Finance Minister Michael Cullen says he does not have the riches to cuts taxes like his Australian counterpart.
Australian Prime Minister John Howard has fired his first shots of the election campaign promising voters A$34 billion ($40b) in tax cuts.
Mr Howard said he would be able deliverthe cuts because of Australia's booming economy, which he said would be put at risk if Labour won at the polls in November.
National's finance spokesman Bill English earlier said New Zealand was being left in the dust by the cuts.
But Dr Cullen said the Australian government had increased its budget surplus forecasts by $70 billion since its budget in May.
"That dwarfs our updated forecasts even taking into account the size of the two different economies," he said.
Dr Cullen said there was nothing in the Australian tax cut package for those earning under $30,000 a year and just $20 a week for those earning up to $74,000 a year, but a $128 a week for those on $200,000 a year.
"Not the kind of programme you would expect to see from a Labour-led government," Dr Cullen said.
Mr English said Dr Cullen had failed to deliver any tax cuts while at the same time Australia had increased thresholds and reduced some personal income tax rates consistently since 2000.
"Australians workers have received their share of Australia's budget surpluses through back-to-back tax cuts," Mr English said.
"In New Zealand Dr Cullen has hoarded surpluses to buy votes and cancelled the only tax cuts he ever promised."
Mr English said record numbers of New Zealanders were leaving for Australia and the tax announcements would open the "floodgates" further.
