Kia ora koutou,
Budget 2026 was released by the Government yesterday, and we’ve run through most of the major announcements to see where they affect the building and construction sector.
Large businesses get useful assistance with transitioning off gas. Kiwi households still left out in the cold. The lack of a decision on the Ratepayer Assistance Scheme is a missed opportunity. It costs government a relatively small $7m, will help deliver billions in savings and improve energy resilience and economic activity.
I’m happy to see that more schools and hospitals being built, all steps in the right direction, There’s a great opportunity to build these to efficient, healthy standards that the private sector has adopted, saving the taxpayer money and ensuring quality builds.
These are long term investments – let’s seize the opportunity and ensure they deliver quality results for Government and Kiwi families.
Gas transition loan guarantee scheme
The most important Budget announcement came earlier this week, with news of the new loans guarantee scheme to help big gas users move away from using gas.
The Gas Transition Loan Guarantee Scheme initiative is expected to make up to $1.2 billion of bank loans available to businesses to eliminate or reduce their dependency on gas. The Crown will guarantee 80 per cent of each supported loan in return for banks passing on lower interest rates to borrowers.
This is great first step and one that we’ve been calling for. Now it’s time to offer similar help to those households who have faced multiple energy price rises recently, some of 20% or more.
Here’s our full NZGBC response to the gas loan programme:
Key Budget initiatives in our sector:
Incentives for Growth fund for councils
It’s great to see some support for local councils which are trying to improve housing developments. Councils that consent more homes will be given money out of this $400m fund to help pay for infrastructure such as roads and pipes in new suburbs. It will be interesting to see how this is administered and plays out.
Developers building to Homestar reduce infrastructure costs and can improve resilience to climate events. There’s an opportunity for councils to promote that developers build efficient resilient homes.
Capital spending for Construction of hospitals and schools
$680m is allocated for hospital capital investment. This is allocated to a 160 bed tower in Whangarei, and redevelopments in Tauranga, Hawkes Bay and Palmerston North
There is funding for 10 new schools and construction of 232 new classrooms and purchasing land at Queenstown for a new school.
Housing Flexible Fund – Further Investment for Social Housing and Other Housing Solutions
This initiative provides funding to support the delivery of up to 2,250 social homes and other housing solutions to be delivered over a two-to-three-year period starting from 2028/29
When funding the building of affordable homes, Government could seek certification to the Homestar standard – this will help ensure affordable bills, energy security and comfortable homes that have reduce moisture and do not overheat, a significant issue in many new build homes.
Education
The Budget increases school operations grants and early childhood funding but freezes most tertiary subsidies.
One area of interest is the welcome announcement of $69 million over four years to double the number of secondary school students attending Trades Academies to 20,000 by 2030.
We are strong supporters of more students taking up apprenticeships in the building and construction sectors - they are the ones building the next generation of healthy, efficient homes and buildings.
New spending on solar for schools
This initiative provides funding to the Community Renewable Energy Fund which is administered by the Energy Efficiency and Conservation Authority (EECA), allowing for a dedicated Solar on Schools grant programme in collaboration with the Ministry of Education.
Government says this new grant will provide schools with “a combination of solar panels and batteries and/or energy management systems that will allow schools across the country to benefit from savings on electricity bills.” This $10m per year initiative is funded through the ‘Energy Funding Reprioritisation.
This is a great step, but needs to include the residential and wider commercial sector. Our manifesto recommends supporting greater uptake of rooftop solar and batteries through low–or zero-interest loans kick starting large uptake that can really help drive energy resilience for New Zealand.
Resource Management Reform – Planning system implementation
This initiative provides funding to implement the new planning system that will support delivery of housing, clean energy, infrastructure and growth, while maintaining environmental protections.
Funding supports the development and implementation of national instruments; including improved data and analytics (including the development of the New Zealand Flood Map.)
2026 NZGBC Manifesto: Building a smarter, lower cost energy future for Kiwi families
Our 2026 manifesto asks political leaders to focus on a simple idea: how to use energy smarter, starting with the places we live and work.
Buildings currently consume nearly a quarter of New Zealand’s electricity and a growing share of gas — much of it just to heat rooms and water.
The manifesto outlines a series of practical, affordable actions:
• Updating the Building Code to reflect modern energy standards.
• Cutting red tape to unlock energy-efficient investments.
• Providing clearer information for buyers and renters.
• Supporting uptake of heat pumps, rooftop solar and battery storage.
These are not expensive or radical changes. They are sensible, proven solutions that will save money and strengthen our energy security.
Pictured: Taking our 2026 manifesto to political leaders
We’ll keep advocating for our members to see real progress in efficient, healthy, high quality homes and buildings across New Zealand.
Ngā mihi nui
Andrew Eagles