Budget breakdown: student edition

Budget 2022 brings us six billion bucks of new spending – a record for Aotearoa New Zealand.

Since the announcement on Thursday, it’s been analysed by all and sundry, with MPs once again relishing in linguistic flair to grab headlines.

Joke’s on them. Massive has left their words to a measly fourth paragraph.

So, what does this “backwards” (National leader Christopher Luxon), “brain drain” (ACT leader David Seymour), “balanced” (Finance Minister Grant Robertson) budget mean for us students? Are we a bit better off? Or still on the bones of our bums?

The headline number: a $350 cost of living payment

Well, this was a sweet surprise. But in these trying times it’s more an Allen’s lollipop that goes too quick, than a gobstopper, the gift that keeps on giving.

There are a few boxes you need to tick to make the cut:

a. be 18 or older

b. have earned less than $70,001 in the last financial year

c. don’t currently get the Winter Energy Payment.

If that’s you, you’ll get the cash in three instalments from August to October. It stacks up to about $27 a week.

Half price public transport fares are staying, for now

In another temporary measure, the half price fare scheme and reduced fuel tax will now kick on until the end of August – a two-month extension.

If you’ve got a Community Services card, though, half-price public transport fares will be permanent for you from mid-September.

Health is wealth...

...but if you don’t have wealth, healthcare can be hard to come by. The Government is spending big to try and change that. Here are some key figures as part of the biggest health investment ever:

• A higher chance of getting help for those in mental health crisis, thanks to $27.5 million for community-based services and $10 million to grow the workforce. In March, the Mental Health and Wellbeing Commission report revealed specialist mental health services were under pressure, and long wait times were a problem – a shock to absolutely no one who has sought such help. This money will specifically address those issues. For all you Massey Wellington readers, there’s also an extension of the Piki pilot for the next years, offering free primary mental health and addiction support for 18 to 25-year-olds.

• More money for your pearly whites. The emergency dental grant – which you can access if the dentist says it’s urgent, but you can’t afford the bill – will jump from $300 (which barely covers a filling) to $1,000 (better, thanks). It kicks in on 1 December. Treat yourself to a trip to the murder house this Christmas?

• Hopefully, it’ll be easier to get into your GP. A $102 million boost to community health will fund more primary healthcare workers so we can all get the help we need, when we need it, relieving pressure on hospitals.

An overdue win for solo parents

Sole-parent beneficiaries will finally get their full child support payments. The previous rule – described as “outdated” by Prime Minister Jacinda Ardern – meant the Government held on to payments to recover the cost of welfare.

The change, which takes effect mid-next year, results in a median gain of $24 per week.

What we’re all here for: tertiary education

The budget makes room for a 2.75 per cent increase to tertiary tuition and training subsidies. There’s also $10 million earmarked to establish Te Tahua o Te Reo Kairangi, a fund to support programmes delivering higher levels of te reo Māori proficiency.

In a statement, the New Zealand Union of Students’ Associations slammed the fact that the spend doesn’t even come close to covering inflation, which is currently 6.9 per cent.

It’s another example of the Government presenting tertiary institutions with an ambulance at the bottom of the cliff, says NZUSA President Andrew Lessells.

“We need a universal student allowance to make sure that we can afford to live while studying and we need a well-funded tertiary sector to make sure that the education we’re engaging in is actually up to scratch,” he says.

An economist’s hot take

We don’t claim to be experts on, well, anything here at Massive. So, we roped in some help and asked economist Brad Olsen – the country’s 25-year-old go-to economic expert, youngest Justice of the Peace, 2020 Young Wellingtonian of the Year and media darling – whether the Government’s budget will make everything okay again for students struggling to make ends meet.

“Wishful thinking.”

Right, then. Not a good start. Unsurprisingly, it’s the cost of living that’ll continue to hurt the most. Brad continues, “There are a lot of students who go to university and they're really struggling to somehow do a full day's worth of education, and then sometimes a full day's worth of work.

“That’s a really challenging position, so the likes of the $350 payment won’t be enormous but could at least try and take the edge off.

"The pressure there on student budgets is going to be quite intense for a while,” he says.

While people will try and make the most of the support available between now and the end of October, Brad says we’re left with an open question of ‘where to next?’

Do tell, Brad.

“We could well see the Government need to provide further support or at least consider what different support could look like,” he says.

"There are likely to be a number of lower income New Zealand households that will still be doing it tough for the next few years.”

So, despite a small bit of respite for some and a few wins to sweeten the deal, looks like it’s the bones of our bums for the foreseeable.