The Government has unveiled a wide-ranging Budget 2026 package aimed at balancing fiscal restraint with new spending on infrastructure, frontline services and support measures tied to the escalating global fuel crisis.
Finance Minister Nicola Willis said the Budget was designed to strengthen the economy while easing pressure on households and businesses grappling with higher living costs and international instability. The Government forecasts average economic growth of 2.7 per cent over the next four years, with unemployment expected to fall to 4.3 per cent and the books returning to surplus in 2028/29.
A major focus of the Budget is the response to rising fuel costs linked to conflict in the Middle East. The package includes a $50 weekly increase to the In-Work Tax Credit for up to a year, $150 million for expanded strategic fuel reserves, and a $450 million contingency reserve for further targeted support if conditions deteriorate. Additional funding has also been allocated to Police, Fire and Emergency, Corrections, Customs and public transport authorities to offset operational fuel pressures. Willis said the measures were intended to “keep the economy moving” while maintaining fiscal discipline amid global uncertainty.
Transport infrastructure is another centrepiece of the Budget, with Transport Minister Chris Bishop confirming $1.773 billion for the Cambridge to Piarere Road of National Significance, extending the Waikato Expressway. The four-lane 16-kilometre project is expected to improve freight links between Auckland, Waikato and the Bay of Plenty while reducing deaths and serious injuries by about 70 per cent. Bishop said the corridor was critical to the “Golden Triangle” region that accounts for more than half of New Zealand’s population and around 60 per cent of GDP.
In health, Budget 2026 allocates $153.6 million to strengthen cyber security protections across the health system. Health Minister Simeon Brown said the funding would expand 24/7 cyber monitoring, improve specialist capability and upgrade vulnerable IT systems following recent incidents involving patient data security. Health New Zealand will also contribute an additional $300 million towards wider digital upgrades, including replacing ageing devices and modernising radiology systems. Brown said the investment was aimed at protecting sensitive patient information and reducing the risk of service disruptions caused by cyber-attacks.
Social Development and Employment Minister Louise Upston announced a welfare package focused on moving more people from benefits into employment while supporting vulnerable households. Measures include $45 million for community food support programmes, $93.3 million to help sole parents find work, and $22.4 million aimed at reducing reliance on emergency housing. Upston said the Government was seeking to make the welfare system “fair, firm and simple” while delivering better long-term outcomes for families.
Meanwhile, Seniors Minister Casey Costello revealed plans to modernise the SuperGold Card by allowing it to be used as an official form of identification. The upgraded card, expected to roll out from October 2028, will include photographs and enhanced security features, with both physical and digital versions available free of charge to New Zealanders aged over 65. The Government has committed $36.4 million in operating funding and $6.5 million in capital funding over four years for the programme.
My speech in Parliament after @NicolaWillisMP delivered Budget 2026 – a budget that will secure New Zealand’s future. pic.twitter.com/ueg5hVZGjY
— Christopher Luxon (@chrisluxonmp) May 28, 2026
