ACT's Cost of Living Policy
ACT proposes tax cuts funded by reducing government spending, removing regulations that inflate the cost of goods and services, and allowing more competition in markets like groceries. They support repealing the Grocery Industry (Improving Competition) Act and instead enforcing existing commerce law.
In simple terms
Cut taxes, reduce government spending, and make markets more competitive so businesses have to keep prices low.
Impact to New Zealanders
Tax cuts boost household spending, but reduced government revenue forces cuts to public services like GP visits and road maintenance that poorer communities rely on most.
Businesses cut costs by reducing staff training and safety standards; workplace injuries rise, shifting long-term care costs to individuals and families rather than employers.
Decades of underinvestment in public infrastructure and education create a less-skilled workforce, making New Zealand less competitive globally and widening wealth inequality structurally.
Green Party's Cost of Living Policy
The Green Party proposes a Super-Wealth Tax on individuals with net assets over $10 million (excluding the family home) to fund a guaranteed minimum income, free public transport, free school lunches, and free GP visits. They argue addressing inequality is the key to reducing cost of living pressure.
In simple terms
Tax the wealthy to fund a guaranteed income for everyone, make public transport and healthcare free, and provide free meals in schools.
Impact to New Zealanders
Government spending rises sharply; taxes on high earners increase, potentially prompting some wealthy professionals to relocate overseas, reducing local expertise.
Free public transport reduces car use, lowering fuel tax revenue; government must raise taxes elsewhere or cut services to fill the budget gap.
Guaranteed income may reduce pressure on workers to accept low wages; employers in struggling sectors face higher labour costs, potentially accelerating automation.
Labour's Cost of Living Policy
Labour introduced a Cost of Living Payment of $350 for low and middle income earners, extended free and half-price public transport, and maintained the fuel excise duty reduction. They also increased Working for Families and benefit rates and focused on building more affordable housing.
In simple terms
Give direct cash payments to low income earners, keep public transport cheap, and increase benefits and Working for Families payments to help families cope.
Impact to New Zealanders
Landlords raise rents knowing tenants have more cash, offsetting gains for renters while benefiting property owners.
Government borrowing increases to fund payments, raising interest rates across the economy and making mortgages costlier for first-home buyers.
Wage growth stagnates as employers pay less when govt subsidises workers' income, creating long-term dependency on government support.
National's Cost of Living Policy
National focuses on reducing inflation through fiscal discipline, cutting wasteful government spending, and reducing regulatory costs passed on to consumers. They removed the fuel excise duty reduction and instead focus on long-term economic management to bring down living costs.
In simple terms
Cut government spending to reduce inflation, deregulate to lower business costs, and manage the economy carefully so prices stabilise.
Impact to New Zealanders
Government cuts reduce public services like healthcare staff, forcing middle-income families to pay privately while low-income households delay treatment.
Deregulation lets businesses operate cheaper but reduces workplace safety inspections, increasing workplace injuries that burden the health system and workers' families.
Reduced investment in education and infrastructure creates a less skilled workforce, making NZ businesses less competitive globally and lowering long-term wage growth for workers.
NZ First's Cost of Living Policy
NZ First focuses on reducing fuel taxes, limiting immigration to ease wage competition, supporting NZ-made products, and opposing policies that increase energy costs. They also support superannuation increases tied to wages and oppose any changes to NZ Super eligibility.
In simple terms
Cut fuel taxes, limit immigration to protect wages, buy New Zealand products, and protect superannuation for older New Zealanders.
Impact to New Zealanders
Lower fuel costs boost spending on other goods, but reduced tax revenue forces cuts to roading maintenance, creating potholes that damage vehicles.
Stricter immigration limits tighten labour in healthcare and hospitality, pushing wages up there but forcing businesses to raise prices, offsetting fuel savings for many households.
Buying local-only goods raises product costs and reduces competition, while higher superannuation spending without immigration workers supporting the tax base strains government budgets for education and infrastructure.
Te Pāti Māori's Cost of Living Policy
Te Pāti Māori proposes a universal basic income, removal of GST from food and basic necessities, free healthcare and education, and progressive wealth taxes. They argue Māori are disproportionately affected by cost of living pressures and that structural economic change is needed.
In simple terms
Give everyone a basic income, remove GST from food and essentials, make healthcare free, and tax wealth to fund it all.
Impact to New Zealanders
Businesses raise prices on non-food items to offset lost GST revenue; renters see landlords pass on wealth tax costs through higher rent.
High earners and investors relocate overseas, shrinking the tax base; government must either cut services or raise taxes on middle-income workers.
Basic income becomes baseline expectation; wage bargaining weakens as employers assume workers have guaranteed income, potentially lowering job market wages overall.