Finance Minister Bill English has come up with a tax package "that almost looks like white rabbits out of the hat", New Zealand Institute of Chartered Accountants Institute tax director Craig Macalister says.
It had not seemed possible to produce a tax package to please everyone, but Mr English came close, and may have reignited the economy in the process, Mr Macalister said.
"A lot of people will be quite happy with it. We might see a bit of confidence return to the economy."
The Government announced across the board personal tax cuts from October 1, amounting to $16.15 a week for someone on $30,000, to $89.04 for a person earning $120,000.
With tax cuts estimated to cost $14.3 billion over four years, it opted to claw back revenue of $2.2b for that period by increasing GST to 15 percent, from 12.5 percent.
The company tax rate will also drop, from 30 percent to 28 percent.
Law firm Chapman Tripp labelled it "the biggest overhaul of the tax system since 1987", and one with the capacity to wean New Zealanders off their propensity to over-invest in property.
Mr Macalister said the economy had been on hold for the budget, so struggling small businesses might now get a shot in the arm.
While higher income earners would benefit most, that was simply what happened with a proportional income tax system - they paid more tax in the first place, he said.
"We have to be realistic - people earning over $70,000 are not wealthy."
While property developers would lament the clampdown on their ability to claim depreciation, it was hard to argue with the Government approach, even if the institute was "not entirely" in favour of the move.
If there was a flaw in the budget, it was the Government placing great store in Inland Revenue being able to collect an additional $745 million over four years, he said.
While it had received $120m to help, Mr Macalister doubted Inland Revenue would collect as much as budgeted, as it was possible those it chased down would have no money.
Changes to the tax treatment of investment property invited a behaviour change by New Zealanders away from investing in property to investing more in New Zealand and productive activity, Auckland Chamber of Commerce chief executive Michael Barnett said.
"If we achieve just that from this budget it will represent a game change we have needed for decades."
KPMG chief executive Jan Dawson called the tax initiatives the most wide reaching in 20 years.
"The National Government has taken a smart but bold approach to bringing in the changes in those areas where the Government believes that they can build the recovery of the New Zealand economy."
Wellington Regional Chamber of Commerce chief executive Charles Finny said tax reforms would provide a solid platform for economic growth by increasing incentives to work, save and invest.
It was the fairest budget in more than a decade, Employers and Manufacturers Association chief executive Alasdair Thompson said.
"But the level of overseas debt is forecast to run up to 100 percent of GDP, with the government deficit rising to $10.4 billion and its payments totalling $70.7 billion and revenue forecast at $60.3 billion.
"The forecast growth in social welfare costs means all income tax paid is in effect spent just on funding social welfare.
"This underlines the need for ongoing effort in the public service to increase efficiency and productivity."
Investment Savings and Insurance Association (ISI) chief executive Vance Arkinstall welcomed the tax changes, saying it was a step in the right direction, creating a platform for greater savings by New Zealanders.
