Alanah Mullin from EcoMatters is involved in the initiative and highlights the importance of collective action.
“Flooding is a growing challenge, but we can all be part of the solution. Restoring waterways and planting the right native plants in the right places can help absorb stormwater and reduce the impact of heavy rain on our communities,” she says.
“When the city’s drainage system is overwhelmed, healthy streams can play a crucial role in moving excess water to the sea. By working together, we’re making Auckland more resilient—one neighbourhood at a time.”
Tom Mansell agrees.
“This initiative shows the power of community-led action. We’re not just responding to past events—we’re building a more resilient Auckland for the future.”
For more information or to get involved, visit the Auckland Council website.
