Better today. Better tomorrow. Every promise Labour has made is fully paid for.
- Every election commitment is fully costed and fully funded, independently reviewed by Hall Chadwick
- Books return to an OBEGAL surplus in 2028/29
- Net debt down towards 20% of GDP over time
- Operating allowance held at $2.4 billion per Budget, as set at Budget 2026
- $12 billion in future capital allowances; Labour's commitments use $4.1 billion, leaving almost $8 billion unallocated
- $15.5 billion of additional health funding over the forecast period
Hard work should get you somewhere. If you work hard and do your bit, you should be able to get ahead and build a good life here in New Zealand. Right now, too many people are doing everything asked of them and still going backwards.
National promised to grow the economy and get the Government's finances in order. It has done neither - unemployment is higher, growth is weaker, debt has continued to rise, and frontline services have been cut.
Labour will balance the books without shrinking the economy. That means smarter investments, backing the people and businesses doing the work, and judging every dollar by whether it makes New Zealand stronger - not short-term cuts that put more people out of work or leave a bigger bill for the future.
Four commitments
- Everything is paid for. Every election commitment fits within Budget 2027's $2.4 billion operating allowance and the $12 billion of future capital allowances.
- Make every dollar work harder. Investment is focused on what improves people's lives, strengthens the economy, or prevents bigger costs later.
- Balance the books while getting costs under control. A government can't call its fiscal policy a success if the books only look better because more people are out of work or services are run down.
- Grow the economy by backing the people doing the work. Labour will back productive investment, small businesses, skills, technology and infrastructure to grow the economy from the grassroots up.
Capital commitments
Labour's announced capital commitments fit comfortably within the $12 billion of future capital allowances, leaving almost $8 billion unallocated.
| Commitment | Capital funding |
|---|---|
| New Zealand Future Fund | $200 million |
| Student loan write-off | $420 million |
| Hospitals | $200 million |
| Schools | $400 million |
| Kainga Ora housing (over four years) | $2.9 billion |
| Ratepayer Assistance Scheme solar expenditure | $7 million |
Where the money goes
Health
Labour's plan puts $15.5 billion of additional funding into health over the forecast period, combining the health cost-pressure track from the Pre-election Economic and Fiscal Update with Labour's announced health commitments: three free GP visits a year through the Medicard, free prescriptions, free cervical screening, free maternity scans, and the Graduate Nurse Job Guarantee. Every dollar raised from Labour's targeted Capital Gains Tax is invested in health.
Public services
Labour will reverse half of the additional cuts planned for the next Budget, and fully reverse the cuts National has planned for future Budgets. Agencies will still be expected to spend carefully and deliver value for money.
Pay equity
Labour will reinstate pay equity legislation and provide an immediate $4 an hour pay increase for care and support workers. This commitment is fully funded in this Fiscal Plan - see Labour's pay equity policy for full detail.
Small business
Labour will help small businesses invest, get invoices paid faster, cut unnecessary paperwork, and give Kiwi firms a fairer shot at government contracts, through the Small Business Action Plan and Small Business First.
Land Transport Fund
Labour will freeze fuel tax for three years and cap weekly public transport fares at $20 in Auckland, Wellington and Christchurch, and $10 everywhere else. Both commitments are fully funded in this Fiscal Plan, with the fare cap funded by reprioritising 1% of the National Land Transport Fund, so investment in roads and public transport continues.
Key fiscal indicators
OBEGAL: Labour will return the Government's books to an operating surplus before gains and losses in 2028/29, using the standard OBEGAL measure rather than the OBEGALx measure introduced by the current Government.
Debt: Labour will bring net debt down towards 20% of GDP over time. Net debt gives a fuller picture of the Crown's fiscal position because it recognises both financial assets and liabilities. Borrowing for high-value capital investment can be the sensible choice when the asset will serve New Zealanders for decades.
Independent review
Hall Chadwick was commissioned by the New Zealand Labour Party to independently review this Fiscal Plan against the Budget allowances set out in the Pre-election Economic and Fiscal Update (PREFU).
The review confirmed that the estimated spending, revenue, and capital expenditure are supported by the presented and announced policy material; the estimated spending, revenue, and capital expenditure are reasonable assessments, conditional on the underpinning assumptions of each policy and commitment; and the spending and revenue commitments fall within the stated fiscal strategy.
Is every Labour election commitment funded?
Yes, every election commitment is fully costed and fully funded within its Fiscal Plan. The plan has been independently reviewed by accounting firm Hall Chadwick, which confirmed the estimated spending, revenue and capital expenditure are reasonable, conditional on the underlying assumptions, and fall within Labour's stated fiscal strategy.
When will Labour return the Budget to surplus?
Labour will return the Government's books to an OBEGAL (operating balance before gains and losses) surplus in 2028/29. Labour will use the standard OBEGAL measure rather than the OBEGALx measure introduced by the current Government.
What are Labour's operating and capital allowances?
Labour will keep the operating allowance at $2.4 billion per Budget, as set at Budget 2026. For capital, the allowances are $3.5 billion for Budget 2027, $3.5 billion for Budget 2028, and $5 billion for Budget 2029 - a total of $12 billion. Labour's announced capital commitments total around $4.1 billion, leaving almost $8 billion unallocated.
What are Labour's capital commitments?
Labour's announced capital commitments are: $200 million for the New Zealand Future Fund, $420 million for the student loan write-off, $200 million for hospitals, $400 million for schools, $2.9 billion for Kainga Ora housing (spread over four years), and $7 million for Ratepayer Assistance Scheme solar expenditure.
How much is Labour investing in health?
Labour's plan provides $15.5 billion of additional funding for health over the forecast period, combining the health cost-pressure track from the Pre-election Economic and Fiscal Update with Labour's announced health commitments. Every dollar raised from Labour's targeted capital gains tax is invested in health.
How will Labour bring down net debt?
Labour will bring net debt down towards 20% of GDP over time, using the net debt measure, which accounts for both the Crown's financial assets and its liabilities.
Who reviewed Labour's Fiscal Plan?
Hall Chadwick was commissioned by the New Zealand Labour Party to independently review the Fiscal Plan. Hall Chadwick confirmed the estimated spending, revenue and capital expenditure are supported by Labour's announced policy material, are reasonable assessments conditional on each policy's underlying assumptions, and fall within Labour's stated fiscal strategy.
New Zealand doesn't have to choose between responsible finances and a better future.
We can have both. Better today. Better tomorrow.
Sign up to receive the latest announcements directly to your inbox.
You can unsubscribe any time.
