'Once the books are back in the black... a National Government will be in a position to consider tax relief', says Nicola Willis in fiscal plan

National's election fiscal plan shows a pathway to potential tax relief, says finance spokesperson Nicola Willis, but it won't be considered until the books are "back in the black and surpluses are growing." 

“Now is not the time to cut taxes," Willis said on Monday.  "National’s priority is to get on top of the debt first so that our kids and grandkids aren’t left with a bigger bill and to ensure we have a bigger buffer to withstand future global shocks."

Willis said the "responsible thing to do now is reduce debt and invest in frontline services, especially health and infrastructure."

"Once the books are back in the black and surpluses are growing, a National Government will be in a position to consider tax relief. But the priority is making the forecasts a reality by delivering a return to surplus and less debt."

National's net cost of its election promises, outside health cost pressure funding, was $470 million on average per year, she said.

National's fiscal plan - Capital commitments

“We have set aside a total of $15.4 billion for additional health investment over the next four years, which includes National’s medicines and bowel screening election commitments," Willis said.

"That still leaves $7.5b for other cost pressures and new initiatives, including the usual yearly uplifts for areas like education and policing."

National's fiscal plan - Policy commitments

National would continue with the $2.4b operating allowance, which Labour has also pledged to maintain, and National would also continue with $3.5b capital allowances for Budgets 2027 and 2028, and $5b thereafter.

Willis said National would drive overall government expenditure down towards 30% of GDP and "keep government debt on a downward trajectory towards 40% of GDP and maintain debt below 40% of GDP over time".

National's fiscal plan - other spending commitments

ACT on Sunday released its fiscal plan, promising a $12 billion cut in government debt in four years, $10b cut from the public service and a bigger surplus than currently forecast. 

And while broad-based tax cuts were not in ACT’s Fiscal Plan, "several strategic tax cuts are,” ACT leader David Seymour said. That includes earnings inside KiwiSaver, crypto and charity donation caps. Seymour previously indicated he would much rather be in a position where the government was in surplus first before rolling out tax cuts. 

Labour released its fiscal plan earlier this month, promising to retain the forecasted return to surplus in 2028/29 and to keep the operating allowance at the $2.4b set at Budget 2026.