What the new government means for economy, business

The three governing parties are vowing to lower the cost of living and create new jobs, while cutting government spending.

Tax cuts are in, but with the foreign buyers ban remaining in place, there's $750 million missing from that plan.

But here's how the new Government will address some other issues.

The spotlight on inflation and price gouging will continue, with pressure to continue on supermarkets, banks and energy providers.

NZ First has secured a select committee inquiry into the banking sector, that will look at competitiveness, customer services and profitability. It also wants the powers of the Grocery Commissioner to be strengthened and to look at the potential for a third supermarket to enter the current duopoly. Petrol stations are also under further scrutiny, with a promise energy prices will be assessed.

There’s a huge shake up underway for building and construction, with most regulations set to be ripped up or relaxed. Plans for higher density housing via the Medium Density Residential Standards (MDRS) are essentially out the window, with it now being “optional” for councils. Big changes are in store for resource management, farming regulation, and the building consent process in general.

Projects to be scrapped include Auckland’s Light Rail and Let's Get Wellington Moving. A new $1.2 billion infrastructure fund will be doled out by Regional Economic Development Minister Shane Jones, creating jobs and boosting economic potential in the regions.

Public private partnerships and tolls may also be used to help fund infrastructure, among new ways of funding big projects.

Fair Pay Agreements will be gone by Christmas and 90 day trials will be expanded to all businesses.

Changes will be made to personal grievance and contractors will no longer be able to challenge their employment status via the Employment Court.

NZ First has secured a guarantee of “moderate” increases to the minimum wage every year. But ACT want to remove median wage requirements for those on skilled migrant visas.

When it comes to migrants, there are some contradictions in policies. ACT want to liberalise and increase caps on various migrant visas, including in the parent category.

But New Zealand First wants to make sure migrants are filling genuine needs and have secured a commitment for long term plans for filling skills gaps or labour shortages.

With ACT's deputy leader Brooke van Velden as Minister for Workplace Relations and Safety, unions are already worried about workers’ rights.

Health and safety laws, tightened following the Pike River mine disaster, are also to be reformed.

The Reserve Bank’s remit will be changed to focus solely on price stability – or keeping inflation within the 1-3% target range. That means housing will no longer be part of its focus. Specific time targets may also be put in place, rather than the current “medium term”.