Prime Minister John Key says he is more frugal than his predecessor, Helen Clark, and her ministers.
Labour has been highlighting spending that it says it at odds with cutbacks as the Government prepares for a budget which contains no new funding next week.
Labour MP Chris Hipkins said the Government had upgraded its BMW fleet, beefed up personal security and given themselves a tax-free accommodation allowance.
The latest revelation was a $275,000 makeover for Mr Key's Wellington residence funded by Ministerial Services.
The renovations for Premier House included a $215,000 painting bill, $55,366 on re-carpeting and more than $3000 on new blinds.
"It reeks of hypocrisy when kiwi families are struggling to pay their bills each week," Mr Hipkins said.
"National needs to get its priorities right. John Key needs to make appropriate lifestyle choices as well.
"Every kiwi family struggling to pay the bills knows that if you can't afford to pay for dinner, new carpet and curtains for the lounge get pushed a long way down the list."
Mr Key said the accusations coming from Labour were "a bit rich". The Labour Government spent $45 million upgrading Government House, built a new Supreme Court and spent more each year it was in power.
Premier House had not been painted since 2000 and not carpeted since 1990 and had to be maintained.
"If you don't paint it, the advice we've had is it will deteriorate more," Mr Key said. "It's hardly lavish making sure you maintain an historical asset."
In 2009 Mr Key overruled a refurbishment plan because he thought it unjustifiable but the house now needed a paint job, and the carpet had been stretched four times and could not be done again. It was not replaced in his upstairs rooms.
Also, the spending on security was within budget and the renewing the BMW contract cost less than pulling out of it.
He accused Labour of avoiding the big issues because the Government had made strong gains on crime, unemployment and other areas.
"It's a little ridiculous to be arguing the case somehow that's extravagant simply maintaining an asset we own," he said.
"I don't fly first class like Helen Clark did, I don't take my partner overseas and then expect the government
to pay, I don't do a lot of things that previous governments did do and that's been true of my ministers.
Some expenses would be incurred and that was unavoidable but the Government had overall reduced spending.
"In my view we are managing the books well."
NZPA