Nicola Willis: Finance Minister on the reaction to Budget 2026, the levy on banks

Finance Minister Nicola Willis hopes her Budget will convince voters to re-elect the Government in November.  It includes significant investment in infrastructure and health.  It also shows a return to surplus in the 2028/29 financial year – a year sooner than previously forecast. The forecast uses the OBEGALx measure, which excludes ACC.   Willis told Mike Hosking her message is simple.  She says the Opposition would borrow and spend more, which would put the country's future at risk.  The Finance Minister is also defending the new 1% levy on banks, insurers, and other financial market participants, which would be used to regulate the sector.  Willis yesterday directed banks not to pass on the cost of the levy to their customers, saying they’re the most profitable companies in the country and do very well for themselves.  Asked by Hosking why she didn’t increase tax on high-earning individuals like himself using the same logic, Willis said she didn’t want him “flying off overseas”.  She says that the idea that taxing high-earners more and they’ll be more inclined to invest in New Zealand doesn’t make sense, but when it comes to banks, it’s a tiny, tiny levy relative to their bottom line.   The move brings New Zealand into line with other countries like Australia and the UK, Willis says.  LISTEN ABOVE See omnystudio.com/listener for privacy information.