There's nothing for Ministry for Pacific Peoples as govt says tax relief is coming

This year’s Budget sees no new funding or support for the Ministry for Pacific Peoples.

There are no new government commitments or increased funding for MPP’s core services in the government's financial plan for the year.

The ministry has had to cut off almost half of its workforce resulting in an overall saving of $25.6 million.

But the coalition government says it has delivered on its promise to hardworking New Zealanders' tax relief.

Nicola Willis has defended her financial plan saying tax relief is coming. Photo/Beehive

In delivering her Budget, Finance Minister Nicola Willis denied there was a lack of investment for Pacific people's wellbeing.

“There are significant investments for Pasifika Peoples though this budget through our health services where we continue to increase funding for our Pasifika health providers," she said.

“Our education system will fund Pacific language nests and early childhood education.

“This is a budget that is all about leaving people better off. It’s not about the glossy term ‘wellbeing’ being spread everywhere, it’s about actually delivering.”

The coalition government’s maiden Budget sees the Tupu Tai Internship Programme being cut by $200,000 annually over the next three years.

Willis said despite the cuts, the programme would continue.

“We’ve simply reduced some of the funding which we have been advised we can do without compromising the programme.”

Funding for the Pacific Cooperation through the Ministry for Foreign Affairs has ceased.

Forty cuts have been made to the Ministry for Business, Innovation, and Employment including an over $1 million annual reduction to the Pacific Business Procurement Support Service.

Parents and caregivers will be eligible for $150 a fortnight. Photo/supplied

Despite the cuts, Willis introduced a new childcare payment.

FamilyBoost is a new childcare payment that will be available to low-to-middle-income families with children aged five and under which aims to help with the costs of early childhood education.

This includes a quarterly lump sum amount first paid from October of a maximum fortnightly amount of $150. Parents and caregivers will be eligible for the payment from 1 July.

The same household with children will also be adding an extra $78 a fortnight thanks to the government’s changes to personal income tax thresholds (PIT).

This sees increases in PIT thresholds which reduces income tax for people receiving over $14,000.

The government has made a tax calculator available for people to calculate their tax relief through the budget’s website.

Investments of over $3 billion for hospital and speciality services, over one billion dollars to build new schools and classrooms and over one billion dollars to support disabled people.

Willis said this financial plan was the “clean-up” job New Zealanders needed.

“This Budget won’t fix all of New Zealand’s economic challenges on its own and there is much more to do, but it does show what is possible with care and discipline.

“Only through a strong economy can we end the cost-of-living crisis, lift wages, reduce interest rates and afford the public services we rely on. Our responsible Budget charts a course for recovery.”

Protesters descend on Wellington CBD ahead of the Budget delivery on Thursday. Photo/supplied

Protests were held across the motu as thousands of people descended on Tāmaki Makaurau and Ōtautahi as part of a nationwide day of action against the government's policies for Māori - ahead of this afternoon's Budget announcement by Willis.

Te Pāti Māori and the campaign group, Toitū Te Tiriti (Honour the Treaty), organised a strike to "unify Aotearoa and respond to the Government's assault on tangata whenua and Te Tiriti o Waitangi".

Police were monitoring the protest on Parliament grounds and surrounding roads were closed.

Budget at a glance