Labour Party cost breakdown

The Labour Party has announced $22.3 billion in new spending over the next four years. This is equivalent to $10,761 per household. The single largest commitment is Labour's pledge to reinstate the Pay Equity regime, which we cost at $10.97 billion over four years, using Treasury's own projected cost of the policy.

However, Labour has also committed to raising government spending to 33 percent of GDP. This would cost $50.5 billion, or $22,296 per household.

Government services and administration
Labour would reverse National's planned public service savings, costed at $2.8 billion over four years — the same figure National itself uses for the savings being reversed. They have also proposed lifting all public sector wages to the 'living wage', which Living Wage Aotaeroa estimate to cost $100m.

Social spending
On health, Labour's free GP visits and related policies are costed at $2 billion over four years, and additional health spending funded from the party's proposed Capital Gains Tax adds a further $1.2 billion; we have not been able to fully verify where this $1.2 billion figure originates and would treat it as provisional. Free cervical screening is costed at $82 million. Labour has also announced a job guarantee to 2,700 nursing graduates each year, at a cost of $525 million over four years.

Labour would return to locally made school lunches, costed at $427 million over four years, reversing the savings National has already banked from cutting the scheme.

On welfare, reversing the increase in income-related rent charges is costed at $542 million.

Economic development
On the economy, Labour would forego dividends to the Future Fund, costed at $2.8 billion over four years based on forecast dividend income over the period; this figure should be treated as uncertain, since it depends on Future Fund performance rather than an announced Labour costing.

Labour has promised its own tax depreciation policies for SMEs, costed at $1.6 billion, with the funds coming from replacing the current Government's Investment Boost scheme. We consider this policy to be cost neutral.

Labour would repurpose the LNG fund into SolarSaver, costed at $160 million, expand the apprenticeship boost, costed at $57 million, and fund an AI fund for SMEs, costed at $36 million. They promise to cap public transport fares, costed at $260 million. We have disputed this cost, estimating a figure close to $648 million. 

Environment & arts
Labour has not announced any costed policies for the environment, arts or heritage this election.

Core Crown Expenditure pledge
Labour plans to lift Core Crown Expenditure to 33 percent of GDP. Using Treasury's BEFU 2026 forecasts and Fiscal Strategy Model, we calculate that reaching this target would require core Crown spending to exceed current forecasts by $50.5 billion over the next four years, or $24,358 per household. This calculation assumes Labour's proposed Capital Gains Tax is fully implemented and delivering the revenue needed to sustain spending at 33 percent of GDP — an assumption that is, on current settings, some way off.

Note: the $22.3 billion total above covers only Labour's individually announced and costed policies. It is dwarfed by the party's overarching plan to lift Core Crown Expenditure to 33 percent of GDP, which alone would cost $50.5 billion over four years, or $24,358 per household.

(t) policies where we’ve taken parties’ costings at face value.
(o) uncosted policies that we have had to cost ourselves.
(d) policies where we have disputed parties’ own costings.