National party leader Chris Luxon and alternate finance minister Nicola Willis announced their tax policy on Wednesday, offering Kiwis $NZ14.6 billion ($A13.4 billion) of tax relief.
Dubbed the Back Pocket Boost, the centrepiece of the policy is a shift of income tax brackets that will see average households with children better off by $NZ250 ($A230) a fortnight.
"National's fully-funded tax relief plan carefully targets the squeezed middle to give New Zealanders a meaningful boost directly to their back pockets," Ms Willis said.
"To those people who are working extra hours taking extra shifts to make it all add up, National sees your effort, we see your work. Relief is on its way."
The tax policy is a major milestone on the road to the October 14 election, with centre-right opposition National slight favourites to end six years of Labour-led governments.
National's pitch is firmly to the "squeezed middle" which it alleges Labour has forgotten with its economic mismanagement.
National's tax cuts will benefit all Kiwis in full-time work, and will be funded by a combination of budget cuts and new taxes.
A large number of government agencies will be cut by 6.5 per cent, with National also pledging to save $NZ400 million ($A368 million) each year from consultants and contractors.
The foreign buyers ban will be lifted for properties worth more than $NZ2 million ($A1.8 million) - more than double the average house price - who will be taxed at a 15 per cent rate.
The ban exempts citizens from Australia and Singapore, which have free trade deals with New Zealand to allow their citizens to purchase property.
National say lifting the ban only at a high level will ensure the policy shift won't lead to a spike in house prices.
"These buyers won't be competing with ordinary New Zealanders and also they will face a major barrier to speculation because they'll be paying 15 per cent more than any New Zealander," Ms Willis said.
Finance Minister Grant Robertson launched into the foreign buyer changes, tipped to raise $NZ740 million ($A682 million) a year, as "fantasy land economics".
"They are relying on an increasing number of foreign buyers to come in and buy a dwindling number of houses ... those houses don't even exist," he said.
"National's plan today is based on dodgy numbers. It doesn't add up."
Mr Robertson said Kiwis might want tax relief but they "have to be aware of the consequences of this" which would be "enormous cuts to public services".
National's tax plan also includes an expansion of tax credits to low-income families, a new childcare credit and an increase to family tax credits.
Median income families with children will see the biggest impact, while average income families without children will get much lesser tax relief.
Other revenue measures to pay for the tax cuts include closing a gambling tax loophole and levying higher visa fees to students, employers, immigrants and temporary workers.
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