The Australian and Aotearoa New Zealand governments have recently released their respective budget updates. These forecasts provide key insights into each country's economic trajectory and policy priorities.
Here's our key insights from New Zealand's Half-Year Economic and Fiscal Update (HYEFU) and Australia's Mid-Year Economic and Fiscal
Outlook (MYEFO).
New Zealand Half-Year Economic and Fiscal Update
The New Zealand government released the Half-Year Economic and Fiscal Update (HYEFU) on 17 December 2024, alongside the Budget Policy Statement 2025.
The HYEFU outlined the government's priorities to restrain future Budget operating allowances, which will remain at $2.4 billion from 2025 to 2028.
The Budget Policy Statement 2025 has set out the government's priority policy areas for next year's Budget. These priorities include:
- Lifting economic growth through measures to address New Zealand's long-term productivity challenges
- Keeping tight control of government spending while funding a limited number of high-priority government policy commitments and cost pressures that cannot be met from reprioritisation.
The statement recognised that the government is working to improve complex regulatory systems, with the new Ministry for Regulation undertaking targeted reviews of existing regulations and promoting effective stewardship of regulatory systems to ensure they are fit for purpose. It also noted there will be a high bar for new initiatives in Budget 2025 and government departments are not expected to receive additional funding.
Continue reading about the HYEFU and Budget Policy Statement 2025 here.
Australian Mid-year Economic and Fiscal Outlook
The Australian government released the Mid-Year Economic and Fiscal Outlook (MYEFO) on 18 December 2024.
MYEFO has confirmed a number of the government's policy priorities, such as:
- Implementing Payday Super
- Delivering the tax cuts for taxpayers form 1 July 2024
- Continuing their commitment to supporting safe and responsible adoption and use of AI and expanding the use of Digital ID.
There were several measures included in MYEFO that are of interest to DSPs, including:
- Payday Super: $404.1 million over four years from 2024-25 to implement Payday Super. The funding will enable the ATO to build and improve its data matching capability and the government to redesign the Superannuation Guarantee charge.
- Modernising Tax Administration Systems: $76 million over four years from 2024-25 for the ATO to modernise income tax reporting systems from 1 July 2026, particularly for trust tax returns.
- Extending and enhancing the Phoenix Compliance Program: $66.9 million to the ATO and $1.1 million to ASIC to extend and enhance the program for two years from 1 July 2025.
- Boosting the Shadow Economy Compliance Program: Boosting the program from 1 January 2025 to 30 June 2028.
Continue reading about MYEFO here.
DSPANZ looks forward to continuing to work closely with our government partners in Australia and New Zealand on their budget
initiatives. We will provide updates to our members and community through our newsletter and working groups.
DSPANZ members can access a breakdown of the MYEFO measures as well as past budget breakdowns via the Members Only section of our website.