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Budget 2026 – Budget misses opportunity to respond to growing mental health need – Mental Health Commission

Source: Te Hiringa Mahara – Mental Health and Wellbeing Commission

Te Hiringa Mahara – Mental Health and Wellbeing Commission is disappointed to see no new explicit investment into mental health and addiction services in today's budget.
Of particular concern is the lack of funding for specialist services, where too many people are already waiting far too long to get the help they need.
“At a time when mental health is the leading health concern for New Zealanders, this response does not match the scale of the need experienced across the country every day,” says Te Hiringa Mahara Chief Executive, Karen Orsborn.
“According to the recent Ipsos New Zealand health report, released this month, 61% of New Zealanders say mental health is the biggest health issue facing the country. This Budget does little to ease those concerns.
“A cornerstone of a well-functioning mental health system is making sure support is available long before people reach crisis. We are not seeing enough investment in this, which means people are missing out on vital care.
“It’s critical that when people reach out for help, they have someone to call, someone to respond and somewhere safe and welcoming to go, when and where they need it.
“The current system doesn’t always work well for Māori, young people or those living rurally in particular. This is unlikely to change without investment.
“Last November we welcomed the additional funding announced by Minister Doocey for expansion of crisis cafes, crisis assessment teams and peer-led acute alternatives. This was a step in the right direction, and further investment will enable the much needed expansion of options for people seeking support.
“This budget won’t take us any closer to having a cohesive national approach to crisis support. No matter where you live, you should have a range of support options to choose from.
“We are pleased to see the investment into reducing online harms for young people announced today and acknowledge what it will achieve. We hope this investment reflects youth-led solutions, investment in education and a strong rigorous regulation on platforms and content.
“The longer we put off expanding the range of support in the face of growing rates of psychological distress, the worse it will be for people seeking help,” says Ms Orsborn.
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Budget 2026 – Primary care overlooked again in Budget 2026 – despite known results from investment in primary care – ProCare

Source: ProCare

Primary care has once again been left behind in Budget 2026, with limited clear, targeted investment to match the growing burden of disease through aging, the increasing complexity of patient care, and constrained access to secondary care.

While the Government has committed more than $33 billion to health overall, nearly half of that funding continues to be directed toward hospitals and specialist services, reinforcing a system that prioritises treating illness over preventing it.

ProCare says this approach risks entrenching pressure across the health system rather than relieving it.

Bindi Norwell, Chief Executive at ProCare says: “General practice is the front door of the health system – but it continues to be funded as if it’s an afterthought.

“Research has shown that for every dollar invested in primary care results in between $13 and $15 in savings in secondary care, so we question why primary care continues to be overlooked,” says Norwell.

“Without stronger investment in primary care, we will continue to see pressure build in emergency departments and hospital services. We simply cannot hospitalise our way out of this,” continues Norwell.

“We need a stronger focus on planned, proactive care that deliberately shifts services into primary and community settings, improving access, reducing waiting times, and keeping people well in their communities,” she points out.

Positive step for community services card holders

Budget 26 announced an increase of $800,000 additional funding for Community Services Card holders and people aged 65 and over, who are exempt from the Budget 2024 savings initiative to reintroduce the $5 prescription co-payment for those aged 14 years and over.

ProCare acknowledges this as a step in the right direction, particularly initiatives aimed at improving access through community-based care.

“This is a positive step for equity in primary care. Removing cost barriers for those who need support most helps ensure people can access the medicines they rely on, without financial pressure,” says Norwell.

“Maintaining these exemptions will help improve access to pharmaceuticals, particularly for older people and those on lower incomes, and supports better health outcomes by enabling people to manage conditions early and consistently,” points out Norwell.

Demand rising, workforce stretched

General practice continues to face increasing patient complexity, workforce shortages, financial pressure on practices, and growing unmet need across communities. Without targeted investment, access will continue to deteriorate.

“New Zealand needs a long-term health strategy that recognises growing demand and backs primary care as the foundation of the system; supported by smart investment in workforce, digital tools, and reduced administrative burden,” points out Norwell.

“At the same time, we must shift care closer to home through better planned, community-based services and a more streamlined system, improving access, reducing pressure on hospitals, and delivering better value for patients and taxpayers,” concludes Norwell.

About ProCare

ProCare is a leading healthcare provider that aims to deliver the most progressive, pro-active and equitable health and wellbeing services in Aotearoa. We do this through our clinical support services, mental health and wellness services, virtual/tele health, mobile health, smoking cessation and by taking a population health and equity approach to our mahi.

As New Zealand’s largest Primary Health Organisation, we represent a network of general practice teams and healthcare professionals who provide care to nearly 700,000 patients across Auckland and Northland. These practices serve the largest Pacific and South Asian populations enrolled in general practice and the largest Māori population in Tāmaki Makaurau. For more information go to www.procare.co.nz

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Budget 2026 – Trades Training Positive Feature of Budget 2026 – EMA

Source: EMA

The EMA says the emphasis on Trades Training and channelling high school students into skills and trades, as well as university, is a positive from today’s Budget announcement.
“The confirmed re-prioritisation of funding from the previous Fees Free scheme into trades training could go some way to filling future gaps in the trades, and enhance the work readiness of those leaving our schools and heading into skills and trades-oriented careers,” say EMA Head of Advocacy Alan McDonald.
“The confirmation of an additional 10,000 places in trade academies and around eight new trade focussed courses for high school students is a good use of that Fees Free funding.
“The new Industry Skills Boards (ISBs) will develop those courses, backed by funding of $15 million. Hopefully, the additional funding of $90 million for the New Zealand Qualifications Authority (NZQA) will also see the Authority approve those courses more quickly than its current approval times, and get those courses underway.”
McDonald says the Budget did a bit with not very much, with confirmation of funding for several larger infrastructure projects, while the revised forecasts were not as bad as many expected.
“Getting back to surplus a year earlier than previously forecast (28/29) was a surprise, no doubt helped by the additional taxes and some of the savings identified in recent announcements about the public service.
“GDP growth for this year is down to 1.2% from 1.7%, and will still be challenging, especially reaching the 3.2% forecast in 2028. A lot is going to have to stabilise to make some of these predictions a reality. Unemployment also has a new peak at 5.5% in June this year, up another 0.1% (several thousand jobs) before dropping back.”
McDonald said the other main positive from the Budget was the committed funding for infrastructure.
“Firm commitments to Whangarei’s hospital upgrade and Dunedin’s outpatient clinic, plus buying the land for the new South Auckland hospital, are a boost for the health sector, in addition to land acquisition for 10 new schools.
“Then you get the hard infrastructure like the Cambridge to Piarere road extension in the Waikato, and more than a billion dollars for rail. Road projects around Tauranga and the Waikato improve access to our ports for exporters, while changes further north also bring Northport more into the mix. It’s not clear where the spend on rail upgrades will go, but improving rail connectivity for both Auckland (a fourth main line) and Northport should be among the priorities.
“There wasn’t much to spend, but some of those priorities look to the longer-term.”
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Budget 2026: A real-world look at the road to recovery – BusinessNZ

Source: BusinessNZ

Given the political, economic, and fiscal constraints facing the New Zealand economy, Budget 2026 is fiscally responsible, BusinessNZ says.
Chief Executive Katherine Rich says the Government has approached this year’s Budget with a restrained, real-world lens.
“BusinessNZ wanted to see a Budget which delivered a credible, long-term economic plan to return New Zealand’s accounts back to surplus.
“The Budget’s priorities reflect careful investment decisions in infrastructure, health, defence, education and business regulatory reform. We are delighted to see a significant investment boost for trades, which should double the amount of trade academy places, and provide free trades training for high-school students.
As part of their expert analysis provided to members, BusinessNZ’s economists called today’s Budget announcement a “responsible budget focused on the fundamentals, while meeting the critical needs of New Zealand’s businesses”.
Economist Max Doyle says today’s series of announcements will allow businesses to remain internationally competitive.
“We’re pleased to see a realistic look at much needed infrastructure, rather than election year ‘sugar hits’.”
Chief Economist John Pask says while the key economic indicators were predicted to improve over time, the ability to get back to surplus will be dependent on solid economic growth over the forecast period.
“Given the fraught geopolitical landscape in which this Budget was delivered, these outcomes require an optimistic set of resolutions, some of which are beyond New Zealand’s influence alone.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
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Budget 2026 – ProCare welcomes Government’s cyber security investment

Source: ProCare

ProCare welcomes the Government’s $153.6m investment in strengthening cyber security across New Zealand’s health system, recognising its importance in protecting patient information and maintaining continuity of care.

“Cyber security is fundamental to trust in primary care from both a practice and patient perspective,” says Bindi Norwell, Chief Executive at ProCare. “General practice teams handle highly sensitive information every day, so stronger protections are essential.”

The investment is timely, following recent sector incidents such as the Manage My Health breach, which highlighted the growing risks facing providers and patients.

ProCare supports the focus on improving oversight of third-party systems and establishing more consistent standards across primary care.

“Primary care relies on a wide ecosystem of digital tools. Stronger safeguards, clearer accountability, and closer collaboration with Health New Zealand will help reduce risk and build system-wide confidence.

“It's imperative that Health NZ takes a lead role on this work, thereby allowing general practices to get on with the business of caring for their patients, rather than becoming security experts,” continues Norwell.

“Furthermore, we are conscious that there are changes coming to the cyber security requirements as part of contingent capitation. While we recognise these are important to protect patient data, we need to ensure they are not cumbersome for practices to implement and maintain on a regular basis,” says Norwell.

The emphasis on practical measures such as 24/7 monitoring, specialist capability and regular audits is also welcomed.

“These investments will make a real difference in supporting practices to prevent incidents, respond quickly, and maintain safe, uninterrupted care – while reducing the technical burden on clinicians so they can focus on patients,” concludes Norwell.

About ProCare

ProCare is a leading healthcare provider that aims to deliver the most progressive, pro-active and equitable health and wellbeing services in Aotearoa. We do this through our clinical support services, mental health and wellness services, virtual/tele health, mobile health, smoking cessation and by taking a population health and equity approach to our mahi.

As New Zealand’s largest Primary Health Organisation, we represent a network of general practice teams and healthcare professionals who provide care to nearly 700,000 patients across Auckland. These practices serve the largest Pacific and South Asian populations enrolled in general practice and the largest Māori population in Tāmaki Makaurau. For more information go to www.procare.co.nz

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Budget 2026 robs Pita to pay Paul: NZNO

Source: New Zealand Nurses Organisation
Budget 26 fails to address unmet health needs or nursing workforce shortages and leaves Māori worse off, NZNO says.
Tōpūtanga Tapuhi Kaitiaki o Aotearoa NZNO Kaiwhakahaere Kerri Nuku says Budget 26 is a “money go-round” which requires the health sector to do even more with even less.
“This Budget robs Pita to pay Paul. There is $37 million for Hauora Māori but a $47.2 million programme to immunise tamariki and other Māori health funds has been scrapped.
“Māori are left worse off after Budget 26,” Kerri Nuku says.
Hospital infrastructure spending was welcome but didn’t meet the unmet health needs today, she says.
“The $174 million additional funding for the new Dunedin hospital is much needed. However, funding for the new Whangārei Hospital ward tower has been pushed out until 2031. Hawke’s Bay, Palmerston North and Tauranga hospital redevelopments have funding allocated for design and enabling work which won’t be completed for years.
“This is effectively kicking the can down the road and provides nothing to address the gaps in health services in those communities now.”
NZNO was concerned cost pressure funding of $1.37 billion wasn’t ringfenced, Kerri Nuku says.
“This means that money isn’t guaranteed. The track record of the Coalition Government is the same level of cost pressure funding last financial year was raided by more than $300 million for new unfunded initiatives announced since the last budget.
“For example, any further outsourcing of elective surgeries will have to come from this cost pressure funding. This means that core service delivery is whittled away. This is the funding which is meant to ensure the health sector can tread water,” Kerri Nuku says.
Aotearoa New Zealand’s public health system is funded at a lower level than 16 other OECD countries.
“New Zealanders know their hospitals can’t keep up with current demand and patient needs. Nursing workforce levels around the country have plateaued or declined. A further $826 million doesn’t touch the sides on safely staffing our hospitals to give patients the care they need,” Kerri Nuku says. 
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Budget 2026 – Govt failure to properly tax major banks leaves much needed revenue on the table

Source: Better Taxes for a Better Future

The Government has chosen to make cuts to public services that ordinary working households rely upon, rather than tackling the real challenges of filling the gaps in how we tax excessive corporate profits and wealth. In particular, the failure to adopt a banking levy, supported by a majority of the public, reveals the Government's priorities.

“The Government's failure to advance a levy on big banks shows that the Minister of Finance is more interested in keeping the Big 4 Australian owned banks on side than reining in the excessive profits they're taking from the NZ economy and shoring up our resilience to any future banking failures,” said Kate Stone, Better Taxes for a Better Future spokesperson.

“While the “Prudential Regulation and Supervision” measure is welcome, it will only raise $68.1m in 2027-28, which will go to the Commerce Commission, and does not address the enormous profits banks are making in New Zealand.”

“The Big 4 Australian-owned banks are making enormous profits out of NZ. Their New Zealand profits increased by 25% in real terms over the past 10 years. Meanwhile, ordinary people are struggling to put food on the table,” said Stone.

“The irony is that the Australian owned banks are paying a full bank levy in their own country, but not here. Polling we commissioned from Talbot Mills, released earlier this week, showed widespread support for a banking levy in New Zealand. So it is disappointing that the Government lacked the courage to match what the Australian Government put in place years ago.”

“If we had adopted a levy like Australia that would have generated $275-300 million, and if we'd also adopted an excess profits surcharge as in the UK that would have generated at least a further $250 million. This is revenue that could fund the cost of increasing the housing supplement, without raising the rents for social housing tenants. Or better yet, could be used to build more social housing units. The Government is leaving this much needed revenue on the table,” said Stone.

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Budget 2026 – Transporting New Zealand welcomes infrastructure and energy-focused Budget

Source: Ia Ara Aotearoa Transporting New Zealand

Road freight association Transporting New Zealand says additional transport and infrastructure spending announced in today’s Budget will support economic growth and jobs at a time of significant economic uncertainty.
Transporting New Zealand Chief Executive Dom Kalasih said investments in the Cambridge to Piarere Expressway, state highway resilience, additional strategic fuel reserves, and contingency funding for fuel price support demonstrated the Government was maintaining focus on long-term infrastructure and supply chain resilience.
“The Government has shown a continued commitment to addressing New Zealand’s infrastructure deficit and delivering fit-for-purpose transport infrastructure despite tight fiscal conditions. That’s good news for productivity, safety, and keeping New Zealanders in employment.”
The Budget includes $150 million for additional strategic fuel reserves to strengthen New Zealand’s fuel resilience, along with a $450 million contingency reserve for temporary targeted support if international fuel market conditions worsen.
Kalasih said the Government was sensible to avoid making inflexible commitments on future fuel excise duty and road user charge increases given current global volatility and ongoing cost pressures.
“Given the current levels of international uncertainty, and transport cost pressures on New Zealanders, it makes sense for the Government to keep their options open on when to increase fuel excise and road user charges.”
“There is serious pressure on land transport revenue, and pausing next year’s fuel tax and road user charge increases would delay essential road maintenance and improvements.”
Kalasih was more cautious about increased rail funding, saying previous rail freight investments had delivered mixed results.
“Rail plays an important supplementary role in New Zealand’s freight system, and targeted investments can deliver good outcomes in the right corridors.”
“However, despite substantial investment over recent years, rail freight volumes and market share have been trending downwards. The Government will need to ensure future investment is carefully targeted to areas such as the Golden Triangle, where rail freight demonstrates the strongest commercial and operational performance.”
Kalasih said Transporting New Zealand was continuing to review the Budget in detail and looked forward to sharing further insights with members.
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Budget 2026 – A Cautious Budget That Leaves Room for Bigger Thinking – Business Canterbury

Source: Business Canterbury

Business Canterbury says today’s Budget largely met expectations, delivering a fiscally responsible approach.

Chief Executive Leeann Watson says, “The Minister aptly described this as a ‘Responsible Budget’, and that’s broadly what we’ve seen. Given the signals leading in, we expected a disciplined and relatively conservative package, with limited direct support for business.

“While that discipline is important in the current environment, it cannot come at the expense of building a stronger economic future. At first glance, there isn’t a clear, cohesive growth story running through this Budget, particularly when it comes to lifting productivity, encouraging investment, and supporting the private sector to expand.”

“Many of the initiatives announced will have positive impacts across the business community, but nothing that will substantially shift the dial on driving economic growth and productivity.

“Businesses will ultimately drive economic growth and recovery in New Zealand. While there are some good initiatives such as proposed changes to fringe benefit tax which should reduce compliance burdens, and the doubling of trade training which strengthens the pipeline from school to work, there remains very little targeted at unlocking business investment in productivity at scale.

“We had signalled ahead of the Budget that productivity-focused policies would be the most practical and impactful pathway forward given funding constraints.

“While we didn’t necessarily expect to see all of those tools deployed in its Budget, we do need Government to be using every lever available in the coming months.

“Infrastructure investment remains critical, particularly for regions like Canterbury and the wider South Island.

“Investment in resilient infrastructure is needed, but we also need to get ahead of the curve, not simply fix what’s already broken.

“Now is the time for bold, forward-looking decision making. That doesn’t necessarily require significant new spending, but it does require a clear focus on improving the settings for businesses to invest, innovate and grow.

“Businesses have shown time and again that they are resilient. What they need now is a policy environment that makes it easier to do business and supports long-term growth.

“We will continue working constructively with Government to ensure that happens.”

Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the second largest Chamber of Commerce in New Zealand and the largest business support organisation in the South Island. It advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.

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Save the Children: Budget 2026 offers little relief for children and families living in poverty

Source: Save the Children

Save the Children is concerned for the welfare of New Zealand’s lowest income families, with Budget 2026 offering little additional financial support for those struggling most.
Save the Children New Zealand’s Advocacy Director Jacqui Southey welcomed the investment in education and health infrastructure that supports children, but noted the Budget provides little relief for families reliant on welfare. She says it is unlikely to ease the pressures faced by households and will do little to reduce current rates of child poverty.
“For families reliant on welfare who are already making difficult choices every week about whether to warm their homes, pay for fuel or put nutritious food on the table, sadly Budget 2026 does nothing to make life easier.
“Instead, initiatives such as lowering maximum payments of Temporary Additional Support (saving $196 million) or increasing social housing costs by around $30 a week will be particularly tough for many individuals and whānau.”
Ms Southey says the announcement that around 9000 public service jobs are going to be cut, leaves many New Zealanders feeling increasingly uncertain of their job security. Rangatahi are also very worried about their futures and opportunities they will be able to access.
Says Ms Southey: “Youth are already bearing the brunt of New Zealand’s tough economic environment. The Youth Unemployment rate is the highest in almost a decade, at 15% nationally. Young people are feeling the consequences of lack of job opportunities, and those still in school have told us they are worried about what’s next for them when they finish their secondary education.
“The Fees Free incentive to encourage young people to take on tertiary education has been cut with those in university reeling at their sudden increase in cost and likely debt they hadn’t accounted for. Those considering university studies report being put off and potentially shut out of tertiary study due to the cost of the study, but also their living costs while they study with many students unable to access student allowances.”
We do want to acknowledge the increased investment to support youth struggling to access jobs through vocational learning initiatives. Solutions to enable higher youth employment and opportunities are critically needed.
Ms Southey says it is positive to see the Government’s renewed investment in the Healthy School Lunches programme, breakfast programmes and community food support, at a time when families are increasingly struggling with the rising cost of living, especially with rising fuel costs from the war in the Middle East.
Save the Children would like to see longer term funding committed to ensure a sustainable and adequately funded Healthy School Lunches programme that is critical to tackling rising rates of food insecurity children and families are facing.
About Save the Children NZ:
Save the Children works in 120 countries across the world. The organisation responds to emergencies and works with children and their communities to ensure they survive, learn and are protected.
Save the Children NZ currently supports international programmes in Fiji, Cambodia, Bangladesh, Laos, Nepal, Vanuatu, Solomon Islands and Papua New Guinea. Areas of work include child protection, education and literacy, disaster risk reduction and climate adaptation, and alleviating child poverty.