Budget 2025: Cuts and Concerns for Pasifika

Still reeling from the impact that the Pay Equity Amendment Bill will have on Pasifika women, today’s announcement comes on the heels of already dire conditions for Pasifika communities. 

Budget 2025 delivers significant results for Pacific communities in Aotearoa and the wider region, with major cuts to climate finance, business support, and cultural initiatives— and some small gains in education and community safety.

The Ministry for Pacific Peoples faces a $36 million cut, on top of $26 million last year. This includes closing the Tauola Business Fund, though $6.3 million annually remains for Pacific business development through existing trusts, while Tupu Aotearoa, a key employment and training programme, has been reduced to $5.25 million per year.

“This budget comes as they cut Pacific women’s pay and young Pacific people’s retirement savings to pay landlords, the tobacco lobby, and oil and gas companies. 

Where is the justice for our people? At a time when more than one in 10 Pacific people are unemployed – cutting these Pacific business and unemployment programmes will take them even further backwards” - Opposition MP Carmel Sepuloni

The National Fale Malae, the flagship Pasifika Fale currently being built in Wellington has had the pin pulled, with $6.6 million of the funds allocated to this build going to the broader Arts and Heritage portfolio, including the National Music Centre. 

In education, a new tutoring programme will support Year 9 and 10 students at some high Pasifika attended schools, but this comes at the cost of ending three tailored Pacific education initiatives.

On a positive note, $14 million has been committed to Māori and Pasifika Wardens, including $1 million over four years for Pasifika-specific support like training and transport.

Climate advocates have strongly criticised the budget’s $100 million annual cut to Pacific climate finance. The funding, now merged into general aid, breaks a global pledge to triple climate finance by 2030.

“Our leaders have turned their backs on our Pacific neighbours,” said Oxfam Aotearoa’s Nick Henry, warning that life-saving support for water, crops, and housing is now at risk.

While $368 million remains for international development, Pacific communities now face greater competition for a shrinking pool of aid—and fewer dedicated resources to meet urgent climate and development needs.

Wider scale budget announcement will impact Pasifka people further with access to the benefit for 18-19 year olds now requiring parental means tests, and cuts to Kiwisaver contributions. 

A very small benefit for our communities, will be potentially be an extra $14 a fortnight on average under the Government’s latest Working for Families changes.

“Budgets are a choice – build for the future or cut. National have chosen to cut and steal from women and young people’s back pockets, sending a clear message that they don’t care about Pacific communities." - Minister Sepuloni

Under the 2025 Budget

• Weekly Best Start payments for parents will be means-tested.
• Medicine prescription durations will be extended from three months to 12.
• A $6.6 billion tax incentive has been unveiled for businesses.
• $2.5b has been allocated to education, including a $380m boost to learning support and $15.7 million for private schools.
• More SuperGold cardholders will also be able to get rates relief.
• Roads, schools and hospitals will get a $2.7b boost.
• More than $30m is being devoted to bootcamps for recidivist youth.
• RNZ has had funding slashed by $18m.