The Government touted it as the ‘Growth Budget’ and the Minister of Finance as the ‘No BS Budget’. But those less satisfied quickly labelled it the ‘Robin Hood Budget’ -stealing from the working people, or the ‘Budget for Billionaires’. But how did seniors fare in Budget 2025? We take a look.
Rates relief
Included in Budget 2025 were plans to ease the rates burden for SuperGold Cardholders and their households, with up to 66,000 more SuperGold cardholders set to receive council rates rebates.
From 1 July, the ‘income abatement threshold’ for SuperGold cardholders will be lifted from $31,510 to $45,000, about the rate for a couple receiving superannuation. The maximum rebate for the scheme will also increase from $790 to $805.
“This is the first time we are introducing a separate income abatement threshold to the Rates Rebate Scheme”, Seniors Minister Casey Costello says.
“It will mean that every SuperGold Cardholder earning only NZ Superannuation, with rates higher than $2000, will be eligible for the full rebate. SuperGold Cardholders earning more than $45,000 may also be entitled to a smaller rebate.”
Aged Care
Health spending included news that a $6 million fund supporting older seniors to transfer from hospitals to aged residential care and care in the community will continue for another four years.
However, the announcement didn’t go down well with Aged Care Association chief executive Tracey Martin, who fears there will be nowhere to transfer them to without more funding.
“There’s no money in the Budget for older New Zealanders, so the Government has resorted to announcing the continuation of existing funds as a win,” Martin says.
She describes it as an insult to the tens of thousands of older New Zealanders who need aged care in this country or will do so in future.
Martin says the government does not fund residential aged care providers, with the key relationship being between the government and the individual.
“This is who the Government is thumbing their nose at – the person who needs care, not our members, who provide the care. Our members are working as hard and as efficiently as they can to keep their doors open, to care for our elders.
“If Government can’t acknowledge that positive and sustainable change can only happen if we are included, then we are all in trouble. The $6 million fund might still be there to help seniors transfer from hospital, but it is increasingly likely that there will be nowhere for them to transfer to,” she says.
Other healthcare announcements
From 2026, patients on long-term medications will be able to receive 12-month prescriptions where it’s clinically safe to do so, rather than just the three-month prescriptions currently available.
“While patients will still collect their medication from a pharmacy every three months, they will no longer need to return to their doctor for a new prescription each time,” Health Minister Simeon Brown says.
“This change could save up to $105 a year in GP fees for patients who need to renew their prescriptions four times annually. It’s a win-win for patients and the health system – fewer avoidable hospitalisations, better health outcomes, and reduced long-term costs.”
About $91 million has been allocated to this over four years.
Meanwhile, another $447 million has been allocated to improved access to primary care, urgent and after-hours care, and 24/7 access to digital primary care for online medical consultations, making it easier for people to get advice and prescriptions from their homes.
Another $1 billion has been added for additional cancer treatments and other Pharmac approved medicines.
KiwiSaver changes
Employee and employer contributions to KiwiSaver will increase to 3.5 percent from 1 April 2026 and to four percent from 1 April 2028, the latest Budget announced. These contributions are currently at three percent.
However, the government contribution (of up to $521.43 a year currently) will be halved to 25 cents per dollar contributed and be removed entirely for those earning over $180,000 from 1 July.
“We’re pleased to see the Government take on board some of the key recommendations we made in 2024, including introducing a higher default contribution rate of 4 percent for employees and matched by their employers, and extending employer contributions to those aged 16 and 17,” Retirement Commissioner Jane Wrightson says.
“We’d also recommended employer contributions for those over 65 but unfortunately the latter has been excluded from these latest changes.”
While the increased contribution rates for salary and wage earners will help those who qualify for an employee contribution, the reduction in the government contribution will hit low-income earners, Māori women and the self-employed the hardest, Wrightson says.
Also included in the changes was a new temporary savings reduction, which will mean members can opt to reduce their contribution rate to three percent for up to 12 months. This can be done multiple times; if taken, their employer can match them at that rate.
