Labour Party cost breakdown

• Labour plans to add $10.43 billion in spending this week, or $5,034 per household.
• Most of that is two items. The party costs their 'jobs, homes, and infrastructure' package at $4.3 billion. We have costed their plans to progressively raise foreign aid to 0.7 percent of Gross National Income at $5.5 billion.
• Wiping 10 percent off some student loans is costed at $583 million, expanding ACC coverage for firefighters is costed at $26.7 million, and an independent FENZ review has been costed at $3.9 million. Their rainbow healthcare strategy is costed at $5.4 million.

The Labour Party has announced $33.2 billion in new spending over the next four years. This is equivalent to $16,041 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 $24,358 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 Aotearoa estimate to cost $100m. Labour has promised to establish an Office of AI to coordinate AI policy across government, as well as an AI online safety regulator within the Department for Internal Affairs. Together, we have costed these two policies at $29 million. 

Labour has also committed to progressively lifting foreign aid towards 0.7 percent of Gross National Income 'as fiscal conditions allow.' Assuming that this progressive lifting takes the whole 4-year forecast period to reach 0.7 percent, we cost this policy as $5.5 billion, or $2,662 per household. We would welcome Labour sharing their plans for this in more detail.

We have also costed Labour's independent review of Fire and Emergency New Zealand at $3.9 million, based on the cost of the 2025 early childhood education funding review.

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 has opposed the savings National has already banked from cutting the school lunch scheme. We have assumed returning to locally made school lunches based on their repeated statements, costed at $427 million over four years.

On welfare, reversing the increase in income-related rent charges is costed at $542 million. Labour would extend KiwiSaver contributions to parents on paid parental leave, and also increase the employer contribution rate to 6 percent by 2032. Both policies together would cost a total of $392 million over the next four years.  

Labour have also committed to implementing Kieran McAnulty's members' bill, extending ACC coverage to volunteer firefighters and extending ACC mental health coverage to all firefighters. We have estimated this cost at $26.7 million. We have also costed Labour's Rainbow Health strategy at $5.4 million.

The party have also costed their plans to wipe out 10 percent of some student loans at $583 million, and we have taken them at their word.

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. 

We have estimated Labour's plans to empower the Commerce Commission to ban price gouging and regulate grocery prices at $80 million and $9 million, respectively.

Labour's 'jobs, homes and infrastructure package' plans to build 6,000 new state homes, plus school and hospital improvements. We've taken Labour's $4.3 billion, or $2,073 per household, costings at their word.

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 $33.2 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.

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