New Zealand budget day sees huge protests across the country, but ...

The first full budget for the new centre-right government in New Zealand has been released with Finance Minister Nicola Willis saying it was for Kiwis "experiencing a prolonged cost-of-living crisis". 

But once again, this government had to fight for attention for its economic policies.

Because on the same day Ms Willis delivered her first budget speech, there was a crowd of protesters that had marched through Wellington towards parliament.

The national day of action was called by a group protesting a bill that seeks to redefine the principles of the Treaty of Waitangi.

Young New Zealanders were a focus of the protests across the country. (Getty Images: Fiona Goodall)

Organisers and leaders of the Māori Party called on people to join marches, car convoys and to go on strike to protest against the budget and government policies considered to be attacks on Indigenous people.

There were demonstrations from early morning across the country, with thousands gathering for hikois, or marches, including on motorways where protesters had planned to drive slowly to stall commuters and create traffic congestion.

They showed up in their thousands across cities including Auckland, Christchurch and Hamilton as well as a number of regional towns, before the Wellington march kicked off and headed to parliament.

In the capital, Māori Party MP Hana-Rawhiti Maipi-Clarke had some questions for the prime minister and his coalition leaders.

'We're on the edge of revolution'

Protesters were telling the government to 'toitu-te-tiriti' or 'uphold the treaty' as they marched across New Zealand.  (Supplied: John Miller )

To form government, Prime Minister Christopher Luxon had to sign coalition deals with two minor parties and so much of the policy shifts around New Zealand's Indigenous people come from those agreements.

There is a growing list of policies that have led to calls for protest from The Māori Party, a national hui, or meeting, called by the Māori King and a massive show of strength on Waitangi Day.

A bill to redefine the principles of the Treaty of Waitangi — New Zealand's founding document and something that underpins Māori claims of sovereignty  The disbanding of the Māori Health Authority The repeal of the world-first tobacco ban — something that was predicted to improve the health of Māori and Pasifika people Policies to discourage the use of Māori language and to make English an official language of New Zealand The repeal of a law that requires the Ministry for Children to place Māori kids within the care system with members of their own extended family Proposed fast-track legislation that would allow ministers to approve major projects despite environmental or cultural concerns And most recently, a bill to disband Māori wards in local governments — something The Maori Party described as "the last straw"

Protesters said the demonstrations were about the future of New Zealand.

"We had children in the forefront of our hikoi because why? We're doing this not for this generation but for our future generations because if we're facing this now, are they going to be fighting the same issues?" Māori health leader Tureiti Moxon told local media. 

Dave Letele addressed the crowd in Auckland before they marched through the CBD.  (Getty Images: Fiona Goodall)

Dave Letele runs a food bank and community-based fitness program in South Auckland and told local media he was hopeful. 

"I'm hopeful that it brings change, but it lets the powers that be know that we're here, stop mucking around," he said.  

"The power of the people still exists. Let's stand together united. I believe we're on the edge of a revolution." 

While there were protests outside, inside, the government pushed ahead with its budget announcements and delivered the detail on its tax reform — something the electorate has been waiting for since October. 

Now we can look at the details and get a sense of how New Zealand is promising to make life easier for its citizens. 

Protesters want a bill to define the treaty principles bill to be killed off.  (Supplied: John Miller )

New Zealand and Australian cost-of-living measures compared

The first budget from New Zealand's new three-party coalition government has been highly anticipated. 

The National Party campaigned on getting the economy and the country 'back on track', but since then, the downturn across New Zealand has deepened.

In the lead up to the election in October, political analysts reported that nearly every indicator showed New Zealanders were planning to vote for who they believed could best tackle the cost-of-living crisis.  

Since then, so much of the national conversation has been about race relations, but this budget was the government's chance to refocus on the economy. 

So what cost-of-living measures have been announced and how do they compare with what Australians were promised in our budget earlier this month? 

New Zealand Finance Minister Nicola Willis delivers the government's first full budget at the Beehive executive building Wellington. (AAP Image: Ben McKay)

New Zealanders have on Thursday learnt about the details of long-promised tax cuts and all income earners look set to save on their tax bill. 

"We want working people to keep more of the money they earn," Ms Willis said.

"We want to ease the cost-of-living pressures people have been under for so long.

"From 31 July, personal income tax thresholds will rise."

New Zealand has no tax-free threshold, but the first bracket will now include people earning up to $15,600 per year, up from $14,000. 

The middle two brackets have increased too, with anyone earning $70,001 to $180,000 now sitting in the 33 per cent bracket.

In Australia, the stage three tax cuts come into effect in a month's time on July 1.

For the 8.2 million taxpayers who earn between $45,000 and $135,000 a year, this means tax relief of between $804 and $3,729. 

In Australia's May 14 budget, the government announced all households would receive a $300 electricity rebate; in New Zealand there is no sign of direct cost-of-living payments or bill rebates, but there are notable changes to payments for families. 

"From July 31, the in-work tax credit — which helps support low-to-middle income working families with children — will be increased by $50 a fortnight," Ms Willis said.

"Families with young children will also benefit from the new FamilyBoost childcare payment I announced in March. 

"From 1 July 2024, parents and caregivers can get back up to 25 per cent of their early childhood education fees, to a maximum fortnightly amount of $150." 

Also announced in the budget was an increase to the international visitor levy — a tax tourists from countries other than Australia and Pacific nations pay to enter the country.  

The inflation challenge

Like Australia, this New Zealand budget had to provide relief for families struggling with a high cost of living while also not being inflationary. 

Ms Willis linked spending by previous governments to New Zealand's inflation challenge.

"Big government spending has fueled inflation and caused a significant deterioration in New Zealand's fiscal position," she said.

"New Zealand has been borrowing to pay for the groceries."

Ms Willis says this government is going to operate on much less and plans to spend $3.2 billion each year of this parliamentary term.

Widespread cuts to the public service have already been announced, with more than 4,000 jobs expected to go. 

Inflation in New Zealand is now predicted to be back in the target band in the third quarter of 2024 and dropping to 2.5 per cent rather than 2.9 per cent by year's end.

"Ultimately the Reserve Bank is responsible for getting back to that inflation target, but we're doing our bit," Ms Willis said.

The cash rate in New Zealand has been on hold for a year at 5.5 per cent. 

Economists had lost hope of any cuts before the end of 2024, but with the unemployment rate starting to climb and business confidence falling over recent months, economists are wondering if the Reserve Bank of New Zealand might go sooner. 

As in Australia, all eyes now turn to how the tax relief will impact inflation and the next decisions of the central banks.