The Coalition Government today released a multi-billion dollar plan for a modern, combat-capable New Zealand Defence Force (NZDF) that pulls its weight internationally and domestically.
“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 new Defence Capability Plan contains $12 billion of funding over the next four years, which includes $9 billion of new spending. This will raise New Zealand’s defence spending from just over one per cent of GDP to more than two per cent in the next eight years.
“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 Government has committed to reviewing the plan every two years. Put simply, this is the floor, not the ceiling, of funding for our Defence Force.
“I want to acknowledge our coalition partners, New Zealand First and ACT, for their unwavering support in advancing this plan – and note New Zealand First previously drove the procurement of our new P-8A and Hercules aircraft.”
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.
The 2025 Defence Capability Plan outlines indicative investments to ensure the NZDF is:
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Innovative and has improved situational awareness: Innovation in this plan covers new ways of doing things, as well as exploring new technologies for the NZDF such as uncrewed vehicles, new space technologies, and increased funding for Defence Science & Technology.
Ms Collins says the men and women of the NZDF have endured 35 years of cuts and underfunding.
“They join up to serve the people of New Zealand, however that is needed, and we feel immense pride and gratitude when we see them stepping up and into situations that the rest of us are running from,” Ms Collins says.
“But the way they were used for a prolonged period of time to patrol Managed Isolation Facilities during Covid led to many experienced personnel – those with 10-15 years’ experience – leaving for other career options.
“That has left us with a hollowed-out middle in our personnel, and this plan allows us to address that. Already our attrition has fallen from 15.8 percent in December 2022 to 7.5 percent in February 2025 – but we know we need to rebuild the core of the NZDF so we can fully utilise the ships, aircraft, vehicles and weapons we already have, while looking to what is needed in the future.
“Our personnel are expected to be called upon more often, in more places, and for longer. For this, they must be equipped and trained for a range of operations, to be more combat capable and able to deter actions adverse to our interests while also being ready to provide essential humanitarian assistance and disaster relief.
“This plan does that. It gets our NZDF out of the intensive care unit and not just growing but growing where we need it to.”
Note to editors:
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The attached graph shows New Zealand’s historic spend profile on Defence, as a percentage of GDP, and the forecast spend as a result of this Defence Capability Plan. The uplift in spending shown in the graph between 2018 and 2021 reflect the investment made in the P-8A Poseidon and C-130J-30 Hercules aircraft.
Source: https://www.beehive.govt.nz/
