Formation The name comes from the initials of the Association of Consumers and Taxpayers, founded in 1993 by
Sir Roger Douglas and
Derek Quigley. Douglas and Quigley intended the Association to serve as a pressure-group promoting
Rogernomics—the name given to the radical free-market policies implemented by Douglas as
Minister of Finance between 1984 and 1988. The Association grew out of the '
Backbone club', a
ginger group in the
Labour Party that supported Douglas and his policies. In 1996, New Zealand switched to using the
MMP electoral system. The new electoral system gave smaller groups a much better chance of entering Parliament, and encouraged the Association to transform into a political party and contest elections. The nascent party's manifesto was based upon a book written by Douglas entitled
Unfinished Business. Douglas served as ACT's first leader, but soon stood aside for
Richard Prebble (his old ally from their days in the
Labour Party).
1996–2004: Prebble's leadership Under Douglas, ACT had languished at 1% in opinion polls, but with Prebble's
populist rhetoric the party increased in support. In the , ACT fielded 56
list candidates. Prebble won the electorate, In the , ACT obtained 7.04% of the party vote, making it eligible for nine list MPs. In the , ACT obtained 7.14% of the party vote, making it eligible for nine list MPs. On 2 December 2004, both Douglas and Quigley announced that they would step down as patrons of ACT. They stated as the reason that they wished to have more freedom to disagree with the party publicly.
2005 election Prebble's sudden departure from the leadership of ACT in 2004 signalled a decline in the party's electoral fortunes.
2008–2011: First term in government In the
2008 New Zealand general election, ACT fielded 61
list candidates, starting with
Rodney Hide,
Heather Roy, Sir
Roger Douglas,
John Boscawen,
David Garrett and
Hilary Calvert. The election marked an improvement in ACT's fortunes. Hide retained his Epsom seat and ACT's share of the party vote increased to 3.65% (up from the 1.5% gained in the 2005 election). The combination allowed the party five MPs in total. In addition, the
National Party won the most seats overall, forming a
minority government, the
Fifth National Government of New Zealand, with the support of ACT as well as the
Māori Party and
United Future. John Key offered both Hide and Roy posts as Ministers outside
Cabinet: Hide became Minister of Local Government, Minister for Regulatory Reform and Associate Minister of Commerce, while Roy became Minister of Consumer Affairs, Associate
Minister of Defence and Associate
Minister of Education. After 2008, some caucus MPs and organisational members became dissatisfied with ACT's coalition partner status and argued at ACT's national conference (27 February 2010) that there were insufficient fiscal responsibility policy gains for their party and that the National Party had slid from its earlier commitment to the politics of fiscal responsibility over the course of the previous decade. Throughout 2009, there had been at least one reported ACT caucus coup attempt against Hide's leadership, believed to have been led by Deputy Leader Heather Roy and Roger Douglas. However, it faltered when Prime Minister Key supported Hide's retention and threatened a snap election. In addition, the party's polling of a lowly one to two percent in most opinion polls meant only Heather Roy might accompany Hide after any forthcoming general election, if Hide retained ACT's Epsom pivotal electorate seat. On 28 April 2011, Hide announced that he was resigning the ACT leadership in favour of former National Party leader and
Reserve Bank Governor
Don Brash who joined the party that morning. Brash's leadership was unanimously approved by the party board and parliamentary caucus on 30 April. Brash promised to focus the party on controlling
government debt, equality between Māori and non-Māori, and rethinking the
Emissions Trading Scheme, with a target of getting 15 percent of the party vote in the next election. In November 2011, a recording of a conversation held between
John Key and the former National Party member and former
Mayor of Auckland City John Banks, who had been selected as the new ACT candidate in Epsom, was leaked to
Herald on Sunday.
3 News also obtained copies of the recording suggesting the two politicians were discussing issues related to ACT New Zealand's leadership. The election was a disappointment for ACT, with the party's worst election result since it began in 1996. John Banks retained the Epsom seat for ACT, however the 34.2% majority held by Rodney Hide was severely cut back to 6.3% as large numbers of Labour and Green voters in Epsom tactically split their vote and gave their electorate vote to the National candidate Paul Goldsmith. Nationwide, ACT received only 1.07% of the party vote, placing eighth out of 13 on party vote percentage. As a result, ACT were only entitled to one seat in the new Parliament, filled by John Banks. Subsequently, Don Brash announced that he had stepped down as leader during his speech on election night. Following the 2011 general election John Banks stated that he believed that the ACT brand "...just about had its use-by date..." and needed to be renamed and relaunched. Their previous partners, the National Party, again won the most seats overall, and formed a
minority government. The
Fifth National Government of New Zealand had ACT support as well as that of
United Future and the
Māori Party, providing the coalition with
confidence and supply.
2014 election At the ACT Board meeting of 2 February 2014,
Jamie Whyte became the party's leader-elect, and David Seymour was made the ACT candidate for
Epsom.
Kenneth Wang was appointed deputy leader on 15 April 2014. In the
September 2014 general election, Seymour won his seat, and ACT moved from
seventh to sixth place, despite a decline in their share of the popular vote. Seymour took over as party leader on 3 October 2014.
2017 election Wang resigned as deputy leader on 9 July 2017, the same day ACT released its party list; Beth Houlbrooke was announced as his replacement. The party list had 39 candidates, none of whom were elected. Party leader David Seymour was re-elected in the
Epsom electorate, giving the party its only seat. Following the election, held on 17 October (postponed from September), ACT increased their share of the party vote to 7.6%, winning 10 seats including Seymour's Epsom seat and nine from the party list. This was the party's best-ever result. Some political analysts attributed ACT's strong result as partly benefiting from the collapse in support for the National Party and
New Zealand First. In early May, the incumbent Labour Party revised the motion to raise concerns about human rights abuses in Xinjiang but omitting the term genocide, which was subsequently adopted by the New Zealand Parliament on 5 May. In response, the Chinese Embassy claimed that the motion made "groundless accusations" of human rights abuses against China and constituted an interference in China's internal affairs. On 19 May 2021, the ACT Party opposed
Green Party MP
Golriz Ghahraman's motion calling for members of parliament to recognise the rights of Palestinians to self-determination and statehood while reaffirming its support for a two-state solution to the
Israel-Palestine conflict. Deputy Leader Van Velden justified ACT's opposition to the Green motion on the basis of Green MP
Ricardo Menéndez March's tweet that said "From the river to the sea, Palestine will be free!."
2023–present: Coalition with National Final results of the
2023 general election indicated that ACT won 8.64% of the party vote, resulting in 11 seats. In November 2023, ACT entered into a coalition deal with the National party to form part of the
Sixth National Government of New Zealand. As part of National's coalition agreement with ACT, the Government would adopt ACT's policies of restoring interest deductibility for rental properties and pet bonds. In addition to adopting National's youth crime and gang policies, the new Government would adopt ACT's policies of rewriting firearms legislation. The new Government would also scrap the previous Labour Government's fair pay agreements, proposed hate speech legislation, co-governance policies, Auckland light rail,
Three Waters reform programme, and
Māori Health Authority. The Government would also establish a new
Ministry for Regulation headed by Seymour that would review the quality of new and existing legislation. While National did not support Act's proposed referendum on the
principles of the Treaty of Waitangi, the Government would introduce a Treaty Principles Act and amend existing
Treaty of Waitangi legislation to focus on the "original intent of the legislation." Within the National-led coalition government, Seymour became the first
Minister for Regulation and was designated as
Deputy Prime Minister from 31 May 2025. Van Velden became
Minister of Internal Affairs and Minister for Workplace Relations and Safety.
Nicole McKee became Minister for Courts and Associate Minister of Justice (firearms).
Andrew Hoggard was appointed as Minister for Biosecurity and Food Safety while Karen Chhour was appointed as
Minister for Children and Minister for the Prevention of Family and Sexual Violence.
Simon Court was appointed as Parliamentary Under-Secretary for the Minister for Infrastructure and
RMA Reform. On 7 February 2024, the ACT Party launched a campaign to support its Treaty Principles Bill, aiming to "restore the meaning of the Treaty of Waitangi to what was actually written and signed in 1840." ACT also reiterated its call for a referendum on the Treaty's application if the bill progresses past the initial stages. Opposition to the bill included criticism from
Te Pāti Māori co-leader
Debbie Ngarewa-Packer, who accused Seymour of deliberately trying to divide New Zealand, and outgoing
Labour MP
Kelvin Davis, who stated that his party will continue to oppose the "Pākehā Government spiders". On 7 June 2024,
Stuff journalist
Tova O'Brien reported that allegations of intimidation, unfair treatment of women and a "trainwreck campaign" within the ACT party had led six staff members and volunteers to resign following the 2023 general election. In addition, the party's board was facing a vote of no confidence. Complainants likened elements of the 2023 election campaign to the
Hunger Games and alleged that candidates and volunteers were bullied. In response to the allegations, the ACT party confirmed that it had conducted an independent review into its campaign. The party's president Catherine Isaac stated that the party had accepted the review's recommendations and acknowledged that political campaigns could be stressful on people, who also had to balance their lives and careers. During ACT's annual rally on 9 June, Seymour downplayed allegations of a "culture of fear" within the ACT party and reiterated the party's support for the review's recommendations. In his speech, Seymour said that the party's support had grown by 1,000 percent in the past five years and set out a 15% voter target for the 2026 general election. In early July 2024, ACT invoked the "agree to disagree" provision of its coalition agreement after the National-led government decided to progress the
Fair Digital News Bargaining Bill, which had been introduced by the previous Labour Government. In late February 2025, the Government agreed to support the ACT party's proposed legislation to extend the parliamentary term from three to four years. In mid March 2025, Seymour confirmed that ACT would be fielding candidates during the
2025 New Zealand local elections, marking the first time the party would contest local body elections. On 6 May 2025 ACT declined to support the National Party's proposed legislation forcing social media platforms to restrict access to users under the age of 16 years. Consequently, National was unable to introduce the legislation as a government bill and had to introduce it as a member's bill. On 11 May, ACT invoked the "agree to disagree" clause of its coalition agreement after the National Party declined to support McKee's call for a review of the New Zealand government's firearms registry, and that a more "thorough and independent" review be conducted for the 2025-2026 financial year. On 31 May 2025,
David Seymour succeeded
Winston Peters as deputy prime minister, under the terms of the coalition agreement in 2023. He became the first ACT deputy prime minister. In June 2025, the party announced their first candidates for the
2025 local elections, who campaigned under the
ACT Local banner. Logistics manager James Ebbett would run for the
Central Hawke's Bay District Council, retired pharmacist David Ross for the
Tasman District Council, and local businessman Nathan Atkins for the
Waimakariri District Council. In late January 2026, ACT opposed the introduction of new legislation targeting
modern slavery. National and Labour subsequently announced they would co-sponsor a new bill targeting modern slavery. == Principles ==