Issue 73, Commercial eSpeaking, Winter 2026

Budget 2026

Securing New Zealand’s future says the Minister of Finance

Despite pre-Budget announcements for the health, education and defence sectors, this Budget certainly contained some meaty content.

The government's broader approach could therefore be characterised as a 'meat and veg now, dessert later' strategy to economic management.

With a net operating package of an average $2.146 billion pa ($8.272 billion over the next four years), the health sector is a major winner, followed by education (including tertiary), defence and intelligence, law and order, etc totaling new expenditure of $14.666 billion over the next four years.

On the other side of the coin, the Minister has anticipated savings of $6.394 billion over the next four years, making the net package of spending of $8.272 billion over the same period.

Health

A $5.5 billion increase in funding for frontline health services

Funding for three-day postnatal stays ($34 million) and $16 million allocated to specialist paediatric palliative care
Pharmac has additional funding ($54 million) to buy more medicines
$682 million for capital investment includes a new tower block for Whangārei Hospital, redevelopment at Palmerston North and Hawke’s Bay Regional Hospitals, and
Funding to lower the eligibility age for free bowel screening from 58 years to
56 years; benefitting 200,000 Kiwis.

Education

The government’s aim is to lift student achievement in schools. The cancellation of the final year fees-free initiative will help fund preparing young people for trades and other vocational education. The main points are:

$131 million to help students meet standards for the three Rs (reading, writing and arithmetic)
Supporting the refreshed curriculum and new national qualifications implementation
Continuing the Healthy School Lunches Programme
Doubling the number of trades academy places providing free trades training for year 11-13 students, and

Around 230 new classrooms will be built, and there is a funding increase for school property maintenance and daily operations.

Defence and foreign affairs

Increased funding to retain current defence force staff levels, as well as increasing numbers in key areas
$110 million for international development cooperation, with particular focus on the Pacific, and
More funding to enable aircraft, ships (including keeping our two Anzac-class frigates ship-shape) and land forces to continue to operate.

Social housing and welfare

Increasing the accommodation supplement for people in private rentals, and increasing income-related rents for people in social housing
Funding for up to 2,250 additional social houses
More case management help to support solo parents into work, and
$45 million for extended community food support and children’s breakfast programmes.

Infrastructure

The government acknowledges that New Zealand’s current infrastructure must be not only be maintained, but also expanded through new investment.

The construction of the Cambridge to Piarere Expressway
Renewing and upgrading the rail network, particularly in Auckland and Wellington
Financial incentives to councils to encourage housing growth
Investment in hospitals, schools, courthouses, police stations and defence assets, and
Funding to drive the reforms to the resource management system.

These investments are in addition to previously approved current and pipeline projects.

Law and order

The government’s focus is to reduce crime and keep New Zealanders safe. Proposals include:

$503 million for frontline Corrections services
More support ($50 million) for frontline policing
Funding to reform the firearms safety system, and
$21 million for Customs to combat drug smuggling and transnational crime.

Fuel response

New Zealand is currently facing unprecedented pressure on its energy supplies resulting from the hostilities in the Middle East. The government will introduce:

A $50/week increase to the In-Work Tax Credit for up to a year to help working families with increased fuel costs
Funding for additional strategic fuel reserves to firm-up the country’s fuel resilience, if required
A temporary increase in mileage rates for support workers and people travelling for specialist treatment
Additional funding for Fire and Emergency, Corrections, Policy, Customs and Education to maintain frontline activities during this period, as well as
A $450 million contingency fund for future fuel-related costs.

Energy security is now top-of-mind in this current uncertain fuel climate. The government proposes:

Capital investment in Genesis Energy to accelerate the development of new generation and firming capacity, and
A new loan guarantee scheme to support businesses to transition away from the use of gas.

Public service

The proposed cuts to the public service have already been announced, and the reception has been mixed. The government wants to see improved productivity and greater efficiency to reprioritise frontline services while reducing the public service headcount.

Other initiatives include:

$200 million will be raised by a new tax on banks to help cover Reserve Bank costs
Rules will be changed to tax loans made by companies to shareholders that remain outstanding six months after the company is removed from the Companies Register
Stricter regulations for charities: a limit of $100,000 has been set for people claiming tax deductions for making charitable donations
More funding to control the dratted wilding pines
$184 million for Oranga Tamariki to protect and support children
Fringe Benefit Tax rules for private motor vehicles will be simplified
Making the SuperGold Card an official form of ID, and
Funding for new technology to improve our emergency management system.

NZ Superannuation

A vexed topic for any political party. Although not covered in the Budget, with the ballooning costs of National Super (projected to be $31.2 billion in 2030), all recent governments have grappled with future funding. Raising the age of entitlement, albeit slowly, and means testing are only two of the many measures proposed to alleviate the pressures on government funds. It is clear that the funding of NZ Super is a major issue and will need to be strongly addressed in the near future.

Overall the government hopes the Budget funding will lead to an increased GDP and a healthier economic environment.

To read the Budget in more detail, click here for the Minister’s Budget speech. The Treasury’s website, click here, is also very helpful.

If you would like to discuss more about the government’s proposals, please don’t hesitate to contact us.

Health and Safety at Work Amendment Bill

Expected to be enacted in the spring

The Health and Safety at Work Amendment Bill was introduced into Parliament on 8 February 2026 and passed its first reading on 12 February 2026. It is currently before the Education and Workforce Select Committee. Submissions closed at the end of March and the committee is scheduled to report back to Parliament by 12 June 2026. It is anticipated that the Bill will be passed before the election (early November).

If enacted, the Bill will represent the most significant reform of health and safety law in New Zealand since the Health and Safety at Work Act (HSWA) was passed in 2015.

Purpose of Bill

Workplace Relations and Safety Minister, the Hon Brooke van Velden, said that the Bill is intended to reduce compliance obligations, focus on preventing serious harm and clarify businesses’ obligations under the HSWA.[1] The key proposed changes in the Bill are:

Increased focus on preventing serious harm
Reducing compliance obligations for small businesses
Clarification of the health and safety obligations of landowners, and
Clarification of the relationship between health and safety legislation, and other legal requirements.

Introducing ‘critical risk’

The Bill introduces a new defined term of ‘critical risk.’ Small businesses must focus on avoiding critical risks. All other businesses must manage all risks but are required to ‘prioritise’ critical risks.

The Bill defines a ‘critical risk’ as a risk associated with one of the matters specified in Schedule 1A of the Bill; this lists a number of specific high-risk activities such as working with asbestos and other hazardous substances. A critical risk also includes any hazard that is likely to result in death, a notifiable injury or illness, a notifiable incident or an occupational disease listed in Schedule 2 of the Accident Compensation Act 2001.

Identifying what the critical risks are for a particular business is likely to be one of the more challenging aspects of the new legislation.

The impact on small to medium-sized businesses

The most significant change contained in the Bill is the narrowing of the duties of small to medium-sized businesses, referred to as ‘small PCBUs,’ to risks that are defined as critical risks under the Act.

This does not mean that small businesses have no obligations in relation to other risks. They are still required to provide adequate facilities to ensure the safety of their employees.

A small PCBU will be defined as a business with fewer than 20 employees. Businesses that have a fluctuating workforce will qualify provided that they have fewer than 20 employees for at least nine months of the year. This change is likely to have a significant impact on the compliance obligations of businesses in New Zealand, given that approximately 97% of businesses would qualify as a small PCBU.[2]

Obligations of landowners and recreational activities

Potential exposure to prosecution under health and safety legislation in New Zealand has long been a concern for landowners who wish to make their land available for recreational activities.

In the past, this has been a particular concern for rural landowners who have often avoided providing access to their land due to such concerns. It has also discouraged public landowners, such as schools and councils, from allowing their land to be used for recreational activities.

The potential liability of landowners was recently highlighted by the prosecution of the owner of Whakaari/White Island following the eruption in 2019, which resulted in the deaths of 22 people. The landowner was initially convicted in the District Court under the HSWA, despite not directly operating the tours to the island.[3] The High Court overturned this conviction on appeal.[4]

The passing of the Bill would mean that landowners would not generally owe health and safety obligations to people using their land for recreational activities.

The Health and Safety at Work Act and other legislation

The Bill would clarify the relationship between general health and safety legislation, and other legislation that applies to specific industries such as the aviation and maritime sectors.

In the past, there has been confusion as to whether or not businesses in industries covered by specific legislation have additional duties under the HSWA. The Bill clarifies that compliance with industry-specific legislation or approved industry codes of practice is also compliance with the HSWA, so there are no additional obligations.

The Bill also states that the owners of earthquake-prone buildings do not need to take additional steps under the HSWA, provided that they comply with the requirements of the Building Act 2004.

The Bill is intended to reduce the compliance work that is required by businesses under current health and safety legislation, which has become an expensive ’tick-box’ exercise for many. However, it will still be important for small businesses to identify the ‘critical risks’ in their businesses and to take steps to mitigate them.

[1] (12 February 2026) NZPD (Health and Safety at Work Amendment Bill – First Reading, Hon Brooke van Velden).

[2] New Zealand business demography statistics at February 2025, Statistics New Zealand.

[3] WorkSafe New Zealand v Whakaari Management Ltd [2023] NZDC 4149.

[4] Whakaari Management Ltd v WorkSafe New Zealand [2025] NZHC 288.

DISCLAIMER: All the information published in Commercial eSpeaking is true and accurate to the best of the authors’ knowledge. It should not be a substitute for legal advice.No liability is assumed by the authors or publisher for losses suffered by any person or organisation relying directly or indirectly on this newsletter. Views expressed are those of individual authors, and do not necessarily reflect the view of this firm. Articles appearing in Commercial eSpeaking may be reproduced with prior approval from the editor and credit given to the source. ©NZ LAW Limited, 2026. Editor: Adrienne Olsen, Adroite Communications. E: [email protected]. M: 029 286 3650.