Small Targets Leave Big Vacuums in NZ Election

Labour and National's 'small-target' electoral strategies have taken a hit as both parties announced their fiscal policies, but their rivals are not letting up. The two main parties are trying to keep their targets small in an attempt to avoid attacks from their opponents.

Labour's fiscal strategy is similar to National's, with the party promising to return to surplus by 2029/30 and keeping net debt below 20% of GDP in the long term. However, Labour has increased its allowance for tax revenue and public spending, setting it at 33% of GDP once its capital gains tax is fully implemented.

While National wants to keep core Crown expenditure and revenue to no more than 30% of GDP, Labour's plan would allow for about 10% higher spending and revenue. However, the party has made it clear that it will make no more than two major tax changes: the capital gains tax and potentially removing interest deductibility for residential landlords.

Despite their small targets, both parties have been attacked by each other. National accused Labour of planning to 'spend more, borrow more, and tax more', while Labour's campaign chair Kieran McAnulty said that if National is ruling out revenue, it will have to cut spending, which could mean cuts to nurses, hospital services, or frontline workers.

The minor parties are seizing the opportunity to present their own visions for New Zealand's economy. The Act Party has proposed a more austere approach to public spending, while the Green Party is pushing for a wealth tax to increase state revenue.