Wednesday, 12 May 2021

ACT’s Budget for the Battlers


“The ACT Party has today released our alternative budget, a budget for middle New Zealand, the Kiwis who work hard but are being squeezed from every direction,” says ACT Leader David Seymour.

“Rents are increasing rapidly following decades of poor decisions by successive Governments. This has put home ownership out of reach for many now and is making it impossible for future generations.

“Kiwi battlers are paying more at the supermarket and at the pump, and they’re getting hit with new taxes while wages fail to keep up.

“ACT’s alternative budget will make $11.2 billion in savings, taking on $23 billion less debt and deliver $3.8 billion per year in tax cuts.

“ACT will implement a middle income tax cut. We will cut the 30 percent marginal tax rate to 17.5 percent. We will reverse the 39 percent tax rate and we will reverse the Government’s interest deductibility change.

"The average earner will get between $1286 and $2107 in their pocket a year from tax cuts. Under Labour if you're a Wellington bureaucrat your wages will be frozen, under ACT you'll have more money in your pocket.  

“We’ve always been told if you study hard, get good grades, get a good job, save money, and invest wisely, you’ll get ahead. Under Labour if you work hard, you get taxed more. Under Labour there are fewer reasons to bother trying.

“If you’re a Kiwi battler trying to get ahead and trying to build a successful future for your children, this Labour Government will find a way to tax or penalise you.

“Fundamentally, our tax system just isn’t fair. Middle New Zealand workers are being taxed as if they’re rich, paying the 33 percent tax rate at just $70,000 a year.

“We all need to do our bit but it wouldn’t feel like such a burden if we knew we were paying for high-quality infrastructure, health and education, but right now much of that money is being aimlessly thrown around. Why should workers’ pay more tax to support Labour’s wasteful, ideological spending?

“At the same time, the Government is piling on debt which is currently at $105 billion. That’s $28,995 for every taxpayer. If it’s not you paying it back, it will be your children and their children. 

“Everything this Labour Government does is either about taxing and redistributing, or dividing us against each other. There is a better way, as ACT is showing today in our budget for the battlers.

“We can create the conditions for new opportunities. We can grow out of the challenges our country faces. But we need to stop dividing New Zealanders against each other and have honest conversations about the way forward.”

ACT will:

  • Cut the 30 percent tax rate to 17.5 percent
  • Cut the 39 percent tax rate to 33 percent
  • Reverse the Government’s interest deductibility change
  • Reverse the Government’s recent workplace relations changes, including the Matariki public holiday, new sick leave entitlements, and 90-day trial changes
  • Reinstate 90-day trials for all businesses
  • Pause minimum wage increases for three years
  • Introduce a streamlined consenting process for resource projects and land access
  • Repeal the ban on new offshore oil and gas exploration permits
  • Repeal the Zero Carbon Act and reject the Climate Change Commission’s recommendations
  • Pass the Regulatory Standards Bill 
  • Exempt investors from OECD countries from the need to receive OIO approval to invest here
  • Establish an Epidemic Response Unit
  • Repeal and replace the Resource Management ACT and replace it with separate Environmental & Urban Development Acts.

A copy of our Budget can be found here.