Katherine Rich: Business NZ CEO on the potential changes to the KiwiSaver scheme, Budget 2025

A promise today's budget will deliver real growth for the economy. 

Finance Minister Nicola Willis is hours away from unveiling her 'No BS Budget', claiming there'll be no frills or excess.  

The Government's been slowly teasing figures, concentrating on balancing the books through cuts and reprioritisation in spending. 

Business NZ CEO Katherine Rich told Mike Hosking the government knows its role in business recovery. 

She says they're the first government in a long time that's methodically looked through what can be done to make things easier. 

It’s also been teasing changes to the KiwiSaver scheme, with more to be revealed. 

It's expected to increase KiwiSaver's default contribution rate from the current 3% as well as means-testing its own annual contribution, up to $521 dollars. 

Rich told Hosking they'll be keeping a close eye on things. 

She says it depends on how it's phased in over time, so businesses can factor it into wage negotiations and salaries. 

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Episode Transcript

Speaker 1 (00:00):
Or business mixed bag as recovery slowly moves forward. I
mean I mentioned manufacturing, improving services, not confidence fragile. Katherine
Rich's Business New Zealand CEO, and she is with us. Catherine,
morning to you, good morning. The big picture is the
government focused on business and cognizant of its role in
a recovery.

Speaker 2 (00:18):
Yes, it is, and I think that's why this is
a growth budget. Many of the announcements with regard to
business have already been made, But I haven't seen a
government in my lifetime that's so methodically looked through every
single facet of business and asked the question, what can
we do to make things easier? So the the firm,
the R and D tax credit, they're reviewing SVT, they're

(00:38):
improving immigration, foreign direct investment. It'd be good if there's
some kind of accelerated depreciation for plant and equipment. But
there have been a lot of announcements that make it
will contribute to a better business in this country.

Speaker 1 (00:52):
These talked about key we server changes. Are you going
to squeal at that or welcome that if they come
to pass.

Speaker 2 (00:58):
Look, I think most business owners understand that over a
period of time we have to do more to help
the country save. If there's an announcement on that today, it
very much depends on how it's phased over time, because
businesses over time can factor it into wage negotiations and salaries.
But certainly there are some big picture issues like superannuation

(01:20):
and savings that need to be dealt with if we're
ever going to get back into a surplus. So today
we're looking for a credible confidence building budget.

Speaker 1 (01:33):
I hope you're right, Catherine, appreciate it. Catherine rich out
of Business in New Zealand's For more from the mic Asking Breakfast,
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