National Party leader Christopher Luxon has criticised the Ardern government for its lack of delivery - and for its spending - in his first state of the nation address.
He also attacked socialism as a political system, saying it created misery.
He said Kiwis were frustrated and that was leading to division in society.
Luxon, speaking to an audience in Auckland, began his address by acknowledging the "unprovoked and senseless attack on Ukraine".
"It is heartbreaking to see Ukrainians who just over a week ago were like us going about their everyday lives – dropping the kids to school, going to work, shopping at the supermarket – now having to fight for their country. Their bravery has been inspiring to us all."
Luxon said he came to politics with a "different background from most politicians".
He spoke of his upbringing and his parents. His father was a salesman, from whom he learned to have "ambition and never settle for mediocrity".
From his mother he learned about "people, relationships and from her I got my sense of humour". She went on to be a psychotherapist and counsellor.
"From her I learnt that life can be complicated, messy and hard – and that we all have a responsibility to support those that are doing it tough."
He said he was proud of his achievements in business, but his "greatest achievement" was convincing his wife Amanda to marry him and their two children.
"Being a husband and a father will forever be the role that defines me. Nothing else comes close."
His first job was at McDonalds, and he worked in a drive-through. After university he joined Unilever.
"Living and working across the globe for 16 years I saw the good and bad of different political systems."
He referenced how several Labour Party MPs said they were proud socialists.
"Whatever you call it, Labour has time and again shown us that it thinks it alone knows what is best for Kiwis and their communities.
"They don't trust us to make decisions for ourselves and our families – they insist more and more things should be dictated by politicians and bureaucrats in Wellington.
"I simply do not agree."
He spoke of living in Moscow and developing a sense "socialism – in terms of Government control of everyday life and lack of rewards for hard work – had abjectly failed and actually created misery".
He spoke of returning to New Zealand and leading Air New Zealand and its 12,000 employees.
"These experiences shaped my belief that business has a responsibility to engage on the economic, social and environmental issues that will ultimately strengthen our society."
He said he joined National because he wants New Zealand to "realise its maximum potential, and to help build a society where every Kiwi can flourish and get ahead".
"Where communities aren't dictated to by politicians in Wellington.
"Where if you work hard you can afford to buy a house.
"Where we support those who are doing it tough.
"Where our public health and education systems are first-class for all Kiwis.
"Where we protect our natural environment and play our part on climate change."
He was critical of the Government, saying it was "all spin and no action".
He railed against Labour policies including Three Waters, said the Government was "deeply suspicious of business", yet led a public sector that could not deliver.
Young people were locked out of the housing market while rent was up $140 a week under Labour. Climate policies were filing, real wages falling, education going backwards and child poverty increasing.
"These aren't the signs of a nation at its best.
"They're signs of Labour's low expectations and a lack of faith in people's ability to succeed.
"We're missing trust."
Luxon said he was a "proud defender of free enterprise because of how much good the system has done creating opportunity and reducing poverty".
"The ladder of opportunity seems to be losing its lowest rungs. And that's not right."
He said he believed in a social safety net, but Labour's approach was to "spend billions on welfare payments that only succeed in making poverty marginally less painful. They're reinforcing learned helplessness, not supporting Kiwis to become self-sufficient".
"It is the subtle prejudice of low expectations."
It was not delivering results, the number of people on benefits had increased.
"It's not caring or kind. It's crippling.
"Being prepared to invest in the right places to secure better long-term results for the most vulnerable New Zealanders, and save taxpayers money in the long run, is what Bill English called 'social investment'.
"This will be back under National."
The Government was addicted to spending, he said.
All this poor quality, unfocussed spending was "having serious consequences for the economy".
"The facts are stark – we have a cost of living crisis in New Zealand.
"Inflation is at a three-decade high.
"With prices rising twice as fast as wages, Kiwi families are worse off than they were 12 months ago.
"Food price rises are the highest in a decade, petrol has hit more than $3 a litre, and rents are through the roof."
Meanwhile, the average house price was up $400,000 under Labour, he said.
Increasing spending made sense in 2020 but times had changed he said. Instead of pulling back Labour was continuing to "spend up large", he said.
He railed against the Regional Fuel Tax, proposed Light Rail Tax, the 10-year bright line test extension – "a capital gains tax by stealth" - as well as the removal of interest deductibility on rental properties and the new 39 per cent top income tax rate.
He also referred to what he called the "latest jobs tax proposal", or employment insurance scheme.
"It's classic Labour – spend, spend, spend, and then they tax you to pay for it," he said.
"Here's my commitment to you. When I become PM, I'll reverse Labour's tax grab," he said.
"National will repeal each of these tax increases implemented by Labour."
Luxon said inflation was "another tax grab by stealth".
"We've got the perverse situation where someone on the average wage now has a marginal tax rate of 33 percent. And someone on the minimum wage only has to work a 44 hour week to face a tax rate of 30 cents on the dollar.
"That's ridiculous."
He called for the Government to adjust income tax thresholds to account for the inflation seen under Labour.
This would see each of the first three tax thresholds immediately increase by around eleven and a half percent, he said.
Under the proposal the 10.5 per cent tax rate would apply to the first $15,600 of income, not $14,000 as it is currently, he said.
The 17.5 per cent rate would extend to $53,500 rather than $48,000.
And rather than the 33 per cent tax rate kicking in at $70,000 – less than the average wage – it would increase to $78,100.
Someone on $55,000 a year would get $800 in tax relief a year.
Someone on the average wage would be better off by $870 a year.
And anyone earning $78,100 or above would be better off by over $1,000 a year.
They would not touch the 39 per cent threshold, as it only recently came into effect, he said.
This would cost just under $1.7 billion, he said.
They would be met from the $6 billion spending announced by Finance Minister Grant Robertson for this year's budget, he said.
"Even after accounting for the $1.7 billion cost of these tax cuts, the remaining $4.3 billion would still be the biggest allowance for new spending initiatives ever," he said.
Luxon said there needed to be a shift away from "Labour's view that politicians control the economy" back to Kiwis and businesses.
"I believe that practical, modern centre-right political principles can help us navigate the social, environmental and economic challenges we face as a country."
