Cost of Living

The tax cuts were supposed to fix this. They did not fix this.

National's flagship election promise was tax relief for squeezed households. What arrived was a modest cut that barely covered a weekly shop, while the cost of everything else kept climbing. The rich got richer. Everyone else got $20 and a pamphlet about fiscal responsibility.

$20-40/wk Tax cut for most middle-income earners. Less than a single tank of petrol.

$200+/wk Tax cut for those earning over $180,000. Somehow they needed it more.

30% Increase in food bank demand since late 2023.

7.2% Grocery price inflation peak. Your $40 tax cut bought less food than before.

The Tax Cuts

On paper, National adjusted income tax thresholds for the first time in years. In practice, someone on the median income of around $60,000 got about $20-40 a week before the tax. The top bracket? Hundreds more per week. The government funded this partly by cancelling public transport projects and cutting public services. So you saved $20 but your bus got cancelled. Net benefit: debatable.

Source: NZ Treasury tax calculator, 2024 Budget documents

Food Prices

Grocery prices surged through 2023-2024. A Commerce Commission inquiry into supermarket competition had recommended structural changes, but the government's appetite for taking on Foodstuffs and Woolworths proved... modest. The duopoly remains largely intact. Your $9 block of cheese sends its regards.

Source: Stats NZ Food Price Index, Commerce Commission grocery market study

Food Banks: Record Demand

The NZ Food Network reported a roughly 30% increase in demand since the government took office. The Salvation Army's annual State of the Nation report painted a similarly grim picture. When food banks are your economic barometer, the economy is not doing well.

Source: NZ Food Network annual report, Salvation Army State of the Nation 2025

"New Zealanders will feel the difference in their back pockets." — Nicola Willis, Budget 2024. They did feel it. It felt like not quite enough.

Fuel & Transport

National reinstated fuel taxes and road user charges that had been temporarily reduced, while simultaneously cutting funding for public transport and cycling infrastructure. The message: you will drive, and you will pay for the privilege. Auckland's congestion problem was addressed primarily by hoping really hard.

Source: Ministry of Transport, NZTA funding announcements

Who Actually Benefited?

An analysis by the NZ Herald found that the top 10% of earners received a disproportionate share of the total tax relief. Combined with restored landlord deductions and a shorter bright-line test, the overall fiscal picture looked less like "helping struggling families" and more like "rewarding the people who donate to National." But that's probably a coincidence.

Source: NZ Herald analysis, Infometrics fiscal impact modelling