Labour released its fiscal plan on Sunday 4 October (1News, ODT, RNZ, Newstalk ZB, Stuff). It targets an operating surplus in 2028/29 and includes about $2.5 billion over four years for an interim $4-an-hour rise for 65,000 care and support workers. Hipkins said that is about half of the $8 an hour unions wanted. National says restoring the old pay equity regime would cost 1 billion on a Treasury estimate, leaving an $8.5 billion gap. Labour says it has 0.5 billion unallocated and is not naming a figure so as not to undermine talks.
With polls close, spending credibility is a central election argument. Pay equity involves large sums and affects thousands of mostly female workers.
If you work in aged care or disability support, the interim rise would apply to you. For everyone else the question is what is squeezed to pay for it.
Labour says every promise is fully costed and paid for, and a headline cost would weaken its hand in negotiations.
National says leaving the biggest item uncosted makes the plan unreliable and could crowd out schools, police and defence.
The $8.5b figure is one side's arithmetic, not an audit. Watch for the Treasury's pre-election update and for any independent costing of the pay equity promise.
1News, Otago Daily Times, RNZ, Newstalk ZB, Stuff (4 Oct 2026)
Politics · ElectionPress ✓ 5 outlets · costings attributed to each party
Labour sets out its fiscal plan, promising a surplus by 2028/29 as National claims an $8.5b hole
The plan includes $2.5 billion over four years for a $4-an-hour rise for 65,000 care and support workers. Labour says every promise is costed; National says restoring pay equity is not.
Labour released its fiscal plan on Sunday 4 October, five weeks before the 7 November election, according to 1News, the Otago Daily Times, RNZ, Newstalk ZB and Stuff. The plan aims for an operating surplus in 2028/29. It also includes about $2.5 billion over four years for an interim pay rise of $4 an hour for roughly 65,000 care and support workers. Chris Hipkins described that as about half of what unions have sought, and not a final deal.
National finance spokesperson Nicola Willis said the plan leaves a gap of about $8.5 billion, because it puts no figure on restoring the old pay equity regime. National puts that cost at $11 billion, citing a Treasury estimate. Labour says it does not want to undermine negotiations by naming a number, and that it has about $10.5 billion of unallocated funding. The $8.5 billion figure is National's calculation. Labour has not accepted it and has not published its own.
Open story and DailyDrop view
By the numbers
$2.5bover four years for the care worker pay rise (1News, ODT)
65,000care and support workers covered by the interim rise
$8.5bgap claimed by National; disputed by Labour
The Greens unveiled a public transport policy on 4 October (1News, ODT, interest.co.nz, RNZ). Buses and trains would be free for children, students, Community Service Card holders and Total Mobility users, with adult fares capped at $2 a journey. The Parliamentary Library costed fares at $262 million in 2027/28, rising to $381 million by 2030/31. The party also set aside up to 3.65 billion for light rail or bus rapid transit in Auckland, Wellington and Christchurch, and would add an overnight Auckland-Wellington train. Reports differ on age cut-offs and ferries are not mentioned.
Petrol prices are high and household costs are a leading election issue, so cheaper transport is a direct bid for voters.
If you ride a bus or train regularly, a $2 cap would cut costs a lot, but nothing changes unless the Greens are in government and win the policy in negotiations.
Supporters say cheap fares cut congestion and cost of living at once.
Critics say fare cuts without more services help only where buses already run, and the light rail figure is a ceiling not a plan.
Fares are the cheap part of this policy; the 3.65b is the real bill. Watch how much of it the Greens would insist on in coalition talks.
1News, Otago Daily Times, interest.co.nz, RNZ (4 Oct 2026)
Politics · TransportPress ✓ 4 outlets · costings per Parliamentary Library
Greens pledge free buses and trains for children and students, and a $2 cap on adult fares
The Green Party launched its public transport policy on Sunday, according to 1News, the Otago Daily Times, interest.co.nz and RNZ. Buses and trains would be free for children, students, Community Service Card holders and Total Mobility users, and other adults would pay no more than $2 a journey. Reports differ on the exact age cut-offs for free travel, and the policy document does not say whether ferries are covered.
The Parliamentary Library costed the fare changes at $262 million in 2027/28, rising to $381 million by 2030/31, and the Greens say their tax policy would pay for it. The party also set aside up to $13.65 billion for light rail or bus rapid transit in Auckland, Wellington and Christchurch, a ceiling it calls indicative. Co-leader Chlöe Swarbrick tied the policy to fuel costs.
Open story and DailyDrop view
Word of the day
Fiscal planPoliticsA party's costed outline of how much it would spend, tax and borrow over the next few years.