Following the 2023 election, New Zealand’s new coalition government swiftly rolled back numerous policies that had protected people and the environment. An unusually large amount of legislation was pushed through under urgency, cutting off public consultation and reducing democratic oversight. Despite coalition agreements promising evidence-based decisions, many changes favoured corporate interests and wealthy donors at the expense of ordinary citizens, often in defiance of expert advice.
Employment: Rolling Back Workers’ Rights and Wages
In its first months, the government made sweeping changes to employment law that undermined worker protections. The Fair Pay Agreements Act—an industry-wide collective bargaining framework—was repealed within weeks of the new government taking office. The coalition also reinstated 90-day trial periods for new employees, removed certain union protections for new hires, and limited workers’ avenues for redress against unfair treatment. Health and safety regulations were weakened, and the government introduced measures to dock pay for workers engaging in “partial” strikes or even for strictly working to contract (“working to rule”).
At the same time, low-income workers saw their real wages effectively cut. The minimum wage for 2024 was raised by only 2% (despite consumer prices rising about 4.7%), and the 2025 increase was capped at 1.5%—barely half the inflation rate. In contrast, overall wages and salaries grew roughly 3.8% over that period. These paltry minimum wage adjustments mean the lowest-paid workers lost purchasing power, contributing to greater hardship and even an uptick in child poverty, while receiving little attention in mainstream media.
Health: Public vs Private Interests
The coalition’s policy reversals have drawn criticism for endangering public health and weakening the healthcare system. One of the most contentious moves was halving the excise tax on heated tobacco products (a $216 million tax cut) with no clear public health rationale. The minister responsible allegedly misled Cabinet in pushing through this tobacco tax break – flouting a World Health Organization convention – yet she was not removed from her post. Indeed, two staffers from her party took jobs with tobacco company Philip Morris, raising serious conflict-of-interest concerns. Meanwhile, a national smokefree law that was set to sharply reduce cigarette availability was repealed and replaced with a watered-down plan widely predicted to fail. Not surprisingly, a 2023/24 survey showed smoking and vaping rates actually increased after these changes. Experts warn that these tobacco policy decisions will translate into more health problems and preventable deaths in years to come.
The Government also scaled back infectious disease protections. Covid-19 control measures were loosened or removed, likely leading to more cases and long-term health impacts – even as “long Covid” was already estimated to be costing New Zealand around $2 billion per year in lost productivity and health expenses.
Environmental health safeguards were similarly rolled back: a law that had prioritized clean drinking water and protected freshwater from pollution was overturned, potentially increasing illnesses (such as certain cancers linked to water quality) and limiting recreational water use.
Healthcare funding and access have also been negatively affected. The Government reinstated patient fees on prescriptions (ending the previous universal subsidy) and allowed GPs to charge higher co-payments, even though many patients already struggle with long waits and a shortage of doctors (many of whom are retiring). Promised upgrades to hospitals and schools were frozen or cancelled, meaning a pledge to increase health and education infrastructure spending in real terms was not kept.
Overall health expenditure is now effectively lower once inflation, population growth, and an aging demographic are taken into account, implying a real cut in services.
The coalition also scrapped a new Therapeutic Products Act, which means unproven medical and wellness products can be marketed without regulatory approval. In another reversal after industry lobbying, New Zealand pulled out of a long-negotiated joint infant formula standard with Australia – a move experts say could put infant health at risk.
Even efforts to reduce alcohol-related harm were undermined: a dedicated alcohol harm reduction fund received only half the increase health experts had called for, a shortfall that will likely result in higher addiction rates, worse health outcomes, and potentially more alcohol-related crime.
Finally, a high-profile election promise to substantially improve access to cancer medications was largely broken – about two-thirds of cancer drugs remain unfunded compared to what is available in similar countries.
General: Inequality Deepening, Social Support Reduced
Beyond employment and health, the coalition enacted a broad range of policies favouring business interests and rolling back social support, often against expert advice. On the social welfare front, the 2024 budget left about 9,000 beneficiaries worse off. The Government eliminated a wage top-up that had ensured disabled workers were paid at least the minimum wage, effectively sanctioning sub-minimum wages for people with disabilities. It also cut funding for roughly one-third of community budgeting services despite a surge in demand for financial counselling.
At the same time, consumer protection in lending was weakened: the Government repealed affordability checks for loans, making it easier for predatory lenders to extend high-interest credit and potentially trapping low-income families in unsustainable debt.
The coalition’s economic decisions strongly favoured asset owners and certain industries. For instance, property investors and developers were handed an estimated $2.9 billion in tax breaks (such as restored interest deductibility on rental properties) even though these investors already pay no tax on capital gains. This largesse did not result in cheaper housing costs for tenants – in fact, average rents continued to rise.
The tax policy also raised questions of conflicts of interest, as many Cabinet ministers themselves own multiple investment properties. In another move pleasing business lobbyists, the government disbanded the national Productivity Commission – this despite the Prime Minister stressing the need to boost productivity. Meanwhile, immigration rules were loosened to allow more temporary migrant labour for farms and other industries. Critics argue this approach may keep wages low and housing costs high while relieving pressure on businesses to invest in productivity improvements or training.
Consumer, environmental, and safety regulations were peeled back across several sectors. A so-called “Fast Track” law was passed to accelerate development projects like intensive agriculture and mining. It effectively cuts out community input and even disallows expert evidence on environmental, health, and community impacts during consent processes. This has prompted warnings that serious long-term harms will be overlooked. (Notably, the Auditor-General launched an inquiry into potential conflicts of interest among ministers advancing this bill.)
In financial services, the government halted plans to further regulate exploitative lending: for example, lenders charging 49% annual interest can continue operating, and proposed “buy now, pay later” controls were dropped, leaving vulnerable borrowers exposed. Corporate accountability was also dialled back by repealing a recent law that allowed company directors to consider environmental and social factors in decision-making – now they are once again expected to prioritize only profits. In the construction sector, “trusted” builders will be allowed to self-certify their work to speed up projects, a policy critics compare to the deregulation that led to New Zealand’s $47 billion leaky buildings disaster.
Similarly, gun control laws were weakened after excluding police input and other official advice, ignoring public safety concerns; yet the minister who championed these gun law changes – and allegedly misled colleagues in the process – was not removed from Cabinet.
Public spending priorities have also shifted toward short-term cost-cutting and private interests. The coalition instituted sweeping cuts to funding for public services and social programs, even as it quietly wrote off billions of dollars of pandemic wage subsidy payments that were improperly obtained by businesses. Funding shortfalls are already forcing community organizations and food banks to close branches or reduce services, despite rising demand for help due to economic pressures on low-income families.
At the same time, the government created a new Ministry for Regulatory Standards, whose mandate elevates protecting property rights and corporate profit over social or environmental considerations in lawmaking – a change that was almost universally rejected in public consultation (only 0.3% of 23,000 submissions supported the bill). Transparency and oversight have suffered in this environment: for example, an Auditor-General review criticized the government’s hasty grant of $24 million to the private “Gumboot Friday” mental health fund, questioning its effectiveness and noting troubling statements by its celebrity figurehead. Even science advisory bodies appear impacted by industry influence: fully half the members of a new Science Advisory Council come from the dairy sector, raising concern about bias in advice on environmental issues.
Housing and infrastructure policies further reflected the coalition’s market-driven approach. Despite a housing affordability crisis, the government did little to increase the supply of homes or provide relief for renters. Instead, it plans to restore “no-fault” evictions (which allow landlords to remove tenants without giving a reason) – a change pushed by large corporate landlords but not widely supported by smaller “mum and dad” property owners. Tenants could also effectively be placed on 90-day trial periods in rentals, undermining security of tenure.
Meanwhile, minimum insulation standards for rental properties are set to be lowered, which will lead to colder, damp homes, higher energy bills for tenants, and worse health outcomes. The government scrapped a major water infrastructure reform (“Three Waters”) that would have centralized and upgraded drinking water, stormwater, and wastewater systems; as a result, local councils will now bear those costs, likely causing significant rate hikes and debt while delaying much-needed upgrades. And rather than take advantage of low-cost government borrowing for infrastructure, the coalition favours public-private partnerships – an approach that often ends up more expensive for taxpayers in the long run due to private profit margins and financing costs.
Education policy saw the return of charter schools, which can access public funding while not fully adhering to the national curriculum or teacher qualification requirements – a model that critics note has higher costs per student without clear benefits. There have also been instances of apparent cronyism in public spending: for example, one university reportedly paid a former National Party minister nearly $1 million to lobby the government for a new medical school campus, a proposal that existing medical schools argued was unnecessary and wasteful.
Finally, the Prime Minister’s priorities have been called into question. In the first nine months of 2024, he embarked on nine overseas trade trips, pursuing business deals abroad while numerous urgent problems mounted at home. By contrast, he made only a single, highly publicized visit to a food bank over the same period – a juxtaposition critics cite as emblematic of the government’s focus on corporate interests over community needs.
Climate Change: Short-Term Gains, Long-Term Costs
Climate policy has undergone a dramatic U-turn under the coalition, alarming environmental experts and even some business leaders. Almost every major decision by the new government has increased New Zealand’s projected greenhouse gas emissions. The administration redirected all new transport funding into building and widening roads, while cancelling or postponing projects for public transport, walking, and cycling infrastructure. It is even planning to raise public transport fares in cities, a move likely to push more commuters back into cars.
At the same time, the government lifted a ban on new offshore oil and gas exploration and rolled back emissions standards on vehicles, inviting a flood of higher-polluting cars onto the roads. It also reversed subsidies and tax incentives for electric vehicles and imposed new road-user charges on EV owners, steps that caused electric car sales to plummet. Additionally, speed limits are being raised on certain highways despite evidence that higher speeds not only increase road fatalities but also lead to greater fuel consumption and emissions.
Officials have warned that this retreat on climate action could carry a steep cost. The Ministry of Business, Innovation and Employment advised that the lack of domestic emissions reductions might leave New Zealand with an “unaccounted-for” climate liability of up to NZ$20 billion by 2030, as the country may need to buy international carbon credits to meet its commitments.
Such backpedalling could also put New Zealand in breach of trade agreements that include climate obligations. Even one of the coalition’s own partners, Act Party leader David Seymour, conceded the government was doing the “minimum” required to uphold the Paris Climate Agreement.
Meanwhile, the government appears to be prioritizing short-term business gains over long-term sustainability. It is doubling down on fossil fuels — for instance, focusing new electricity generation investment on expanding natural gas supply — and dismantling policies aimed at climate resilience. In addition to its emissions stance, various conservation and environmental programs have been undone or defunded, threatening biodiversity and the natural heritage that future generations will inherit.
Conclusion: A Call for People-First Governance
The current trajectory prioritises short-term profits and powerful interests at the expense of democratic process, worker rights, public health, environmental sustainability, and fair housing. It represents a step backward for fairness and wellbeing in New Zealand. The Integrity Institute advocates strongly for policy driven by transparency, evidence, and genuine public interest, calling on New Zealanders to insist that their government places people—not just profits—at the centre of all decisions.
