ACT leader David Seymour says the government pays more than $1 million an hour in interest on its debt. The party has released a fully costed plan to cut net core Crown debt by an extra $12.4 billion by June 2031 compared with Treasury forecasts.
Current Fiscal Track
Treasury's Pre-election Economic and Fiscal Update 2026 shows net core Crown debt reaching $229.8 billion, or 39.5% of GDP, in the year ending June 2031. The operating balance before gains and losses excluding ACC stands at a $6.8 billion deficit in 2026/27 before moving to an $11.7 billion surplus by 2030/31.
Debt peaks at $232.8 billion in 2029/30 under the central forecast. Finance costs rise from $9.1 billion in 2025/26 to $13.7 billion in 2030/31.
ACT Proposals
The ACT plan, titled 'Cut the Waste, Grow the Country' and released on 11 October 2026, returns non-protected spending to 2017 per-capita levels adjusted for inflation and population growth. It reduces the annual operating allowance by $400 million to $2 billion.
Key measures include gradually lifting the superannuation eligibility age by three months each year to reach 67 by 2035, saving $1.9 billion annually by 2031. The plan suspends contributions to the NZ Super Fund and tightens disability benefit eligibility, cutting $653 million over four years.
Foreign aid returns to 2017 levels, saving about $283 million per year while protecting Pacific and Ukraine support. No broad income tax cuts are proposed.
Earlier Surplus Path
ACT forecasts an OBEGALx surplus of $79 million in 2027/28, one year ahead of the Treasury path. By 2030/31 the plan projects an OBEGALx surplus of $16.4 billion and an OBEGAL surplus of $13.6 billion.
These outcomes rest on structural spending restraint outside ring-fenced frontline services. The approach reduces future interest burdens on New Zealand taxpayers.
Opposition Reactions
Labour finance spokesperson Barbara Edmonds called the plan a 'punching down' approach.
Overall, its just cut, cut, cut.
Green Party co-leader Chlöe Swarbrick described the KiwiSaver tax changes as 'welfare for the wealthiest'.
Taxpayer Impact
Lower debt accumulation eases pressure on future budgets. Reduced finance costs free resources for priority areas while limiting the burden passed to younger New Zealanders. The plan creates headroom for economic shocks without raising broad taxes.
