ACT Party releases fiscal plan including retirement age increase

The ACT Party has released a fiscal plan that aims to reduce net Crown debt by $12.4 billion. The plan proposes raising the superannuation age by three months every year until it reaches 67 by 2035. This change would include 'compassionate access' for individuals who have spent a substantial portion of their careers in physically demanding jobs.

To achieve these savings, the party intends to reduce the annual government operating allowance from $2.4 billion to $2 billion. Other proposed savings include cutting disability benefits by $653 million, reducing foreign aid to 2017 levels (excluding funds for Ukraine), and abolishing 'demographic' ministries. The plan also seeks to prevent migrants from claiming benefits for five years after entering the country.

The party's strategy aims to return the country to a budget surplus sooner than current government projections. Under the OBEGALX calculation method, a small surplus of $79 million would be reached in 2028. Under the traditional OBEGAL measure, a much larger surplus of $5.1 billion is forecast for 2029.

New spending items in the document include a $2 billion National Cancer Centre and a $150 million capital contingency for a new secondary school in Epsom. The plan also includes a $500 investment fund for Year 11 students and a $59 million scheme for a Working with Children Card.

How it developed

• Sun 11 Oct, 4:30pmThe $2 billion cancer centre idea was put forward by candidate Paul Henry.

Compiled from reports by 1News, The Post, Stuff and Otago Daily Times.