National's foreign buyers tax will not go ahead, NZ First has secured a $1.2 billion regional infrastructure fund, and the new government will support a Treaty Principles bill to Select Committee.
ACT's policy for a Minister for Regulation will be accompanied by the disestablishment of the current Productivity Commission. Firearms laws will also be reformed.
The centre-right National Party won the largest share of votes in the October 14 general election but needs the support of both right-wing Act and populist NZ First parties to form a majority government.
After weeks of negotiations, the parties today unveiled the details of their coalition agreements this morning, with National making separate deals with each partner.
Major points
• National's tax cuts will continue, but the parties do not promise any further tax cuts beyond 2024, and via the agreement with NZ First it will no longer be funded through a tax on foreign buyers - instead the money will be found through reprioritisation and other revenue gathering.
• The parties confirm no ongoing commitment to income tax changes, including threshold adjustments, beyond those to be delivered in 2024, and recognise that details of the Fiscal Plan may be subject to amendment in response to significant new information or events
• Public sector agencies will each have expenditure reduction targets "informed by the increase in back office head count at that agency since 2017"
• The parties will introduce a Treaty Principles Bill based on existing ACT policy and support it to a Select Committee as soon as practicable
• A Regional Infrastructure Fund, proposed by New Zealand First, that will have $1.2 billion in capital funding
• A new agency accountable to the Minister for Regulation will assess the quality of new and existing regulation. This agency proposed by ACT will be funded by disestablishing the Productivity Commission
• ACT's policy to speed up the restoration of interest deductibility has been adopted, along with the parties tenancy law proposals like a "pet bond"
• In addition to National's gangs and youth crime policies, the parties have agreed with ACT to re-write the Arms Act, and agreed with NZ First to train no fewer than 500 new police
• Firearms law will be reviewed and reformed
• National's commitment to requiring an hour each day of reading, writing and maths will be adopted, along with ACT's policy to reintroduce partnership (charter) schools and allowing state schools to become one
• National's commitments to the "taxpayers' receipt", removing two farming regulations for every new one introduced have been abandoned. The commitment to a new medical school will be subject to a full cost-benefit analysis
• The flexibility of the Medium Density Residential Standards will be accompanied by ACT's plan to share a portion of GST from new builds with councils
• National's fiscal plan, tax plan, 100-day plan and 100-point economic plan will go ahead, with exceptions as specified in the agreements
• The current review of the Emissions Trading Scheme will be stopped "to restore confidence and certainty to the carbon trading market"
• NZ First secured a Select Committee inquiry into banking competition, focused on competitiveness, customer services, and profitability
• NZ First got agreement to explore options to strengthen the Grocery Commissioner and address lack of a third entrant
• Assessment and response to the impact of energy prices on inflation, and the impact of inflation on average tax rates will be assessed by 2026
• "Moderate" increases to the minimum wage each year
• Establishment of an "essential worker" planning mechanism will be investigated
• A study into New Zealand's fuel security needs will be commissioned
• The National Policy Statement on Indigenous Biodiversity will be urgently reviewed, the National Policy Statement for Freshwater Management 2020 and the National Environmental Standards for Freshwater will be replaced, and work on the new Significant Natural Areas will be ceased
• The Overseas Investment Act will be amended to limit ministerial decision making to national security concerns, with those decisions more timely
• Fair pay agreements and Labour's replacements for the RMA will be repealed by Christmas. New resource management laws will be "premised on the enjoyment of property rights as a guiding principle"
• Ban on offshore oil and gas exploration to be repealed.
