Sector Update
Sector Update
Kia ora tātou,
My update this month is a little longer than usual, but I wanted to let you know about the outcome of the Independent Rapid Review (IRR) and funding changes post-Budget 2025. We know there is interest in the IRR in particular, but we want to assure you upfront that while any changes from the IRR will have an effect on the Sport NZ Group, they are very unlikely to directly impact you.
Independent Rapid Review
The Government commissioned the IRR to run a “health check” over Sport NZ, something which they had also done with other government agencies. The IRR shows that we operate efficiently and effectively with sound strategies and governance in place. The report also finds that:
- we have adopted a robust approach to reaching our budget reduction target savings and that we have identified credible saving options
- our operational spending is within the acceptable range and our back-office costs benchmark favourably compared to public sector averages. In addition, consultant and contractor use is trending down and staff turnover is relatively low.
On the back of the report, the Minister will progress minor changes to our governance, and changes to our strategic policy function and monitoring arrangements with the Ministry for Culture and Heritage. The Minister has also asked us to explore how we can - with other relevant government agencies - support a reduction in youth offending and recidivism.
The changes are in line with directives to all government agencies to focus on consistency and improving accountability. In our context, moving the strategic policy function is so we have the same structure as other Crown Entities. It is common across government for a ministry and Crown Entity to manage different elements of policy work. For example, the Ministry of Health’s policy team acts as the strategic arm, setting the “what” and “why” of health policy, whereas one of its Crown Entities, Te Whatu Ora (Health NZ), handles operational policy and the “how” of service design and delivery. In this case, the Ministry for Culture and Heritage is the Ministry of Health and Sport NZ is Te Whatu Ora. From your perspective, you should not see any changes.
Should you wish to read the IRR, it is available on the Ministry for Culture and Heritage’s website.
Hawaiki Hou
As part of the wider Government fiscal sustainability programme, we have agreed with the Minister to focus on short-term gains for our strategy which has resulted in the end of the Hawaiki Hou programme, which had a medium-to long-term focus. The Minister directed that the uncommitted funding from Hawaiki Hou be transitioned to High Performance Sport New Zealand to help with a funding shortfall in the lead-up to the 2028 Los Angeles Olympic and Paralympic Games.
Tū Manawa Fund
As part of Budget 2025, Crown funding for the Tū Manawa Fund will be reduced from $15.2m to $11.39m per annum on 1 July 2025. As the fund is important for delivering our strategy and increasing opportunities for young people to be physically active, we will use lottery funding to continue to fund Tū Manawa at $16.5m per annum until 30 June 2028. This means there will be no changes to Tū Manawa during our strategic period and therefore no changes to your investment.
There are many challenging decisions happening across Government in the current environment. We are committed to communicating with you as soon as possible to ensure transparency for everyone involved.
Thank you for your ongoing support and I look forward to continuing to work with you on keeping tamariki and rangatahi active. As always, if you have any questions, please reach out to your Partnership Manager or myself.
Ngā mihi nui,
Raelene
Latest news
Ngā kōrero o te wā
Providing positive opportunities with Active As
Active As supports 50 secondary schools and wharekura to provide positive and inclusive opportunities for their students to keep active. The programme is making a difference by boosting students happiness, confidence and overall physical activity levels. Find out more in our year 1 evaluation.
Potential changes to fringe benefit tax
Inland Revenue (IR) has proposed changes to fringe benefit tax that could result in higher tax costs for some sport and recreation organisations. Sport NZ has submitted feedback outlining our concerns for IR to consider. We will keep you updated as any potential changes become clear.
You can find out more about the options for change to the fringe benefit tax on IR’s website.
Events and opportunities
Ngā kaupapa me ngā whiwhinga
Join us for the next Sport NZ and Te Hau Kori seminar
In partnership with Te Hau Kori, we’re excited to present the next seminar in our ongoing series. Join us in Wellington on 18 June 2025 for the next in-person seminar: ‘The case for promoting a physically active society’.
If you missed the first one, ‘The potential of sport within the justice system’, the presentation is available on Sport Tutor.
Join the futures network
We’re forming a network of sector representatives, academics, and local and central government professionals interested in the future of sport and recreation. Facilitated by Head of Strategic Foresight Dave Adams, this group will meet quarterly to explore trends, tackle challenges and collaborate on key issues. Dave will also provide regular updates on futures topics. If you're interested – or know someone who would be – please contact Dave Adams.
New resources
Ngā rauemi hou
Active all year round report
This new report reveals how tamariki and rangatahi participate in physical activity across different seasons and settings. Discover when and where they’re most active and ways to better support them throughout the year. By understanding these patterns, we can design targeted strategies, programmes and facilities to achieve our shared goal of Every Body Active.
Red cards for ableism comic
What’s stopping disabled young people from being active? Often, it’s not their abilities – it’s our assumptions. ‘Red cards for ableism’, a new comic from Sport NZ and Massey University, highlights real-life scenarios that disabled young people experience and shows how we can do better. Explore the comic and other resources supporting inclusive practice.
What an evolving global geopolitical landscape means for sport
Sport is increasingly affected by global tensions, as seen in the recent disruption to cricket due to the India-Pakistan conflict. Sport NZ’s latest futures report explores key global political trends, whether we’re at a turning point and how sport must adapt to emerging challenges and opportunities.
Quarterly disrupter scan – May 2025
See the latest scan, highlighting the major disruptors and opportunities facing New Zealand’s sport and recreation sector over the next two to five years.
Community stories
Ngā kōrero mō ngā hapori
Connecting to wellbeing through kai at Kereru Park Campus
Kereru Park Campus priortises wellbeing, integrating kai, wai (water) and physical activity into everyday school life. Guided by Te Whare Tapa Whā, kaiako (teachers) share knowledge with ākonga (students), who then pass it on to their whānau. This holistic approach promotes physical, emotional and whānau health across all learning areas.
Building confident, active tamariki in Porirua
Ko Wai Au is reshaping how tamariki in Porirua build resilience and respond to bullying. Supported by Tū Manawa via Nuku Ora, over 600 tamariki are gaining confidence and respect through te ao Māori and movement. Led by Porirua Whānau Centre, the programme provides tamariki with strategies to develop self-control and adaptability.
Sense Rugby expands inclusive sport nationwide
Sense Rugby is helping disabled young people thrive through sport with the support of Sport NZ’s Disability Inclusion Fund. Thanks to this inclusive programme, Cam from Hawke’s Bay now feels he belongs in sport, and participants like Zac and Luis are stepping into coaching roles.
Governance
Te mana whakahaere
Deadline April 2026: Incorporated societies re-registration
Did you miss our webinar on incorporated societies and clubs? Watch the presentation for essential information and practical guidance to help your society meet the April 2026 re-registration deadline. If you don’t re-register by this date, your organisation will lose its incorporated status, which has several important implications.
In case you missed it
Mēnā kāore i kitea
Breaking barriers in sport for tamariki and rangatahi
Andy Rogers, Sport NZ’s National Sport Development Consultant, discussed the importance of physical activity on Newstalk ZB. He highlighted efforts to make sport more accessible for tamariki and rangatahi, sharing insights on removing participation barriers and creating inclusive opportunities.
