ACT party cost breakdown

Week 5 update:

• ACT's plans to end government KiwiSaver contributions for members who receive employer contributions, in exchange for tax relief on KiwiSaver investments, would reduce government spending by $2.59 billion. That's a $1,250-per-household saving over four years.
• We have costed ACT's plan to create a one-stop-consenting-shop at nil, on the assumption that applicants' fees will cover the cost of processing their consents.
• That means ACT are the first party during this year's Bribe-O-Meter to be promising a net reduction in government spending. With National's fiscal plan due over the next few days, we hope they will be joining ACT in saving taxpayers money.

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The ACT Party's costed policies net out to a saving of $1.88 billion over the next four years. This is equivalent to a saving of $907 per household.

Social spending

ACT would end the Government Contribution to KiwiSaver for members who receive employer contributions. ACT estimates this saves $2.59 billion over four years. ACT also proposes removing tax on KiwiSaver earnings and on other superannuation income, but as this is a change to revenue rather than spending it is not included here.

$92 million is allocated to allow pharmacies to diversify the services they offer, based on the $23 million cost of a 2023 pilot scheme. As ACT's policy is broader than the pilot, the true cost is likely to be higher than this minimum estimate.

A baseline increase to Pharmac's budget is costed at $1.9 billion over four years, using the midpoint of ACT's own year-by-year projections. However, this is to be funded from existing health budgets.

Government services and administration

ACT's pledge of 100,000 hours of extra rural police patrols is costed at $25.5 million over four years, based on an annual constable salary of $86,597 and a 30 percent overhead allowance.

The three-strikes law proposal for burglary is costed at $191.8 million over four years, using ACT's own maximum estimate of 952 additional offenders caught and a $552 daily cost per prisoner. This figure does not include the cost of any new prison beds that would be required to house them.

ACT has proposed a ban on spiritual practices, including karakia and waiata, on taxpayers' time in the public service. This is estimated to save $14 million over four years, assuming 10 percent of staff at each agency are affected.

The party's changes to climate regulation are also included here. These include $65 million restoring industrial allocations to the 60 percent and 90 percent rates for trade-exposed industries, $407 million returning ETS receipts to households, and a $59 million saving from scrapping the Zero Carbon Act.

Note: These reforms were included in government services (legislative and regulatory reform), rather than as environmental and conservation policy.

ACT has also proposed consolidating the public service. We have assumed this carries no net cost to the taxpayer, on the basis that any redundancy costs would be more than offset by the resulting savings.

Rolling out 20 noise cameras to catch loud vehicles has been costed at $2 million by the party.

Economic development

ACT's one-stop consenting shop is meant to replace several separate consenting processes. ACT has not costed it, and we have assumed no net cost on the basis that the applicant pays for the consenting costs. Their transport policy will reallocate NZTA cultural spending towards core transport investment, but this is a reallocation rather than a reduction.

(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.