New Zealand Unveils Multi-Billion Dollar Plan to Strengthen Defence Force

The Defence Capability Plan places a strong emphasis on enhancing the combat readiness of the NZDF, aiming to increase the country’s military strike capabilities and deterrent effect.

The New Zealand Coalition Government has unveiled a bold, multi-billion-dollar plan aimed at modernising and strengthening the country’s Defence Force (NZDF) in response to growing global tensions and evolving national security needs. Prime Minister Christopher Luxon, alongside Defence Minister Judith Collins, announced the new Defence Capability Plan, which outlines a transformative approach to defence spending and military readiness.

The $12 billion plan will be rolled out over the next four years, with $9 billion allocated to new spending initiatives. This will see New Zealand’s defence expenditure rise from its current level of just over one percent of GDP to more than two percent by 2033. The proposed funding marks a decisive shift in the country’s defence posture, emphasizing the need for robust military capabilities in an increasingly unpredictable global landscape.

A Long-Term Commitment to Defence Modernisation

While the Defence Capability Plan has a 15-year horizon, the Government has strategically focused on critical investments for the next four years to ensure that the NZDF is prepared to meet emerging challenges both at home and abroad. In addition to the immediate investments, the Government has committed to a bi-annual review of the plan to ensure the funding and strategic focus remain aligned with changing global and domestic security needs.

“This is the floor, not the ceiling, of funding for our Defence Force,” Prime Minister Luxon said, underscoring the government’s determination to ensure that New Zealand remains capable of protecting its interests in an increasingly volatile world.

Luxon also praised the efforts of the Government’s coalition partners, New Zealand First and ACT, for their support in advancing the plan, and particularly acknowledged New Zealand First’s contribution to the procurement of advanced military equipment, such as the new P-8A maritime patrol aircraft and Hercules transport planes.

Boosting Combat Capability and Lethality

The Defence Capability Plan places a strong emphasis on enhancing the combat readiness of the NZDF, aiming to increase the country’s military strike capabilities and deterrent effect. This includes investments in advanced weaponry and systems that will improve New Zealand’s ability to deter adversarial actions that threaten its security interests.

The increased funding will allow for the acquisition of cutting-edge technologies, including uncrewed vehicles, space systems, and other innovations that are expected to provide the NZDF with an edge in modern warfare. Additionally, greater funding will be allocated to Defence Science & Technology to facilitate research and development into next-generation military technologies.

Strengthening International Partnerships

The plan also highlights the importance of enhancing New Zealand’s relationships with key international allies, particularly Australia. Both nations have pledged to modernise their defence collaboration, and the Defence Capability Plan outlines specific measures to strengthen the ANZAC alliance and improve interoperability between the two countries' armed forces. This will enable the NZDF to better integrate with allied forces, providing a more cohesive and agile military response to global threats.

“New Zealand and Australia are united in our commitment to building a modern and integrated ‘ANZAC’ force that can respond quickly and effectively to any security challenges in our region,” said Minister Collins.

Addressing Personnel Challenges and Rebuilding the Core

In addition to investments in technology and capabilities, the Defence Capability Plan aims to address the challenges faced by the NZDF's personnel. Over the past few years, the NZDF has grappled with a decline in personnel numbers, driven in part by the increased use of military personnel in domestic operations such as patrolling Managed Isolation Facilities during the COVID-19 pandemic. These prolonged deployments led to a significant loss of experienced personnel, particularly those with 10-15 years of service.

To rebuild the strength and capability of the NZDF’s personnel, the Government’s plan outlines measures to reduce attrition rates, improve retention, and provide better training and support for service members. Attrition rates, which stood at 15.8 percent in December 2022, have already been reduced to 7.5 percent by February 2025, but further efforts are needed to restore the “hollowed-out” middle tier of experienced personnel.

“The men and women of the NZDF are the backbone of our national security, and they deserve the best equipment, training, and support available,” said Minister Collins. “This plan will ensure that they are ready to face an increasingly complex security environment, whether it’s in combat, humanitarian missions, or disaster relief efforts.”

A Vision for the Future

The 2025 Defence Capability Plan represents a clear vision for the future of New Zealand’s Defence Force. It underscores the Government’s commitment to providing the NZDF with the resources and support it needs to effectively protect New Zealand’s interests and contribute to international peace and security.

The Government’s forward-thinking approach to defence is designed not only to address immediate needs but also to lay the groundwork for a well-equipped and capable Defence Force that can adapt to the challenges of tomorrow.

“This plan ensures that we are not just rebuilding our Defence Force but modernising it for the future. It’s about ensuring that the NZDF is fit for purpose in a world that is changing rapidly,” said Prime Minister Luxon.

With the global security environment in flux, the Coalition Government is positioning New Zealand to take a more proactive role on the world stage, with a Defence Force that can meet both the evolving threats of the 21st century and the country’s international commitments.