The 2011 budget was announced by the Minister of Finance, Bill English on 19 May 2011.
The main areas targeted by the budget included government expenditure, asset sales, disaster recovery and government entitlements, including Kiwisaver, Working for Families and Student Loans.
Here are the main points from the 2011 budget:
- Operational cost savings within government of $5.2 billion over 5 years
- Significant infrastructure investment including ultra-fast broadband
- Obtain a mandate at this year’s general election to adopt a Mixed Ownership Model for 4 state owned energy companies. Shares would be offered via initial public offerings
- Establish a $5.5 billion recovery fund to help rebuild Christchurch
- Kiwisaver – retain the $1,000 government kick-start, halve the member tax credit from 1 July 2011 to $521, subject employer contributions to Kiwisaver to Employer Superannuation Contribution tax from 1 April 2012 and From 1 April 2013 employee and employer contributions to the scheme to rise from 2% to 3%.
- Working for families abatement thresholds are changed
- Rules around student loans are tightened