Labour claims that all of its election promises are fully paid for as it reveals a fiscal plan that leans on scrapping National's Investment Boost and a previously-announed capital gains tax to help fund $24 billion of new spending.
The plan, released ahead of the November election, keeps the $2.4 billion operating allowance set at Budget 2026. It forecasts a return to surplus in 2028/29, the same year as Treasury's pre-election forecasts under the National-led coalition.
Labour said all of its commitments are "fully costed and fully funded".
Repealing Investment Boost, the Government's tax incentive for business investment, is the plan's biggest money-raiser.
It was expected to bring in an estimated $7.7 billion over four years.
Labour's capital gains tax on commercial and residential investment property would raise $2.8 billion over the same period, with every dollar earmarked for health.
The tax would only apply to gains made after July 1, 2027. The family home, farms, KiwiSaver, shares and business assets would be exempt.
Labour would also reverse the Government's tobacco tax cut, raising $365 million.
Health takes the largest share of new spending, with $15.5 billion in additional funding over the forecast period. That includes meeting rising cost pressures, three free GP visits a year through a new Medicard, and bringing back the free prescriptions scheme.
Other big-ticket items include reversing half of the Government's public service savings planned for the next Budget and all of the following round, at a cost of almost $2 billion.
The plan also commits $2.9 billion in capital funding for Kāinga Ora housing over four years. Labour says its capital commitments fit "comfortably" within the $12 billion of future capital allowances.
Labour's plan includes about $2.5 billion for an immediate $4 an hour pay rise for 65,000 care and support workers.
It leaves future pay equity settlements to future Budgets, saying it "would undermine the process" to announce in advance what had been set aside.
Pay equity settlements left out
The plan does not set aside money for future pay equity settlements, despite Labour's pledge to reinstate the pay equity legislation the Government changed last year.
Labour is continuing to argue in its plan that naming a figure would weaken negotiations.
"It would undermine the process to announce in advance how much had been set aside for individual claims."
Pay equity was the largest single item in National's "hidden bill" claims against Labour. It put the cost of reinstating the former regime at almost $11 billion.
That document, which came out before Labour's plan, claimed an $18.2 billion gap between Labour's spending intentions and its capital gains tax revenue.
Labour also plans to freeze fuel tax for three years and cap weekly public transport fares at $20 in Auckland, Wellington and Christchurch and $10 elsewhere.
The fare cap would be funded by reprioritising 1% of the National Land Transport Fund. The plan's costings table does not list a separate figure for the fuel tax freeze.
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