Māori Cost of Living — Lift Incomes and Strengthen Welfare

The Policy: TPM Cost of Living Policy — 2023 Election →

Pitched as a structural remedy to entrenched economic inequality, Te Pāti Māori's cost-of-living platform argues that short-term relief measures fail to address the underlying causes of Māori poverty. The party's position, articulated by co-leaders Rawiri Waititi and Debbie Ngarewa-Packer, is that "the economy and social security system is broken, and have never worked for Māori," and that lasting change requires transforming income floors, tax structures, and welfare settings simultaneously.

What it does:

• Remove GST from all food — Waititi's member's bill to repeal GST on all food and non-alcoholic beverages was drawn from the ballot in February 2024 and defeated at its first reading on 22 March 2024, with only the party's six MPs supporting it against 117 opposing. The fiscal cost was estimated at $2.6 billion annually by National MP Simon Watts. The party has maintained the pledge as a 2026 election commitment, framing GST as a "regressive tax" that disproportionately burdens lower-income households where Māori are over-represented.
• Raise the minimum wage to $25 per hour — The party's income policy commits to an immediate jump from the current $23.95 (from April 2026) to $25/hour, with annual indexation to the cost of living. This would lift pay for approximately 122,500 minimum-wage workers nationwide, a population skewed toward Māori and Pasifika communities. Māori median weekly earnings of $1,020 sit below the national average of $1,093 (MBIE, June 2021), and Māori men earn approximately 84 cents for every dollar earned by Pākehā men.
• Double baseline benefit levels — The income policy proposes doubling all core benefit rates, removing work-test obligations, sanctions, and financial penalties, and individualising benefits so that relationship status does not reduce entitlements. No fiscal costing has been published by the party for this measure in isolation.
• Cancel welfare debt and reform grants — The party commits to cancelling all income support-related debt held by the Ministry of Social Development and making future additional grants non-repayable. Abatement rates for benefits and student allowances would also be raised to allow recipients to earn more before losing entitlements.
• Student support overhaul — Proposals include a universal student allowance at doubled rates, free public transport for all students, write-off of the living cost component of student loans, and a pathway to full loan forgiveness for those remaining employed in New Zealand for five years.
• Tax restructuring to fund relief — The 2023 tax policy proposed a $30,000 tax-free income threshold (projected to benefit 98% of earners), a new 48% rate on income over $300,000, and a tiered wealth tax of 2–8% on net assets over $2 million — excluding most family homes. The party's own projections put total new revenue at $16.4 billion annually, largely from wealth taxation and an estimated $23 billion from the wealth tax alone, though these figures have not been independently verified by Treasury or the New Zealand Institute of Economic Research.
• Practical transport and fuel relief — The cost of living policy endorses free public transport for students, removal of the excise component of fuel pricing, and broader transport affordability measures. A rent freeze has also been signalled via social media.
• Who qualifies: The income floor and welfare measures are universal by design but disproportionately benefit Māori and Pasifika communities given their over-representation among low-wage workers, benefit recipients, and renters. Māori children face material hardship rates of 23.9%, well above the national average, and Māori unemployment among those aged 15–24 ran at 16.9% (September 2021), compared to 11.8% for all groups. Te Pāti Māori also proposes to exempt Māori freehold land from the proposed undeveloped land tax.
• Who misses out: The GST removal bill was criticised by the Greens' Chloe Swarbrick, who argued it "will not do what it says on the tin" because supermarket monopolies would likely retain a portion of the savings rather than pass them to consumers. ACT's Simon Court warned that removing GST on food would create definitional complexity and undermine the "beauty" of New Zealand's broad-base low-rate GST system.

The result:

Whether the platform delivers on its stated goal depends on which components reach the statute books — and none has so far. The GST food bill was rejected by all other parties in March 2024, including Labour, who acknowledged the cost-of-living crisis but preferred alternative mechanisms. National's campaign chair Chris Bishop described the broader tax agenda as a "radical high-tax agenda" that would "send a wrecking ball through New Zealand's economy." ACT's David Seymour argued it would deter business investment. Critics including the Taxpayers' Union pointed to incentive distortions in the $30,000 tax-free threshold, suggesting secondary earners in households might reduce hours to stay under the limit, and family-owned businesses could split income artificially.

Supporters argue the structural case is compelling: the richest 10% of New Zealanders hold roughly 50% of national wealth, while effective tax rates on high-wealth individuals are estimated by Te Pāti Māori at around 9.4%, compared to 20.2% for ordinary earners. Debbie Ngarewa-Packer has stated that "we should not be seeing record numbers of people lining up at food banks while we live in a country that exports food." The Spinoff's May 2026 Budget analysis found the National-led government's Budget 2026 delivered a net loss to Māori wellbeing according to Te Pāti Māori, with Rawiri Waititi stating that "people do not experience the economy through GDP graphs — they experience hardship at supermarkets and petrol stations." Belinda Himiona of Te Pai Ora noted that whānau face impossible choices between fuel, groceries, and medical care.

As of mid-2026, the full cost-of-living platform remains a set of election pledges with no implemented components during the current parliamentary term. The party's 2026 election manifesto retains the core commitments — minimum wage to $25, GST off food, welfare doubling, wealth tax — but has not yet released fully costed documentation for the 2026 campaign.

The impacts to watch:

• Fiscal credibility: The wealth tax revenue projections ($23 billion annually) have not been subjected to independent Treasury or NZIER scrutiny; international experience with wealth taxes suggests high-net-worth individuals may restructure assets or emigrate, eroding the revenue base that funds welfare expansion.
• Labour market effects: A jump from $23.95 to $25/hour represents a ~4.4% increase above the April 2026 rate; business groups may respond with reduced hours or accelerated automation, particularly in hospitality and retail where Māori workers are concentrated.
• Welfare system design: Removing work-test obligations and doubling benefits represents a significant shift away from conditionality-based welfare; overseas evidence from similar reforms (notably in Finland and the UK) is mixed on whether unconditional support increases long-run employment or entrenches dependency.
• Coalition arithmetic: In any post-2026 coalition scenario involving Labour and the Greens, Te Pāti Māori's leverage to legislate income floors and tax reform will depend on negotiated coalition agreements rather than unilateral action — making the full platform unlikely to pass intact.

*Neutrality note: Some elements of this policy — including references to historical land dispossession and structural racism — are framed by Te Pāti Māori in terms of Treaty of Waitangi obligations and Māori self-determination (mana motuhake). These are contested constitutional and political claims. This overview presents the party's stated rationale without endorsing or challenging those framing positions.*