𝔾𝕠𝕧𝕥𝕤 𝔽𝕚𝕤𝕔𝕒𝕝 𝔽𝕒𝕚𝕝𝕦𝕣𝕖𝕤 𝕃𝕖𝕒𝕧𝕖 𝕍𝕦𝕝𝕟𝕖𝕣𝕒𝕓𝕝𝕖 𝕂𝕚𝕨𝕚𝕤 𝕊𝕥𝕣𝕦𝕘𝕘𝕝𝕚𝕟𝕘, 𝔼𝕪𝕖𝕚𝕟𝕘 𝕋𝕙𝕖 𝟚𝟘𝟚𝟞 𝔼𝕝𝕖𝕔𝕥𝕚𝕠𝕟

ℕ𝕒𝕥𝕚𝕠𝕟𝕒𝕝’𝕤 𝟚𝟘𝟚𝟜 𝕥𝕒𝕩 𝕔𝕦𝕥𝕤, 𝕝𝕒𝕟𝕕𝕝𝕠𝕣𝕕 𝕣𝕖𝕓𝕒𝕥𝕖𝕤, 𝕒𝕟𝕕 𝕥𝕠𝕓𝕒𝕔𝕔𝕠 𝕥𝕒𝕩 𝕔𝕦𝕥𝕤 𝕗𝕒𝕚𝕝𝕖𝕕 𝕧𝕦𝕝𝕟𝕖𝕣𝕒𝕓𝕝𝕖 𝕂𝕚𝕨𝕚𝕤, 𝕨𝕙𝕚𝕝𝕖 𝕥𝕙𝕖 𝟚𝟘𝟚𝟞 𝕖𝕝𝕖𝕔𝕥𝕚𝕠𝕟 𝕟𝕖𝕒𝕣𝕤..

𝗧

he National-led coalition government, elected in 2023, has faced sharp criticism for fiscal policies failing to ease New Zealand’s cost-of-living crisis, particularly for low-income households, beneficiaries, and renters. 

The 2024 tax cuts, landlord rebates, and tobacco tax reductions, intended as relief, have been criticised for favouring the wealthy, deepening inequality, and offering little support to the vulnerable.

PM Luxon reacts to report of the Landlord tax blowout. file: 𝔅𝔯𝔲𝔠𝔢 𝔄𝔩𝔭𝔦𝔫𝔢

As the 2026 election nears, public frustration is growing, with Labour’s proposed capital gains tax is gaining traction as a potential solution.

The 2024 tax cuts, including income tax threshold adjustments and the FamilyBoost childcare credit, disproportionately benefited high earners. 

Those earning over $78,100 saw significant savings, while low-income earners under $30,000 received less than $20 per fortnight—insufficient against 3-4% inflation and rising costs for essentials like groceries, utilities, and rent, particularly in Auckland and Wellington. 

Oposition leader Chris Hipkins reacts to govt tax plans; file: 𝔅𝔯𝔲𝔠𝔢 𝔄𝔩𝔭𝔦𝔫𝔢

Landlord rebates, meant to increase housing supply, have not curbed rising rents, further straining low-income households. 

Tobacco tax cuts primarily benefited higher-income smokers and the tobacco industry, offering no relief for the needy.

The coalition’s austerity measures, slashing funding for public health, housing support, and welfare, have disproportionately harmed Māori, Pasifika, and other vulnerable groups, eroding critical lifelines amid market-driven cost increases. 

The government’s 100-point economic plan, focusing on deregulation and business cost reductions, has been criticised as ineffective against global inflationary pressures, failing to deliver immediate relief.

Public sentiment has shifted, as shown in the August 1News-Verian poll.  

The poll, surveying 1000 eligible voters from August 2-6, 2025, with a 3.1% margin of error, reflects growing voter dissatisfaction with the coalition’s handling of the cost-of-living crisis, with only 31% trusting National to manage it, per the Ipsos NZ Issues Monitor. 

Labour’s proposed capital gains tax is gaining support as a means to fund robust social services, reduce inequality, and drive equitable growth. 

These policies resonate with struggling Kiwis seeking stability, contrasting with National’s policies, which are seen as prioritising optics over substance. 

The coalition’s 2024 fiscal missteps—tax cuts, landlord rebates, and tobacco tax reductions—have left low-income earners trapped in hardship, with no meaningful relief from rising costs.

As the 2026 election approaches, the August 1News-Verian poll highlights a tightening race, with Labour’s redistributive policies positioning it as a viable alternative to address the needs of New Zealand’s most vulnerable, setting the stage for a contentious electoral battle.

As the 2026 election approaches, New Zealand voters, frustrated by the National-led coalition’s failure to ease the cost-of-living crisis, are increasingly hopeful for change.

𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀: 𝔅𝔯𝔲𝔠𝔢 𝔄𝔩𝔭𝔦𝔫𝔢

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