Economy & Cost of Living

Our Values

Wealth can’t solve all of our problems, but it makes most of them them easier. The cost of living crisis is half about high prices, and half about having a low wage economy. We need policies that will make it easier to produce and provide, with more investment in better technology and skills, with more entrepreneurial spirit.

The Government cannot create wealth itself, because every dollar the Government has is taxed from someone who created it. What the Government can do is create the conditions and encourage the culture of wealth creation.

We believe success spreads, one person’s success can help, inspire, or give the means to invest in another’s. We should celebrate and encourage success instead of practicing tall poppy.

ACT backs the person who invests in themselves to upskill, works overtime to save a deposit for a farm or a home, or takes the risk of quitting a regular paycheque to start their own business. You shouldn’t be punished for that with ever-increasing taxes or swaths of red tape.

Tax and regulation are needed, but they come at a cost. That’s why we believe Government should be a careful spender, keeping your taxes low, providing only essential services and doing them well. Government should regulate carefully, making rules when there is no other way to solve a problem, and removing red tape when it’s no longer needed.

Our Achievements

ACT has driven many of the Government’s actions to respect taxpayers and drive growth. These include:

• Saving taxpayers billions through careful scrutiny: David Seymour halved the cost of the school lunch programme by insisting it be delivered more efficiently. ACT’s rigorous questioning knocked $200 million off the price of the Waikato Medical School, and David’s Budget spending reviews have saved a total of $615 million so far. By focusing the pay equity regime on genuine gender discrimination, Brooke van Velden saved taxpayers $13 billion. Saving money in Government budgets takes pressure off everyone else’s budgets.

• Delivering real tax relief: ACT delivered immediate tax savings by scrapping the costly ute tax, and made income tax cuts possible by securing $7.5 billion in savings in the mini-Budget. By cancelling wasteful projects such as Let’s Get Wellington Moving and Labour’s RMA reforms, ACT ensured more of your money stays in your pocket instead of being wasted in Wellington.

• Cutting red tape to unleash growth: ACT has rolled back Labour’s anti-business rules so employers can hire with confidence and grow their businesses. We reinstated 90-day trials for all employers, giving them the confidence to take a chance on new staff without the risk of costly dismissal processes. We scrapped Fair Pay Agreements, which would have forced one-size-fits-all pay and conditions on entire industries regardless of local circumstances or business viability. These changes make it easier for businesses to create jobs, reward effort, and invest in their people. ACT is continuing to identify and remove unnecessary regulations that hold back productivity and wage growth.

Our Next Goals

The coalition Government has not gone as far as ACT would like, but it’s gone further than it would have without ACT. We always have more ideas ready, and here are some we continue to advocate.

Deliver a flatter, simpler tax system

ACT has proposed a two-rate income tax system with a top rate of 28 percent, aligning personal, trust, and company tax rates. This will simplify the system, reward effort, and remove distortions.

Cut waste and reprioritise spending

ACT will keep identifying and cutting low-value Government spending so that more resources are left in taxpayers’ pockets and critical services are properly funded.

Remove barriers to growth

ACT will continue repealing unnecessary regulation, making it easier for businesses to invest, create jobs, and lift wages. This includes streamlining consenting processes, opening markets to competition, and removing restrictions that make it harder for New Zealanders to innovate and trade.