The Government has unveiled a sweeping $12 billion plan to modernise New Zealand’s Defence Force, in what Prime Minister Christopher Luxon described as a major shift to ensure the country can respond to growing global instability.
Speaking at Parliament on Monday, Luxon said the Defence Capability Plan would significantly increase military spending and deliver a “combat-capable, modern force” that can better support international allies and protect New Zealand’s interests.
He said $9 billion of the package is new funding, and defence spending would rise from just over one per cent of GDP to more than two per cent over the next eight years. The new plan would be reviewed every two years and designed with a 15-year horizon, though the initial focus is on the next four years.
“This is the floor, not the ceiling, for funding our Defence Force,” Luxon said. “Global tensions are increasing rapidly, and New Zealand has stepped up on the world stage, but our current Defence spending is simply too low.”
He also acknowledged support from coalition partners New Zealand First and ACT, crediting New Zealand First for pushing through the procurement of the P-8A Poseidon and Hercules aircraft in the previous term of government.
The Defence Capability Plan includes a range of strategic investments, such as replacing the Defence Force’s Boeing 757 fleet, upgrading anti-tank missile systems, expanding cyber security capabilities, and introducing long-range remotely piloted aircraft. The frigates will be sustained through the early 2030s, and the ageing Super Seasprite helicopters will also be replaced. There are plans to boost intelligence functions, modernise military accommodation, and develop a new Devonport naval base design.
Defence Minister Judith Collins said the NZDF had endured decades of underfunding and that the time had come to equip personnel with the tools they need to meet growing operational demands. She said the plan would address key gaps and strengthen the force’s ability to operate alongside international partners, particularly Australia.
“People join the Defence Force to serve the country, but they cannot do their jobs without the right equipment and conditions,” Collins said. “This plan outlines what resources and support we need to modernise the NZDF to operate now and in the future.”
She said Defence personnel were increasingly expected to be deployed more often, for longer, and across a wider range of missions—from combat to humanitarian assistance.
“Our personnel need to be combat-capable and equipped to deter threats to New Zealand’s interests, while also ready to help in emergencies,” she said. “This plan does that. It gets our NZDF out of the intensive care unit and not just growing, but growing in the right areas.”
Collins acknowledged that the use of Defence Force personnel in managed isolation during the Covid-19 pandemic had contributed to high attrition, particularly among experienced staff. She said the plan includes workforce strategies to rebuild the “hollowed-out middle” of the organisation and retain skilled workers.
Attrition has already dropped significantly, from 15.8 per cent in December 2022 to 7.5 per cent in February this year, but Collins said more work was needed to strengthen the core of the force so it could properly utilise its ships, aircraft, vehicles, and weapons.
The Government said the plan would support a Defence Force that is more lethal, better integrated with allies, and capable of adopting new technologies such as uncrewed systems and advanced space surveillance.
Luxon said the investments were about preparing for a more unpredictable world.
“Our allies are watching,” he said. “New Zealand must be in a position where we can pull our weight, support our partners, and protect ourselves. This is about ensuring our future security.”
