The Wire with Oto

The Budget for 2025 came out last week on Thursday, with news for the nation on how funds will be allocated over the coming year. While some of the budget announcements were new news, the government had staggered others over the previous few weeks. In the new announcements were changes to Kiwisaver and the Jobseeker benefit. 

The Kiwisaver changes involved a 50% reduction in the government’s Kiwisaver contribution, from around $500 a year to around $250. To compensate, the government increased the minimum employer and employee contributions from 3% to 4%. While this means people will end up with similar or greater amounts of money in Kiwisaver, it also means people will have access to less money right now. 

The Jobseeker changes were also announced in the budget, with further restrictions added for 18-19-year-olds applying for the benefit. 18-19-year-olds applications will now be tested against their parents’ incomes, restricting large groups from accessing the support. 

These changes both appear to primarily affect young people. While the government claims to care so much about education and schools, they seem comfortable with taking support away from Aotearoa’s young adults as soon as they finish high school. In our weekly catchup with National’s Tom Rutherford, Wire host Castor asked about the Kiwisaver and Jobseeker changes in this year’s budget.

Many studies show that mental health affects physical health, and vice versa.. But during a recession and cost of living crisis...   what are the negative effects of financial insecurity- or one’s perception of their financial status, and comparing it to others? A recent study highlighted these correlations.

Producer Faith spoke to Dr. Brian Don from the University of Auckland about this study, and what is says about modern society.

With the announcement of how the government is planning to spend money over the next year comes the question of how this will impact the National Party’s chances of being re-elected into power in next year’s General Election.

When presenting her work to Parliament, Finance Minister, Nicola Willis, said that “every Kiwi knows this government has their back”.

However, elements of the Budget have been criticised by opposition parties and various activist groups, with opposition leader, Chris Hipkins, calling funding decisions in the Budget “strange and unnecessary”.

The Budget can play a major role in whether a government will be re-elected or not. 

Labour’s 1958 Budget, for example, which has since become known as the ‘Black Budget,’ resulted in Finance Minister at the time, Arnold Nordmeyer, imposing additional taxes on cars, alcohol, and tobacco, in an attempt to limit the need for international goods during the payments crisis in late 1957. This caused political tensions, and as a result, Labour lost the 1960 general election after one term.

News and Editorial Director and Monday Wire Host, Joel, spoke to Brian Roper — an Associate Professor in Politics at the University of Otago, about how Budget 2025 will impact National’s chances to be re-elected, and his opinion on what party, or parties, will make up the next government.

Concerns have been raised about how little youth homelessness has been addressed in Budget 2025, as well as how funding is being allocated, that will impact vulnerable rangatahi and tamariki.

Boot camps have received a $33 million boost over four years to create more camps, $1 billion has been stripped from emergency accommodations, and 18 and 19 year olds are set to have their Jobseeker and emergency benefits tested against their parents. 

News and Editorial Director and Monday Wire Host, Joel, spoke to Aaron Hendry - the co-founder and general manager at Kickback; an organisation aimed at tackling youth homelessness, about Budget 2025, and how youth homelessness should have been addressed in the Budget.