Pre-election fiscal update and ACT plan

The story so far

Treasury's pre-election economic and fiscal update forecast smaller deficits and less debt than previously expected, though it did not account for recent global downturns or rising oil prices.^{28 Sep} Treasury also cut its house price forecast sharply, with 2027 growth now projected at 0.6% instead of 4%, citing higher interest rates, more supply and lower migration.^{29 Sep} ACT leader David Seymour criticised the Government's surplus projections and called the policy debate a "dumpster fire".^{8 Oct} ACT then released a fiscal plan to cut debt and return to surplus sooner than the Government, including raising the superannuation age by three months each year and cutting disability benefits by $653 million.^{11 Oct} The plan drew a response: the Mental Health Foundation called the disability cuts poorly researched and based in bigotry, while ACT said they would return per-capita spending to 2017 levels.^{12 Oct}

Latest

National said raising the retirement age is off the table, with Nicola Willis saying politicians must work together on superannuation, and the party blamed a lack of consensus and Labour.^{12 Oct} An economist suggested young people may become frustrated by the rising cost of NZ Super, and there are calls for National and Labour to address its long-term sustainability, although Winston Peters has historically opposed raising the retirement age.^{14, 19 Oct}

Key moments

1. 28 SepTreasury's pre-election update forecasts smaller deficits and less debt.
2. 29 SepTreasury cuts 2027 house price growth forecast from 4% to 0.6%.
3. 8 OctDavid Seymour calls the policy debate a "dumpster fire" and criticises surplus projections.
4. 11 OctACT releases fiscal plan with higher super age and $653 million disability cuts.
5. 12 OctNational says raising the retirement age is off the table.
6. 12 OctMental Health Foundation condemns ACT's proposed disability benefit cuts.
7. 19 OctCalls grow for National and Labour to address NZ Super sustainability.

Written from the stories below; each sentence links to its sources.