The Cost of Labour - ACT

The Cost of Labour


The Cost of Labour


The Cost of Labour

$2,279 per family

By 2021, the average household will be paying $2,279 more in tax each year to fund Labour's reckless spending promises. That’s almost two weeks' wages for the average household. Hardworking taxpayers are bearing the cost of Labour.

Labour is hurting New Zealand with more taxes and more reckless spending.

We need to do much better.

ACT believes you should keep more of what you earn. But when politicians do take taxpayer money, they should spend wisely. That’s how we keep taxes lower for hardworking Kiwis. Read ACT’s plan for the fairest tax system in the world.

Labour's Tax Grab

Despite Jacinda Ardern promising in September 2017 that she wouldn't introduce any new taxes, Labour has increased or introduced eight taxes to pay for its reckless spending.

  1. Higher fuel taxes (NZ Herald)
  2. Auckland regional fuel tax (Stuff)
  3. Higher road user charges (Road Transport Forum)
  4. Five-year bright line test/capital gains tax (
  5. Ringfencing rental losses (Stuff)
  6. Higher tobacco taxes (NZ Herald)
  7. Visitor tax (NZ Herald)
  8. Waste tax (Stuff)

Labour's spending spree

  1. Fees-Free has been a flop. It will cost you $2,600,000,000 but has failed to increase the number of students going to university. Instead, it is paying for the degrees of well-off students who would have gone to university anyway and will end up with high-paying jobs.
  2. You will spend $3,000,000,000 on the Provincial Growth Fund but it has only created about 616 full-time jobs. This fund is really about Winston and NZ First trying to buy votes.
  3. Labour’s 2020 election bribe will cost you $12 billion. Grant Robertson has decided to buy votes with your money before he’s even figured out what that money will be spent on. This kind of reckless spending means that you pay for it in higher taxes. (Newshub)

Freedom to Earn

ACT's plan to get better value for your money and the fairest tax system in the world:

  1. ACT will spend taxpayers' money responsibly and get better value by reducing wasteful spending like handouts for business and university students from well-off families. At the same time, we will maintain spending on core services like health, infrastructure and primary and secondary education.
  2. Introduce a 17.5 percent tax rate on every dollar earned by workers and businesses giving New Zealand the fairest, simplest and most competitive tax system in the world.

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