Economy · Party position

ACT on Economy

Lower taxes, less red tape, and smaller government to grow economy

ACT wants to keep taxes low and cut government spending it sees as wasteful. They say they have already saved taxpayers money and cut rules that made it harder for businesses to hire people. Going forward, they want a simpler two-rate income tax system, remove more regulations, and make it easier for businesses to invest, create jobs, and raise wages.

What they say they'll do

Introduce a two-rate income tax system with a top rate of 28%
Align personal, trust, and company tax rates to simplify the system
Continue identifying and cutting low-value government spending
Remove unnecessary regulations to make it easier for businesses to invest and hire
Streamline consenting processes and open markets to more competition
Maintain 90-day trial periods for all employers

Who this affects

Employees and wage earners

ACT's proposed flatter income tax system would change the rates people pay on their earnings, with a stated top rate of 28%.

Small business owners

Removing employment regulations like Fair Pay Agreements and keeping 90-day trials means businesses face fewer rules when hiring or setting pay and conditions.

Taxpayers generally

ACT says cutting government spending reduces pressure on public budgets and keeps more money with the people who earned it.

People starting or growing a business

Proposals to streamline consenting and remove regulations are aimed at making it less costly and complicated to invest or trade.

In their own words

“ACT has proposed a two-rate income tax system with a top rate of 28 percent, aligning personal, trust, and company tax rates.”

“The cost of living crisis is half about high prices, and half about having a low wage economy.”

“You shouldn't be punished for that with ever-increasing taxes or swaths of red tape.”

Verify at ACT — official policy page

Summarised neutrally from ACT’s own official policy (as at 2026-06-22) and checked by an editor. Nothing is paraphrased without the source linked. Read the original ↗ Arapono is non-partisan. Compare all parties on Economy →

In depth — from ACT’s policy document · 28 June 2026

A consolidated bureaucracy: 43 departments into 19

ACT would merge New Zealand’s 43 government departments into 19 and its 78 ministerial portfolios into 18, so that each department answers to a single minister. Ministers would appoint their own chief executives on fixed renewable terms and be able to remove them for non-performance or policy misalignment, and the Public Service Commission’s functions would move into the Department of the Prime Minister and Cabinet. The document maps every current department and portfolio to where it would land.

Departments

43 → 19

Portfolios

Also contesting, without seats in Parliament
Women’s Rights
Animal Justice
ALCP
Conservative
Outdoors & Freedom
Vision NZ
Alliance
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ACT on Economy

What they say they'll do

Who this affects

In their own words

A consolidated bureaucracy: 43 departments into 19

Coverage at a glance