Te Ara Toiora The Wellbeing Approach
Since its introduction in 2019, the wellbeing approach has become embedded in Aotearoa New Zealand’s wider public finance system. It centres on the idea that people’s quality of life cannot be determined by traditional economic measures alone, and is integral to Budget 2023.
The wellbeing approach emphasises collaboration across the Government and communities, and focuses on ensuring that the wellbeing of all New Zealanders is at the heart of investment decisions. It is driven by an intergenerational view that works across multiple Budgets to put into action our wellbeing objectives. Budget 2023 builds on our significant investments in previous Budgets to assist New Zealanders with cost of living pressures, take action on climate change and meet our manifesto commitments, while building a strong and sustainable economy resilient to future shocks. Health, housing and education are key areas of focus.
Our wellbeing approach to Budget 2023
The wellbeing objectives
The Public Finance Act requires the Government to set wellbeing objectives for each Budget and explain how they are intended to support long-term wellbeing in New Zealand. The objectives are intended to be enduring, to ensure there is sustained investment across multiple Budgets to address New Zealand’s most significant intergenerational challenges. They are informed by extensive wellbeing analysis, and also incorporate advice from sector experts and the Government’s Chief Science Advisors. The wellbeing objectives are separate from the Government’s shorter-term goals and focus areas, which are intended to support the choices and trade-offs required as part of Budget decision-making.
In the Budget Policy Statement[4] in December 2022, the Government made changes to the Future of Work and Physical and Mental Wellbeing objectives, following the publication of Te Tai Waiora,[5] the Treasury’s first Wellbeing Report. It did so to increase emphasis on improving our young people’s foundational literacy and numeracy skills, educational experience and mental health outcomes.
Our wellbeing objectives for Budget 2023 are:
- Just Transition: supporting New Zealanders to transition to a climate-resilient, sustainable and low-emissions economy.
- Physical and Mental Wellbeing: supporting improved health outcomes for all New Zealanders, particularly the mental wellbeing of our young people.
- Future of Work: equipping New Zealanders with and enabling New Zealand businesses to benefit from new technologies and lift productivity and wages through innovation.
- Māori and Pacific Peoples: lifting Māori and Pacific peoples’ incomes, skills and opportunities, including through access to affordable, safe and stable housing.
- Child Wellbeing: reducing child poverty and improving child wellbeing, including through access to affordable, safe and stable housing.
This Budget makes a strong contribution to all five of the wellbeing objectives, as outlined in the following table.
| Wellbeing objective | Budget 2023 contribution |
|---|---|
| Just Transition | Achieving a just transition means boosting our energy independence by shifting towards a low-carbon economy in a way that supports workers, businesses and communities. Specific initiatives to support this include:
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| Physical and Mental Wellbeing | Good physical and mental health and timely access to care and support are fundamental to New Zealanders’ long-term wellbeing. Specific initiatives to support this include:
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| Future of Work | Enabling all New Zealanders to benefit from the changing nature of work requires an investment in expanding access to training and technology infrastructure. Specific initiatives to support this include:
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| Māori and Pacific Peoples | The ability for many Māori and Pacific peoples to have mana āheinga (the capability to decide on their aspirations and realise them) and build mana whanake (the power to grow sustainable, intergenerational prosperity) is impeded when health, education, housing and social welfare systems do not address multifaceted, intergenerational disadvantage. Specific initiatives to support this include:
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| Child Wellbeing | Investing in a good start in life for our children is one of the most important ways we can ensure the wellbeing of New Zealanders. Specific initiatives to support this include:
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