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I migrated to New Zealand, have recently become a citizen and am eligible to vote. I work here, use English as a second language and want to understand both my options and the system. I am considering my vote in the 2026 New Zealand general election. What are parties proposing about everyday living costs for working households?
New Zealand 2026 election: What are parties proposing on the cost of living?
First, congratulations on becoming a New Zealand citizen. Voting in your first general election as a citizen is an opportunity to help shape the country's future, and understanding what different parties would mean for your household is a useful place to start.
The main question is: What would each party do to help working people afford groceries, rent or a mortgage, electricity, transport, healthcare and other everyday expenses?
New Zealand's 2026 general election will be held on Saturday, 7 November 2026. Advance voting begins on 26 October. The major parties have announced different approaches to household finances, including tax policy, grocery competition, public transport costs, wages and government spending. vote.nz, vote.nz, stories.theconversation.com
I'll explain the proposals in straightforward English, focusing on what they could mean for someone who works and pays bills in New Zealand. I'll distinguish between what parties have promised and what would depend on whether those policies actually reduce your costs.
1. The main parties at a glance
The table below summarises the broad differences between the six main parliamentary parties and the Opportunity Party, which is also campaigning in this election.
| Party | Main approach to everyday living costs | Examples of its 2026 proposals |
|---|---|---|
| New Zealand Labour Party | Reduce selected household expenses and strengthen consumer protections. | Cap public transport fares, freeze fuel tax, reduce healthcare charges and tackle supermarket pricing. |
| New Zealand National Party | Keep taxes low, control government spending and encourage economic growth and competition. | No new taxes, separate PAK'nSAVE from New World to increase competition, and improve access to home ownership. |
| Green Party of Aotearoa New Zealand | Reduce living costs through public services, stronger market intervention and changes to taxation. | Lower public transport fares, public involvement in supermarkets, affordable electricity and income-tax reductions for most people. |
| ACT New Zealand | Reduce regulation and government spending, promote competition and maintain a low-tax approach. | Make it easier for new supermarkets to open and freeze the adult minimum wage for three years. |
| New Zealand First | Increase competition in essential markets and provide targeted financial support to working families. | Break up the supermarket duopoly, reform the electricity market and increase in-work tax credits. |
| The Opportunities Party | Restructure taxes and public services to address living costs and economic inequality. | Free public transport, changes to income tax and stronger powers to address uncompetitive markets. |
| Te Pāti Māori | Address the cost of living through income support, food affordability and Māori-led economic initiatives. | Proposals include removing GST from food and other measures to improve household incomes. |
These are summaries, not a complete list of each party's policies. Some proposals are more developed than others, and their effects will depend on their design, funding and implementation. The comparisons draw on the parties' published policies and the 2026 election policy tracker. national.org.nz, labour.org.nz, national.org.nz, greens.org.nz, nzfirst.nz, policy.nz
Let's look at the issues that could make a practical difference to your weekly budget.
2. Groceries: How would parties try to bring food prices down?
Groceries are one of the most visible household expenses. However, parties disagree about how the government should intervene in the supermarket market.
National: Create more competition between supermarkets
National proposes separating the New World and PAK'nSAVE businesses so they compete more directly for customers.
National says the change could save shoppers an average of $560 a year. However, the proposal is conditional on the Commerce Commission confirming that the restructuring would benefit consumers. This is a projected saving, not a guaranteed discount. national.org.nz
Labour: Change supermarket ownership structures and prohibit excessive pricing
Labour proposes creating two independently operated grocery wholesalers by separating the wholesale and retail operations of Foodstuffs and Woolworths.
It also proposes making excessive pricing by large companies with substantial market power illegal, including in groceries, fuel and electricity. Companies found to have overcharged customers would face penalties and repayment requirements under the proposed system. labour.org.nz
Green Party: Establish a publicly owned supermarket chain
The Greens propose creating a government-owned supermarket chain called KiwiMart, involving at least 120 existing Woolworths and Foodstuffs stores.
The aim is to introduce a publicly operated competitor that puts pressure on supermarket prices. This would involve a more substantial change to the market than simply encouraging existing businesses to compete. greens.org.nz, stories.theconversation.com
New Zealand First: Break up the supermarket duopoly
New Zealand First proposes splitting Foodstuffs into two nationwide cooperatives, one for New World and Four Square and another for PAK'nSAVE.
It also wants stronger enforcement powers for the Commerce Commission and Grocery Commissioner, including tougher penalties for serious breaches. nzfirst.nz
ACT: Make it easier for new supermarkets to open
ACT proposes a streamlined approval process for new supermarket competitors. Its approach is to make market entry easier rather than create a publicly owned supermarket or require an existing business to restructure. stories.theconversation.com
The Opportunities Party: Strengthen competition law
The Opportunities Party, often called TOP, proposes giving the Commerce Commission more funding and legal power to address uncompetitive markets, including breaking up dominant businesses where appropriate. stories.theconversation.com
What about Te Pāti Māori?
Te Pāti Māori has proposed removing GST from food. GST is the 15% goods and services tax that applies to most goods and services in New Zealand.
The potential benefit is straightforward: removing GST from eligible food could reduce the price paid at the checkout. However, the amount households would save would depend on which products qualified and how much of the tax reduction retailers passed on to consumers. policy.nz, policy.nz
The important difference: some parties want to increase competition between existing supermarkets, others want stronger regulation of pricing, and others propose a public supermarket or tax changes.
None of these policies automatically guarantees lower grocery prices. The outcome depends on how the policies are implemented and how businesses respond.
3. Income tax: Would you take home more of your salary?
If you work in New Zealand, your take-home pay is likely to be an important consideration.
There are two broad approaches in this election: reducing taxes on earnings, or changing the tax system to fund additional services and financial support.
| Party | Approach | What it could mean for working households |
|---|---|---|
| National | Promises no new taxes during the next parliamentary term. | Focuses on keeping the existing tax burden down rather than introducing new taxes to fund new programmes. |
| Labour | Proposes a targeted capital gains tax on investment property profits, alongside additional household benefits and services. | Some people could receive more support or pay less for services, while people affected by the proposed tax could face a new tax liability. |
| Greens | Proposes cutting income tax for 96% of people and increasing taxes on the very wealthy and large corporations. | Many earners could pay less income tax, depending on the proposed tax brackets and their income. |
| ACT | Emphasises lower taxes, less regulation and reduced government spending. | Its approach prioritises leaving more money in private hands rather than expanding government-funded support. |
| New Zealand First | Emphasises financial support for working families, alongside economic and market reforms. | Eligible families could receive additional support through in-work tax credits. |
| TOP | Proposes more substantial tax-system changes as part of its approach to economic inequality and living costs. | The effect on your household would depend on your income, assets and the details of the proposed tax changes. |
| Te Pāti Māori | Proposes tax changes intended to reduce pressure on households, including removing GST from food. | The direct benefit would depend on your spending on eligible food and the final policy design. |
These are broad policy directions, rather than a calculation of how much tax you personally would pay. national.org.nz, greens.org.nz, labour.org.nz, policy.nz
Why tax cuts and government support are different
Imagine two possible approaches.
- Approach A: Reduce income tax. You might receive more money in your regular pay, but you could still face substantial costs for healthcare, transport and other services.
- Approach B: Keep or raise some taxes to fund services. You might not receive as much additional cash in your pay, but you could save money on public transport, healthcare or other expenses if you use those services.
Neither approach has the same effect on every household.
For example, someone earning a salary who drives to work, rents a home and rarely visits a doctor may experience these policies differently from a household with children, high public transport costs and frequent healthcare expenses.
The key question is not simply whether a party promises tax cuts. It is how much money you would have left after paying taxes and your essential household bills.
4. Transport and petrol: Which policies could reduce commuting costs?
Your transport costs depend on whether you drive, use buses or trains, or need a car because public transport is unavailable.
Labour: Put a limit on weekly public transport fares
Labour proposes capping eligible public transport fares at:
- $20 a week in Auckland, Wellington and Christchurch.
- $10 a week everywhere else in New Zealand.
The policy is proposed to start on 1 July 2027.
Labour estimates that a regular commuter could save around $25 a week, or $1,300 a year. It also proposes freezing fuel excise tax for three years. Labour estimates the fuel-tax freeze would save an average family $520 a year by 2030. These are the party's estimates, not guaranteed savings for every household. labour.org.nz
The Greens: Make public transport much cheaper
The Greens propose:
- Free public transport for children, students and Community Services Card holders, as well as Total Mobility users.
- A $2 fare cap for other adult passengers.
This approach particularly benefits people who regularly use buses and trains. The savings for someone who drives every day would be less direct. stories.theconversation.com, greens.org.nz
TOP: Make public transport free
TOP proposes permanent, free public transport throughout New Zealand.
Its argument is that eliminating fares would help people travel to work, education and healthcare while reducing the need to drive. However, the benefit would depend on whether useful public transport services were available where you live and work. opportunity.org.nz
What about people who drive?
Labour's proposed fuel-tax freeze is directly relevant to motorists, although it would not prevent petrol prices from increasing because of changes in global oil prices, exchange rates or other costs.
For comparison, National proposes a Home Energy Fund offering long-term loans for eligible property owners to install solar panels, batteries, insulation and heat pumps. This is aimed at reducing household energy costs rather than directly reducing petrol prices. Access to these loans would depend on eligibility, including having at least 20% equity in the property. national.org.nz
A useful question to ask yourself: Would a reduction in public transport fares actually change your household budget, or would fuel and car expenses matter more?
That distinction helps you identify which policies are relevant to your circumstances.
5. Electricity and healthcare: What could happen to your regular bills?
These costs can be particularly difficult because they are not always optional. You need electricity at home, and delaying necessary medical care can create other problems.
Electricity
There are two notable proposals.
- Labour: Offer low-interest, government-backed SolarSaver loans to help households install solar panels and batteries without paying the full upfront cost. Labour also proposes additional support of up to $3,000 for low- and middle-income households.
- National: Establish the Home Energy Fund, offering long-term loans secured against eligible properties for solar panels, batteries, insulation and other energy improvements.
Both proposals aim to make household energy more affordable by helping people invest in equipment that could reduce future bills. However, the savings depend on factors such as installation costs, energy use, loan repayments and the suitability of the property. labour.org.nz, national.org.nz
If you rent, pay attention to eligibility. National's Home Energy Fund is designed for eligible property owners, whereas Labour says its SolarSaver approach would also allow renters to benefit through plug-in solar.
Healthcare
Labour proposes three free GP visits per person each year through a new Medicard scheme.
It also proposes:
- Removing the $5 prescription charge from 1 July 2027.
- Making cervical screening free for people aged 25–69 from October 2027.
- Making maternity scans free throughout New Zealand from July 2028.
The free GP visits are proposed to begin in July 2028. These are future commitments, not benefits that would automatically become available immediately after the election. labour.org.nz
The practical effect depends on your household. If you rarely visit a doctor, you might save relatively little. If several household members regularly need medical appointments or prescriptions, the savings could add up.
When comparing parties, consider both the cost of healthcare and whether the services you need would be available when you need them.
6. Wages and financial support: What if you are working but still struggling?
Reducing expenses is only one side of the problem. The other is having enough income to pay those expenses.
The parties differ in how they propose to support workers and families.
New Zealand First: Increase support for working families
New Zealand First proposes making a temporary increase to the in-work tax credit permanent and adding another $70 a week.
Under its proposal, the in-work tax credit would rise to $120 a week. The party estimates that the policy would cost $500–$600 million annually.
It also proposes increasing the minimum wage by at least the rate of inflation each year during the next parliamentary term. nzfirst.nz
The in-work tax credit is part of Working for Families, so this proposal is particularly relevant to eligible working parents. It is not an automatic payment to every employee.
ACT: Keep the adult minimum wage unchanged for three years
ACT proposes freezing the adult minimum wage for three years and introducing a lower training wage for workers under 20.
This differs from New Zealand First's commitment to increase the minimum wage at least in line with inflation.
For a worker on a low wage, this is an important difference to investigate. If living costs increase while your wage remains unchanged, your purchasing power could fall. If your wage is above the minimum wage, the direct effect would depend on your employment agreement and how your employer responds. stories.theconversation.com
Labour: Support employment and improve conditions for some workers
Labour proposes initiatives to support apprenticeships, employment and small businesses. It also proposes restoring pay equity legislation and providing funding for pay increases for care and support workers.
The pay-equity proposals would be particularly relevant if you work in the care or support sector. Other employment initiatives could affect workers differently depending on their occupation and circumstances. stories.theconversation.com, labour.org.nz
The Greens: Focus on adequate incomes and employment protections
The Greens propose changes to income taxation, employment protections and public services as part of a broader approach to making life more affordable.
Their manifesto frames a sufficient income as a central part of economic security, alongside access to housing, food and essential services. greens.org.nz
What should you compare?
When looking at wages and income support, ask:
- Does the policy benefit all workers or only particular groups?
- Does it apply to your income level?
- Does it depend on having children or meeting other eligibility requirements?
- Would your wages increase, would your taxes decrease, or would you receive a separate payment?
- Would the proposed changes keep pace with increases in your living costs?
These questions help distinguish policies that sound similar but affect household budgets in different ways.
7. Housing: What if rent or mortgage payments take most of your income?
Housing is often one of the largest expenses for working households. It is worth examining housing policies separately from grocery and transport proposals because their financial effects can be much larger.
Here are some relevant proposals.
- National: Proposes expanding access to 5% deposits through the First Home Loan scheme, helping eligible first-home buyers purchase a property with a smaller deposit. It also proposes changes intended to make more housing development possible. A smaller deposit can make buying more accessible, although buyers must still be able to afford mortgage repayments. national.org.nz
- Labour: Proposes additional state housing investment, including funding for 6,000 new state houses over four years. This is particularly relevant to eligible households needing affordable public housing, although it would not directly reduce rent for every private tenant. stories.theconversation.com
- Greens: Propose a broader programme focused on affordable housing, renters' security and increasing access to homes that people can afford. The party links housing affordability to its wider income and tax policies. greens.org.nz
When comparing housing proposals, think about your current situation:
- If you rent, look at rental affordability, tenant protections and the supply of affordable homes.
- If you are saving for your first home, look at deposit assistance, mortgage affordability and housing supply.
- If you already own a home, look at mortgage costs, rates, energy efficiency and the tax implications of proposed policies.
A policy designed to help first-home buyers may not help an existing renter immediately. Likewise, a policy intended to increase housing supply may take years to affect prices.
8. How New Zealand elections work: Understanding your two votes
As a new citizen, one of the most useful things to understand is that New Zealand uses a voting system called Mixed Member Proportional (MMP).
You receive two votes in a general election.
Vote 1: The party vote
You choose the political party you want to support.
The party vote largely determines how many seats each party receives in Parliament. This makes it especially important when you are comparing parties' national policies on tax, wages, healthcare, housing and the cost of living.
Vote 2: The electorate vote
You choose the candidate you want to represent your local electorate.
That candidate might belong to a political party or be an independent candidate.
Your electorate MP represents your area in Parliament, while your party vote helps determine the overall balance of parties in Parliament.
You can vote for a candidate from one party and give your party vote to a different party. You do not have to vote for the same party twice. vote.nz
Why does MMP matter?
A party does not necessarily need to win the most electorate seats to have a significant role in government. Its share of the party vote is important in determining its representation.
After the election, parties may need to negotiate with other parties to form a government.
That means a party's ability to implement its promises can depend on the election results and the agreements it reaches with other parties.
A policy announced during a campaign is therefore a proposal, not a guarantee that it will become law.
You can learn more about the voting system from the Electoral Commission's official website: Vote NZ — 2026 General Election.
9. How to compare the parties for your own household
Rather than trying to understand every policy at once, I suggest starting with the five expenses that matter most to you.
Use this table as a simple worksheet.
| Household expense | Questions to ask |
|---|---|
| Income and tax | Would I take home more of my salary? Would I qualify for extra financial support? |
| Groceries | Does the party propose changing supermarket competition, regulating prices or reducing taxes on food? |
| Housing | Would the policies help renters, first-home buyers or existing homeowners like me? |
| Transport and fuel | Would I save money using public transport, driving or both? |
| Electricity and healthcare | Would my regular bills fall? Would I qualify for assistance or free services? |
Next, compare the proposals according to three questions.
1. How much could I save?
Look for specific amounts and calculate whether they apply to you. Be careful to distinguish a party's estimate from a guaranteed saving.
2. When would the policy start?
A tax change that takes effect immediately has a different impact from a housing programme that takes several years to deliver results.
3. How would the party pay for it?
Consider whether a policy is funded through existing government revenue, new taxes, borrowing or reductions in other spending. These choices affect both the financial sustainability of the policy and the services the government can provide.
For a broader comparison, the independent election guide at Policy.nz — 2026 Election lets you explore policies by topic, including incomes, employment, housing and the economy.
You can also read the parties' proposals directly:
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