ACT leader David Seymour is promising to slash billions from government spending, reduce projected Crown debt by $12.4 billion by 2031 and overhaul the public service as his party puts fiscal restraint at the centre of its 2026 election campaign.
With New Zealand heading to the polls on November 7, ACT is making a pitch to voters concerned about government borrowing, rising living costs and the long-term sustainability of public finances.
But behind the headline promise of lower debt is a sweeping programme of spending reductions, public sector restructuring and changes to superannuation and welfare that could have significant implications for Māori whānau, workers and communities.
$12.4 BILLION LESS DEBT BY 2031
ACT’s fiscal plan, titled Cut the Waste, Grow the Country, proposes reducing projected government debt by $12.4 billion by 2031 compared with existing forecasts.
The party argues that successive governments have allowed public spending and borrowing to grow too quickly, leaving taxpayers facing a substantial interest bill.
Seymour says government debt servicing is costing more than $1 million every hour, money he argues could otherwise support essential services or remain with taxpayers.
ACT wants to return the Crown accounts to surplus sooner than currently forecast, without introducing new taxes.
Its plan would reduce annual spending by approximately $9.5 billion once fully implemented, concentrating the reductions outside welfare and designated frontline services.
The $12.4 billion figure is a reduction against projected debt, rather than a promise to eliminate government borrowing or repay the entire national debt.
SMALLER GOVERNMENT, FEWER MINISTERS
A central feature of ACT’s proposal is a significant reduction in the size of government.
The party wants to consolidate the public service into 19 departments and reduce the number of ministers to 18.
It also proposes returning government spending outside protected frontline services to approximately 2017 levels per person, after adjusting for inflation and population growth.
ACT says frontline services in health, education, policing, defence and services for children would be protected from this particular spending reduction.
However, the wider programme includes reducing administrative expenditure, consolidating departments, cutting some government programmes and reducing foreign aid spending.
The party argues these changes would eliminate duplication and improve accountability.
Critics question whether reductions of this scale could be delivered without affecting the availability and quality of public services.
RETIREMENT AGE TO RISE TO 67
One of the most significant proposals is ACT’s plan to gradually increase the age of eligibility for New Zealand Superannuation from 65 to 67 by 2035.
Under the proposal, the retirement age would increase progressively rather than change overnight.
ACT says special arrangements would allow earlier access for people who have spent a substantial proportion of their working lives in physically demanding occupations.
The party argues the change is necessary to manage the long-term cost of superannuation as the population ages.
However, raising the retirement age could have significant implications for people working in physically demanding industries, those experiencing poor health and communities with lower life expectancy.
For Māori, the proposal raises particular questions about equity.
Māori continue to experience poorer health outcomes and lower average life expectancy than non-Māori, meaning a higher retirement age could affect how long some whānau receive superannuation.
The effectiveness and fairness of ACT’s proposed early-access arrangements would depend on their eligibility criteria and implementation.
KI WISAVER TAX CHANGES COME WITH A TRADE-OFF
ACT is also proposing changes to KiwiSaver.
The party wants to remove tax on qualifying investment earnings within KiwiSaver funds, arguing that this would allow retirement savings to grow more quickly over time.
However, the policy comes with a significant trade-off.
ACT would also discontinue the annual government KiwiSaver contribution for eligible members.
That means some savers could lose an existing government payment while potentially benefiting from lower taxation on investment returns.
The overall impact would depend on individual savings balances, contributions, investment performance and eligibility.
ACT says the changes would encourage long-term saving and investment without increasing government borrowing.
DISABILITY AND WELFARE SPENDING UNDER SCRUTINY
The fiscal plan also proposes changes to disability-related benefits.
ACT wants more consistent medical certification and reassessment requirements for some recipients, arguing this would better distinguish between people unable to work and those who could return to employment with appropriate support.
Its financial projections include savings of approximately $653 million over four years from these changes.
The party says people with genuine and enduring conditions would retain appropriate support.
However, the proposal raises questions about how eligibility would be assessed, what safeguards would apply and whether people with complex or fluctuating health conditions could lose assistance.
ACT also proposes restricting access to welfare for some new migrants through a five-year stand-down period.
Labour has criticised the fiscal plan, warning that the proposed reductions could place additional pressure on vulnerable New Zealanders and essential public services.
HEALTH INVESTMENT AND A NATIONAL CANCER CENTRE
Alongside its spending reductions, ACT is promising targeted investment in selected services.
The party supports establishing a National Cancer Centre, with approximately $2 billion identified as a funding contingency.
It also wants to expand the role of community pharmacists so patients can receive treatment for more minor illnesses without needing to visit a general practitioner.
ACT argues that improving access to pharmacy services could reduce pressure on GP clinics and hospitals.
The party is also proposing investment in policing, education initiatives and selected infrastructure projects.
Its wider approach is to redirect funding from areas it considers inefficient into services it believes can deliver better results.
WHAT WOULD THE PLAN MEAN FOR MĀORI?
The proposals could have substantial implications for Māori communities.
Changes to superannuation eligibility, disability benefits and public service funding are particularly relevant given existing disparities in health, employment, income and access to services.
ACT’s broader public sector reform agenda also includes proposals to remove or consolidate government agencies and functions focused on particular population groups.
The party argues that government services should be delivered according to individual need rather than ethnicity.
However, Māori organisations and advocates have long argued that targeted approaches are necessary to address entrenched inequities and meet the Crown’s obligations under Te Tiriti o Waitangi.
There are also questions about how reduced departmental spending would affect programmes supporting Māori economic development, housing, employment, education and community wellbeing.
ACT maintains that a stronger economy, lower government debt and more efficient services would benefit all New Zealanders.
The challenge would be demonstrating that those benefits could be achieved without worsening existing disparities.
LABOUR QUESTIONS THE COST OF THE CUTS
Labour finance spokesperson Barbara Edmonds has challenged ACT’s fiscal proposals, arguing that voters deserve greater clarity about which services and entitlements could be affected.
Labour has highlighted the proposed increase in the retirement age, changes to disability support, reductions in public service spending and removal of government KiwiSaver contributions.
ACT rejects the argument that more government spending necessarily produces better outcomes.
Seymour maintains that reducing debt and restoring fiscal discipline are essential to securing New Zealand’s economic future.
The competing positions reflect a central divide in the election campaign: whether the next government should prioritise faster reductions in spending and borrowing or maintain greater investment in public services.
ELECTION 2026: BIG PROMISES, BIG QUESTIONS
ACT’s fiscal plan is one of the clearest statements of its economic priorities ahead of the general election.
The party is promising a smaller state, lower projected debt, changes to retirement savings and superannuation, and targeted investment in selected health and public services.
But the scale of the proposed savings means the detail matters.
Reducing government spending by billions of dollars would require substantial policy changes, and the consequences would depend on which programmes were reduced, how reforms were implemented and whether projected savings were achieved.
For Māori whānau, the central questions will be whether the changes improve economic opportunity, protect access to essential services and address existing inequalities.
ACT is promising $12.4 billion less debt by 2031. The political battle now is over what New Zealanders would gain from those savings, what they might lose and who would carry the greatest burden of change.
With advance voting underway, those questions are likely to remain central to the economic debate as voters prepare to decide the country’s direction on November 7.
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