Budget 2026

If you want to develop your listening skills, try these tasks as you listen to the text. The answers are at the bottom of this page. Thanks to Natasha Groves for preparing the tasks.

If you want to listen and read, just scroll down to the text.

Use the vocabulary list to check the meanings of some words before you listen.

Vocabulary

announce – to officially tell people something, especially a plan or decision

rental – in this context, a house that someone is renting

household – all the people who live together in a house

cancellation – a decision that something that was planned will not happen

tertiary – third level of education, after primary and secondary schools. Tertiary education is usually at a university or polytechnic

enrolment – the number of people who have arranged to join a school, university, course

protest – to come together in public to express disagreement or opposition to something

criticise – to say that you think something is bad, or to say what you do not like or think is wrong about something

refugee – someone who has been forced to leave their country, especially during a war, or for political or religious reasons

eligibility – the state or fact of being allowed to do something, for example, because you are the right age, have the right qualifications

bowel – the long tube that carries solid waste from the stomach out of the body

cyber – connected with the internet

upgrade – to improve something and make it more modern

data breach – a situation in which private information can be seen by somebody who is not allowed to see it  

outage – a period of time when something is not working

discount – a reduction in the usual price of something

off-peak – times that are less busy. Off-peak times for public transport are 9am-3pm and after 6.30pm

Try these activities while listening

1. Listening for main ideas

First, just listen to the text, taking notes if you wish. What information can you catch during this first listening?

2. Now listen again and answer the following questions:

  1. What happened last Thursday?
  2. What is a government Budget?
  3. Fill in the gaps: From April _____, people in social housing will be expected to pay _____ percent of their income towards rent, up from _____ percent. That will leave _____ families in social housing worse off by $_____ per week.
  4. What scheme is being cancelled?
  5. How much money will this cancellation save the Government?
  6. By how much will universities be able to increase their fees for domestic students next year?
  7. Why did university students protest on Budget Day?
  8. Why is there an extra $10 million for English of speakers of other languages programmes for the next two years?
  9. What do Trades Academies provide?
  10. How much new spending is there on health?
  11. What will new mothers be able to do?
  12. At what age will people be eligible for bowel screening?
  13. What will become an official ID card?

News story

Last Thursday the Minister of Finance, Nicola Willis, presented the Government’s Budget to Parliament. The Budget states how much income the Government has, which comes mainly from taxes, and how much it plans to spend in the coming financial year.

Some points in the Budget were actually announced before last Thursday. One was a change in support for people in social housing and private rentals. From April 2027, people in social housing will be expected to pay 30 percent of their income towards rent, up from 25 percent. That will leave 84,000 families in social housing worse off by $30 per week. This will save the Government some money, and they will use that to increase the accommodation supplement for households in private rentals. That will make 110,000 families better off by around $15 per week.

Another pre-Budget announcement was the cancellation of the fees-free tertiary education scheme. This scheme was introduced by the Labour Government in 2017 to make the first year of tertiary study free. The current Government changed it to the third year from 2025. Now they are axing the scheme from next year, which will save the Government $1 billion over four years.

On Thursday the Minister of Finance announced extra funding of $284 million to cover increased enrolments in tertiary education. However, there is no increase in subsidy rates. This means that the Government is not going to give more money to tertiary institutions, so the Budget allows them to raise their fees for domestic students by up to 6 percent next year.

University students protested on Budget Day in Auckland, Hamilton, Wellington, Christchurch and Dunedin. They are angry about the end of the fees-free scheme and possible fee increases next year. They criticised the Government for ending the scheme now, when some students started their studies thinking that one year would be free.

Other Budget announcements in education are an increase of nearly $2 billion over the next four years for schools and early childhood education. There is an extra $10 million for English for Speakers of Other Languages (ESOL) programmes for the next two years, because of increased demand from new immigration and children born in New Zealand to migrants and refugees. There is also $212 million to continue the Healthy School Lunches programme in 2027. Some of the money saved from stopping the tertiary fees-free scheme is allocated to Trades Academies, which provide trades and technology courses for senior school students (years 11-13).

In health there is $5.8 billion of new spending. That includes $34 million to give mothers a guarantee of staying in hospital for at least three days after giving birth. It also includes $33 million to extend the eligibility for bowel screening from 58- to 56-year-olds. In addition, the Budget allocates $680 million in capital spending on health infrastructure, including redevelopments at hospitals in Palmerston North, Tauranga, and Hawke’s Bay, and a new building at Whangārei Hospital. It also allocates $153.6 million over four years for Health NZ to expand cyber security monitoring and to upgrade IT safety systems. There have been problems with data breaches and IT outages in the past year.

The Minister of Finance also announced an initiative to make the Supergold card an official identity card. In New Zealand people aged 65 and over have a Supergold card which gives them discounts and special offers, such as free off-peak public transport. The Budget allocates $43 million to make the card a photo ID card. The Government says this will help some older people who have difficulty accessing some services, such as banks, which require photo identification.

Note (not in the recording) regarding the three-day stays in hospital for mothers: The $34 million will be used to increase the number of maternity beds and staff, over four years. This will enable three-day stays. In the first two years, first-time mothers will be prioritised.

Answers – you don’t have to write a complete sentence as long as you have the key idea in your answer.

a. What happened last Thursday?

The Minister of Finance, Nicola Willis, presented the government’s Budget to Parliament.

b. What is a Government Budget?

The Budget states how much income the Government has, and how much it plans to spend in the coming financial year.

c. Fill in the gaps: From April 2027, people in social housing will be expected to pay 30 percent of their income towards rent, up from 25 percent. That will leave 84,000 families in social housing worse off by $15 per week.

d. What scheme is being cancelled?

The fees-free tertiary education scheme

e. How much money will this cancellation save the Government?

$1 billion over four years

f. By how much will universities be able to increase their fees for domestic students next year?

Up to 6 percent

g. Why did university students protest on Budget Day?

They are angry about the end of the fees-free scheme and possible fee increases next year

h. Why is there an extra $10 million for English of speakers of other languages programmes for the next two years?

Because of increased demand from new immigration and children born in New Zealand to migrants and refugees

i. What do Trades Academies provide?

They provide trades and technology courses for senior school students (years 11-13)

j. How much new spending is there on health?

$5.8 billion

k. What will new mothers be able to do?

Stay in hospital for at least three days after giving birth

l. At what age will people be eligible for bowel screening?

56

m. What will become an official ID card?

The Supergold card.