The New Zealand Budget was delivered on 19 May 2022. While it mainly focused on cost of living, environment and health sector initiatives, there were some important initiatives surrounding Digital Service Providers (DSPs).
Continued investment in Digital Technologies Industry Transformation Plan (ITP)
The budget allocated an additional $20 million over four years towards two key initiatives from the Digital Technologies Industry
Transformation Plan (ITP):
- Development and growth of New Zealand's Software as a Service (SaaS) community
- Increasing the visibility of New Zealand's tech sector in overseas market including the US, Australia and Europe
The final ITP is expected to be released in the next few months.
New Zealand Income Insurance Scheme (NZIIS)
The Accident Compensations Corporation (ACC) received additional funding to support progress on the design of the scheme as well as to establish systems and operational processes. The 2022 budget has set aside $60 million of total operating funding. The NZIIS is set to become operational in 2024.
Cost of Living Payments
The tax system will be integral to the implementation of the "cost of living payment" initiative which will begin from 1 August 2022 and be administered by Inland Revenue.