The New Zealand Defence Force (NZDF) will be transformed into a combat-ready military aligned with regional Allies and Partners and equipped to face escalating geopolitical tensions under a $7 billion initiative.
The Defence Capability Plan (DCP) unveiled in April 2025 will raise defense spending above 2% of gross domestic product over the next eight years, nearly doubling current levels.
“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,” New Zealand Prime Minister Christopher Luxon said. “Put simply, this is the floor, not the ceiling, of funding for our Defence Force.”
The plan targets an array of enhancements, notably in strike capabilities, naval and aerial modernization, and uncrewed surveillance technologies, officials said. Among the planned upgrades are missile systems, long-range remotely piloted aircraft and persistent surveillance platforms to monitor the nation’s expansive maritime domain. Projects range from infrastructure upgrades at Devonport Naval Base to cybersecurity investments.
Defence Minister Judith Collins emphasized the urgency of the transformation, citing an evolving strategic environment. “This plan outlines what resources, equipment and support we need to modernize the NZDF to operate now and in the future,” she said.
Enhanced strike capability options include equipping the Royal New Zealand Navy’s Anzac-class frigates and the Royal New Zealand Air Force’s P-8A Poseidon aircraft with advanced missiles, such as the Norwegian-made Naval Strike Missile or the United States-made AGM-158C Long Range Anti-Ship Missile, aligning with similar acquisitions by Australia. The goal is to create “a deterrent effect to adversaries and an ability to respond to hostile vessels at a greater range,” the plan states.
Investment in frigate sustainment, meanwhile, will ensure that the Navy’s Anzac-class ships remain operational into the early 2030s, bridging the gap until replacement vessels are acquired. Uncrewed autonomous vessels will augment maritime surveillance.
In February 2025, China conducted live-fire naval exercises in the Tasman Sea between New Zealand and Australia, forcing commercial airlines to divert flights. Analysts said the drills were unprecedented, and Canberra and Wellington raised concern over Beijing’s failure to provide adequate notice.
“New Zealand’s geographic isolation no longer shelters us from threats to the extent it once did,” the DCP notes.
The plan also will strengthen the Australia-New Zealand alliance by deepening integration between the nations’ defense forces, with a commitment to “combine military forces in defence of shared interests, common values and territory.” Equipment purchases will be coordinated to improve interoperability. Notably, about $1.2 billion is allocated to replace the Royal New Zealand Navy’s Super Seasprite helicopters by 2027, potentially with the U.S.-made MH-60R, which would align with Australian systems, according to Naval News.
The DCP’s release follows mid-March talks between New Zealand Foreign Minister Winston Peters and U.S. Secretary of State Marco Rubio on bolstering defense cooperation to ensure “security and economic strength in the Pacific region.” The leaders “reaffirmed the strong U.S.-New Zealand partnership and shared commitment to regional stability,” the U.S. State Department said.
