ACT Party Proposes Three-Year Minimum Wage Freeze

The ACT Party has unveiled a small business policy package for the 2026 election centered on a three-year freeze of the adult minimum wage. The proposal includes reducing the training minimum wage for workers under 20 to 60 percent of the adult rate—down from 80 percent—for their first 12 months of employment, which would set the rate at $14.37 per hour.

To reduce regulatory costs, the party proposes shortening the timeframe for lodging personal grievance proceedings with the Employment Relations Authority to three months. The package also introduces protected employment exit negotiations to prevent such discussions from triggering grievances and ends the compulsory collection of union membership fees by employers. Additionally, the party suggests allowing businesses to deduct taxes from digital technology investments to boost productivity.

Party leader David Seymour argued that legislating higher wages drives inflation rather than genuine wealth and that these measures will create more opportunities for those not in employment, education, or training. Small Business spokesperson Laura McClure stated that current laws designed to improve pay and conditions have failed, asserting that genuine wage growth requires businesses that can grow.