“National’s policy announced today is a good start to addressing the cost of living, but is too easy for Labour to steal. The best way to address the cost of living crisis for all Kiwis is a tax cut for every earner,” says ACT Leader David Seymour.

“Labour’s announced a remarkably similar policy in November last year. There is a fairer way to support Kiwis struggling with the cost of living than giving handouts. Under ACT’s fully costed tax changes from our alternative budget a sole parent with two children earning $70,000 would save $2,276. Importantly, all earners would benefit, every teacher, nurse, and police officer would keep more money under ACT.

“A commitment to cutting wasteful spending from National is welcomed. But the next Government can’t just trim the sails, the country needs to sail in a whole new direction.

“More than ever New Zealand needs ACT’s fully-costed Alternative Budget that reduces government spending without touching frontline services, reduces the deficit that causes inflation, and reduces taxes so people keep more of their money to fight cost increases they’ve already seen.

“We have identified how expenditures could be reduced by $6.8 billion with measures including an end to corporate welfare and returning the number of bureaucrats to the 47,000 Labour inherited.

“That allows $3.3 billion of tax cuts, reducing the middle income tax rate down from 30c to 17.5c in the first year. A nurse with one child, for example, earning $70,000 would receive around $2,300 in tax relief.

“People earning between $2,000 and $48,000 will get a Low and Middle Income Tax Offset of up to $800 that offsets the additional $980 in income tax. They will also receive an additional $253 in carbon tax refunds for every person in their household, leaving them better off overall. ACT’s tax swap leaves everybody better off.

“The next ACT/National Government will be committed to cutting wasteful spending. The importance of ACT is that we will stop the Government finding new reasons to spend the money, and instead return it to Kiwis via tax cuts. That’s the fair way of helping all Kiwis who are grappling with the cost of living crisis.”

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