New Zealand's 2026 defence budget increases by 6%

New Zealand's defence allocation for 2026 registers a nominal expansion of approximately 6%, increasing from NZD5.9 billion in 2025 to NZD6.2 billion. (Janes Defence Budgets)

New Zealand has announced a 2026 defence budget of NZD6.2 billion (USD3.7 billion), representing a nominal increase of about 6% from NZD5.9 billion in 2025.

The total budget consists of a ‘Vote Defence Force' allocation of NZD5.9 billion and a ‘Vote Defence' appropriation of NZD309 million.

Vote Defence Force covers salaries, training costs, capital injection authorisations, capital expenditure, and military preparedness. Vote Defence is allocated for managing procurement and sustainment activity and policy advice.

The capital injection allocation in the 2026 defence funding increased by almost 70% to about NZD422 million.

The capital injections for 2026–27 are directed towards major defence projects, including NZD76.7 million for platform restoration activities involving ANZAC frigates and HMNZS Canterbury, NZD64.4 million for the Future Air Mobility Capability and NZD58.7 million for the Network Enabled Army (NEA) modernisation programmes, and NZD25.6 million to replace the military's utility vehicles.

The Future Air Mobility Capability project was launched in 2017 to support Royal New Zealand Air Force's (RNZAF's) tactical airlift operations and replace the service's legacy C-130(H) Hercules military transport aircraft. New Zealand selected C-130J-30 Hercules as the replacement aircraft in 2020, all five of which were delivered in 2024.

NEA is aimed at upgrading the New Zealand Army's communications, planning, and intelligence capabilities to secure digital-based technologies and systems.

The capital injections also include NZD15.5 million for the navigation and encrypted radio upgrade for the NH90 medium helicopter fleet, about NZD13 million for Bushmaster vehicle communication systems, and NZD9.8 million for the Future Naval Base programme to modernise the Royal New Zealand Navy's (RNZN's) base in Devonport, Auckland.