Defence Force receives operating funding boost

The New Zealand Defence Force will receive a $957 million increase over the next four years to fund essential operational activity.

Defence Minister Judith Collins made the announcement at RNZAF Base Auckland yesterday.

She also announced the replacement of the Defence Force’s maritime helicopters, the Seasprite SH2-G(I), estimated at $2 billion.  The replacement of the maritime helicopters is one of the projects contained in the recently released Defence Capability Plan.

The $957 million will target Defence Force missions, people, estate maintenance and international engagement, equating to $239 million a year, she says.

“Our personnel are being called upon to go more places, more often and for longer to play New Zealand’s part in contributing to global security. This funding will enable them to do that.”

Chief of Defence Force Air Marshal Tony Davies says there is no doubt the global security environment is changing and the Defence Force needs to step up in contributing to global security.

“Annually this will include $150 million for Navy, Air Force and Army for direct operating and logistics costs, and some increases in our military personnel numbers,” he said.

“This funding will enable the NZDF to sail, fly, patrol and train more often.

“It will assist with rebuilding combat capability through additional field exercises, increasing military personnel numbers, and will mean mission critical systems and capabilities are maintained and available to respond to security threats and other operational tasks as needed.”

Other activities include funding for international deployments ($20 million), a refreshed system of military allowances ($30 million) and funding for civilian staff pay increases ($8 million).

An annual investment of $26 million is earmarked for critical estate maintenance to improve accommodation, working and training conditions for Defence Force personnel.

“$957 million over four years is a welcome uplift in operational funding which reflects the value that the Government sees in the NZDF and its people and enables us to increasingly step up both domestically and internationally.”

Budget 2025 also recognises the Defence Force’s $30 million saving being proposed through the Workplace Savings Programme.

Read the official release from the Beehive here. (external link)