Despite cuts to many social programmes, increased spending on defence, a film industry subsidy, and company tax breaks mean a surplus will have to wait.
Government contributions to Kiwisaver—New Zealand’s equivalent to Australia’s private superannuation scheme—are to be halved to 25 cents for every dollar a worker contributes as part of cuts across the social sector to pay for additional spending on police and defence.
The contribution will be capped at $261 (US$155) a year, while the minimum a worker and employer must contribute to the scheme will rise from 3 percent of earnings to 4 percent, to be actioned in two stages over the next three years.
