Budget 2025 is a mixed bag for road freight
The 2025 Budget holds few surprises for the transport sector. With the economy just ticking over, the Government has opted for a level of fiscal restraint not seen in a decade.
However, one standout Budget measure is the Investment Boost – where businesses can deduct 20 per cent of the cost of new assets in the year that they buy them.
For freight operators eyeing a new truck or other big-ticket items, this could offer timely relief. The move comes as only 27 per cent of road freight companies report sustainable operating margins, according to the recent National Road Freight Survey.
The Investment Boost aims to stimulate long-term growth, with projections suggesting up to a 1.5 per cent boost to GDP over the next 20 years.
That’s a potential win for freight as broader economic activity increases but it is also money in the pockets of businesses that can use that money to develop and grow right now.
A further $219 million has been allocated to repairing roads in the East Coast and Hawke’s Bay regions after 2023’s extreme weather events, which will be welcome news for the area’s freight operators and wider community.
There was also good news for rail operators and users with $461 million going into the Rail Network Investment Programme and a further $143 million dedicated to rail renewals in Auckland and Wellington.
But it remains to be seen if enough funds have been put aside for the National and Regional Roads of Significance, as no extra expenditure has been announced in this Budget.
The South Island also appears to have been largely neglected in terms of transport and infrastructure spending.
