New Zealand to Double Defence Spending

09 April 2025

HMNZS Canterbury is currently deployed to New Zealand’s sub-Antarctic Islands (photos: NZ Navy)

TSAMTO -- The New Zealand government will increase defence spending in the 2025/26 financial year to NZ$9 billion (US$5 billion) and plans to increase this amount to 2% of GDP over the next four years, for which an additional NZ$12 billion will be allocated.

Details of the new Defence Capability Plan were outlined in a speech by Prime Minister Chris Luxon, who called for increased defence spending to ensure security in the new geopolitical environment, Radio New Zealand reports.

The country's defence spending for the new financial year is said to be a significant increase from the New Zealand Defence Force's budget of just under $5 billion in 2024/25.

Over the next four years, the plan calls for investments in projects such as purchasing Javelin antitank missiles and unmanned aerial systems, replacing naval helicopters, and extending the service life of frigates.

The plan calls for increased military spending and stronger ties with Indo-Pacific countries to address climate change and strategic competition between the West, China and Russia.

New Zealand's first quadrennial national security review was originally scheduled to be released in 2023, but its launch has been delayed for various reasons.

The New Zealand Defence Force has been systematically underfunded for the past few decades, with defence spending amounting to just over 1% of GDP. (TSAMTO)

Multi-billion dollar Defence plan unveiled

Prime Minister Christopher Luxon and Defence Minister Judith Collins have released the Government’s plan which outlines planned commitments of $12 billion of funding over the next four years, which includes $9 billion of new spending by the Government.

“Global tensions are increasing rapidly and New Zealand has stepped up on the world stage, but our current Defence spending is simply too low” Prime Minister Christopher Luxon says.

“This blueprint has been designed with a 15-year horizon but deliberately focuses on critical investments needed in the next four years to ensure our Defence Force can adapt as the world around us changes.”

The 2025 Defence Capability Plan outlines indicative investments to ensure the NZDF is:

-Combat capable with enhanced lethality and deterrent effect: This includes increased strike capabilities which will increase our ability to deter actions counter to New Zealand’s interests.

-A force multiplier with Australia and interoperable with partners: New Zealand and Australia have committed to modernize our alliance and further strengthen our bilateral defence relationship including the development of a more greatly integrated ‘Anzac’ force.

-Innovative and has improved situational awareness: Innovation in this plan covers new ways of doing things, exploring new technologies for the NZDF such as uncrewed vehicles and new space technologies and increased funding for Defence Science and Technology.

In the next four years, significant investments include:

-New maritime helicopters – which add combat and deterrent capability to our naval fleet in support of national security objectives

-Network Enabled Army – investments which focus on ensuring our Army can communicate securely and work with our partners

-Javelin anti-tank missile upgrade – investment in the new version of the Javelin guided anti-armour missile system

-Replacing the Boeing 757 fleet with new aircraft to transport personnel and freight where they need to be – from personnel to diplomatic and trade missions.

Defence Minister Judith Collins says the world is inherently more dangerous and our personnel are at the frontline of New Zealand’s security.  

“They cannot do their jobs without the right equipment and conditions.  This plan outlines what resources, equipment and support we need to modernise the NZDF to operate now and in the future,” Ms Collins says. (NZDF)