Budget 2025 NZ: What KiwiSaver, Best Start & Jobseeker Changes Mean for Everyday New Zealanders

Budget 2025 brings a wave of major policy changes that will directly impact the everyday lives of New Zealanders — from young workers just starting KiwiSaver, to families relying on Best Start payments, and young jobseekers navigating a tighter welfare system. This breakdown highlights how the budget affects Kiwis and what it means for your wallet, your future, and your whānau.

KiwiSaver Changes:
In a move that will reshape retirement planning across New Zealand, the government has reduced its KiwiSaver contribution rate — now offering just 25 cents per $1 contributed, down from 50 cents, with a capped annual payment. High-income earners ($180,000+) will lose access to government contributions altogether. Meanwhile, the minimum employee contribution will increase from 3% to 4% over the next three years — a change that especially impacts Kiwi employees managing tight household budgets. The good news? From July 1, 2025, 16- and 17-year-olds will become eligible for government and employer contributions — a win for financial literacy and early investment in Kiwi youth.

Best Start Payment Adjustments:
From April 2026, the Best Start payment will be means-tested across all three years, rather than just after the first year. This will affect middle-income families earning over $97,000 annually. While the government frames this as a step toward more targeted support, many Kiwi families may feel the pinch, especially with the rising cost of living in cities like Auckland and Wellington.

Jobseeker Support Reform:
In a significant welfare shift, the government will introduce a “parental income test” for 18- and 19-year-olds applying for Jobseeker support starting in 2027. If their parents earn enough to support them, they may no longer qualify for the benefit. This change is expected to disqualify nearly 9,000 teens — raising concerns among community groups and youth advocates across Aotearoa.

These Budget 2025 reforms reflect the government’s push for fiscal tightening amid global economic pressures, including trade volatility and slower GDP growth. For Kiwi investors, business owners, and families, it’s more important than ever to understand how policy shifts affect long-term financial planning, social support access, and broader economic stability in New Zealand.

Whether you're planning your retirement, starting a family, or supporting a young adult through tough times, this budget carries critical implications for life in Aotearoa.

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Daniel Chyi 戚钊

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