ACT is releasing what it calls a fully-costed fiscal plan ahead of the election, promising to cut government debt by $12.4 billion over four years without introducing new taxes.
ACT leader David Seymour contrasted the plan with his rivals' approaches. "ACT's Fiscal Plan — Cut the Waste, Grow the Country — is taking the hard road of truth-telling this election with the release of our fully-costed fiscal plan designed to cut waste, grow the economy, and balance the books with no new taxes," Seymour said.
"Our party has 'taxpayer' in its name — the Association of Consumers and Taxpayers. When your party has taxpayer in the name, you don't make up expensive policies in the middle of a television debate. You publish a fully-costed fiscal plan with every dollar accounted for."
The plan targets government spending outside health, education, police, defence, and the Ministry for Children, which Seymour said has grown 20 per cent since 2017 in real, per-person terms. ACT proposes returning that spending to its 2017 level, adjusted for inflation and population growth.
Seymour also pointed to the cost of government debt. "When you're paying over a million dollars an hour in interest on government debt, it's not time to make a virtue of saving money slowly. That is money taken from health, education, infrastructure or lower taxes."
On the size of government itself, he was direct: "It is not credible for ministers to demand public sector savings while there are more ministers in the New Zealand Government than most countries, including nearly twice as many as the Government of Japan. Excessive governance doesn't just send the wrong signal, it is inefficient."
The plan also includes targeted tax cuts — removing tax on KiwiSaver investment earnings, and cuts aimed at encouraging cryptocurrency adoption and charitable giving. "We support greater personal retirement saving and will let more of people's returns compound over their working lives," Seymour said. "Broader tax reductions can follow once the books are back in surplus."
New spending proposed under the plan includes funding pharmacies to handle minor ailments, and a programme allowing Year 11 students to begin investing in shares.
Seymour dismissed the case for more government spending. "Labour and their allies seem to believe greater spending is needed. Somehow, they seem to think, if the Government taxed more and borrowed more it could make better financial decisions than others." He said ACT rejects that on two grounds: New Zealand already spends as much as or more than most Pacific Rim neighbours, and government has not demonstrated it makes better decisions than families and businesses.
"It is immoral to keep borrowing for political promises and sending the bill to the next generation. We are cutting waste, bringing the surplus forward, and using some of those savings to let New Zealanders build greater financial security."
ACT's Alternative Budget will:
- Reduce debt by $12.4 billion at the end of the four-year forecast period
- Balance the budget sooner, with a bigger surplus than currently forecast and no new taxes, by addressing Superannuation and the size of the bureaucracy
- Introduce strategic tax cuts to boost KiwiSaver, cryptocurrency adoption, and charitable giving
- Fund new services including pharmacies addressing minor ailments and a Year 11 share investment programme