Point of Order: Buzz from the Beehive - 20/12/23

Treasury’s fiscal update shows eliminating budget deficits will be hard work, but Willis stays wedded to tax relief promise

Four fiscally focused press statements flowed from the office if the Minister of Finance this morning as Nicola Willis released her government’s “mini-Budget” alongside the Treasury’s Half Year Economic and Fiscal Update (HYEFU).

The aim – obviously – was to persuade us the government’s financial management is in better hands than it was before the election and Willis will be doing her darndest to pave the way to cut taxes.

Point of Order: Critics say incoming Finance Minister should go slow on mini-budget

But isn’t that what the country is crying out for?

As the party leaders of National, ACT and NZ First make progress on the framework of the government they are shaping, incoming Finance Minister Nicola Willis has to get to grips with rebalancing the country’s finances and at the same time pull together a mini-budget to present before Xmas.

It wouldn’t be easy for an experienced minister but for one new to the job, the question is: will she get it right?

Point of Order: New finance minister gets to work as the economy needs a fresh stimulus: will her mini-budget do the job?

The business of forming a government and putting new Cabinet ministers to work seems unduly ponderous — incoming prime minister Christopher Luxon has yet to have a roundtable talk with coalition partners David Seymour and Winston Peters But at least one of the key personalities in the Luxon team, incoming Finance Minister Nicola Willis, is reported to be beavering away on her initial tasks, as well as recruiting staff for her Beehive office.

Frank Newman: Mini-budget delivers on promises

The new government's mini-budget presented to Parliament on 14 December delivered on Labour's promise to reverse the legislated tax cuts that were due to come into effect on 1 April next year. They will instead direct that money into welfare.

The amount of money is significant. Had the tax cuts not been reversed, some $8.4 billion would have been distributed to taxpayers over the next four years by increasing the threshold at which higher marginal tax rates take effect. All taxpayers would have benefited.