What can business leaders expect in Budget 2025?
What can business leaders expect in Budget 2025?
Growth has emerged as a leading issue for New Zealand business leaders right now, according to our May 2025 BDO Business Wellbeing Index. These leaders will be eagerly anticipating the May 22 delivery of Budget 2025 to see how the Government might encourage economic and business growth.
So what can we expect to be announced in support of business leaders? Below, BDO Tax Partner Alan Scott and Infometrics CEO Brad Olsen speak to journalist Madison Malone about what levers the Government might pull in the upcoming Budget. For more, stay tuned to our timely Budget Day coverage.
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BDO Budget Day coverage On the day, our expert BDO team will be ready to share timely insights and details of key expenditure items promptly after exiting the media lockup in Wellington. Tune in after 2:00 pm on Thursday 22 May to read our insights and learn how this year’s Budget will affect your business. Subscribe to our mailing list to be the first to hear about our Budget commentary. |
Hope for growth in the Budget
Our May 2025 BDO Business Wellbeing Index shows just 42% of New Zealand business leaders felt positive about their business performance all or most of the time in the last two weeks. As market conditions slowly improve, more business leaders will likely divert their focus from ‘survival mode’ in managing day-to-day finances to focus on potential avenues for business growth. So what might the Government announce in the Budget to help support business growth?
"Given the BDO Business Wellbeing Index shows growth is at the forefront of business leaders’ minds, leaders will be looking to the Government to show some certainty around what their growth plans are for Budget 2025 to give them confidence that there will be growth later in the year.” - Alan Scott, BDO Tax Partner
Tax settings
The Government has announced the operating allowance for Budget 2025 has been reduced from $2.4bn to $1.3bn. With purse strings tight, there are several tax measures the Government might take to help alleviate business pressure:
- Provide relief for asset purchases, such as accelerated capital allowances or increasing the low value asset threshold.
- Review the infrastructure settings in New Zealand to make it easier for non-residents to invest in public-private partnerships.
- Confirm any changes to the foreign investment funds regime and fringe tax benefit rules.
For more Budget coverage, tune into BDO’s coverage on our dedicated Budget website section and our LinkedIn page for updates direct from Parliament on May 22. Subscribe to our mailing list to be the first to hear about our Budget commentary.