ACT puts KiwiSaver earnings tax cut at centre of election launch
ACT says it will scrap the tax on KiwiSaver earnings if elected, and made that pledge the centrepiece of its 2026 campaign launch in Auckland on 4 October 2026.
The commitment was reported in RNZ live coverage of the launch. It applies to earnings, not contributions. In practice, it would remove tax from interest, dividends and other returns built up inside a KiwiSaver account.
The Auckland launch had been signalled the day before. David Seymour and the ACT Party were set to officially launch their 2026 election campaign, according to the New Zealand Herald. The event marked the formal start of ACT's campaign.
The pledge sits alongside settings that changed earlier this year. From 1 April 2026, eligible employees qualify for employer KiwiSaver contributions of 3.5% of pay, according to Inland Revenue. That rate is the baseline for any further changes raised during the campaign.
National has already put KiwiSaver on the campaign agenda. The party promised to make KiwiSaver compulsory for all New Zealand workers, according to the New Zealand Herald. It also promised a $1500 payment to kickstart savings.
New Zealand First is pitching a larger increase. Winston Peters said the party will campaign on lifting compulsory KiwiSaver contributions to 10%, according to the New Zealand Herald. Peters also said the party will campaign on offsetting higher contributions with tax cuts, which links higher compulsory saving to tax relief.
ACT's platform goes beyond retirement savings. The party vowed to scrap New Zealand's net zero emissions target if elected, as reported by RNZ on 6 September 2026. It also vowed to repeal the Zero Carbon Act. Both pledges were released as election climate policy.
The broader context here is that KiwiSaver is now an area of difference rather than agreement. National is offering compulsion plus a kickstart payment. New Zealand First is offering a higher compulsory rate paired with tax cuts. ACT is offering tax relief on earnings. Each option has different costs for the Budget, different admin work for employers and Inland Revenue, and different effects for savers on low and high incomes. Each would need coalition agreement and a law change.
Looking at what this means for the campaign, the order of announcements matters. National moved in June. ACT set out its climate position in September and its savings tax position at its October launch. With all three parties holding distinct KiwiSaver policies, officials, advisers and Press Gallery watchers will now test the costings, the changeover plans and how each plan interacts with the current 3.5% employer rate.
