Pitched as rewarding people who save for retirement by letting their KiwiSaver returns compound without being taxed each year, as an alternative to making contributions compulsory.

📋 ACT: No Tax on KiwiSaver Earnings, October 2026 →

What it does

• Removes tax on qualifying investment earnings inside KiwiSaver funds; the NZ Herald reported the change would also cover other superannuation accounts.
• Ends the annual Government Contribution for members who receive employer contributions, replacing it with the new tax treatment.
• Adds safeguards so KiwiSaver cannot be used to shelter large existing investment portfolios from tax.
• ACT's costings, as reported by the NZ Herald, put forgone revenue at just under $4.1 billion over four years for KiwiSaver and about $900 million for other super accounts, partly offset by about $2.6 billion from ending the contribution, for a net cost of about $2.4 billion.
• ACT's own example: a 20-year-old builder earning $60,000 would have an extra $209,486 by age 65.
• Announced at ACT's campaign launch on 4 October 2026 and later included in its fiscal plan.

The debate

David Seymour said ACT does not support compulsion "but we want to offer a sweetener to KiwiSavers", contrasting the policy with National's and Labour's plans for forms of compulsory KiwiSaver. The NZ Herald noted the change is likely to benefit people with larger balances more. Greens co-leader Chlöe Swarbrick said cutting the government contribution and removing tax on gains "will most benefit the richest", and Labour finance spokesperson Barbara Edmonds, listing the contribution among ACT's proposed cuts, said New Zealanders deserved to know who would be affected.