New Zealand to reshape its defence approach with biggest defence program in decades.

On April 7, 2025, the New Zealand government released the 2025 Defence Capability Plan (DCP), detailing NZD 12 billion (USD 6.84 billion) in defence-related procurement and upgrade commitments over the four-year period from 2025 to 2028. This includes a NZD 9 billion (USD 5.13 billion) increase to the baseline funding. The plan prioritizes combat capability, replacement of ageing equipment, improved interoperability, particularly with Australia, and preparation for long-term security requirements out to 2040.
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The 2025 Defence Capability Plan (DCP) prioritizes combat capability, replacement of ageing equipment, improved interoperability, particularly with Australia, and preparation for long-term security requirements out to 2040. (Picture source: New Zealand MoD)

In the maritime domain, the New Zealand Defence Force (NZDF) will replace its current SH-2G(I) Super Seasprite maritime helicopters. The investment exceeds NZD 2 billion (USD 1.14 billion) and is intended to ensure continued operational capability from Navy frigates, patrol vessels, the fleet tanker, and the multi-role vessel. A separate NZD 300–600 million (USD 171–342 million) frigate sustainment programme will extend the service life of the two Anzac-class frigates, HMNZS Te Kaha and Te Mana, into the early 2030s. Additionally, NZD 50–100 million (USD 28.5–57 million) will be spent on persistent maritime surveillance capabilities through uncrewed surface vessels, designed to complement existing platforms and provide extended sensor coverage.

The plan also includes NZD 100–300 million (USD 57–171 million) for enhanced strike capabilities, including the potential integration of missile systems onto P-8A Poseidon aircraft and Anzac-class frigates. Land-based missile options are also being explored. This investment is aimed at providing a wider range of response options and improved range against maritime threats.

In the land domain, the NZDF will continue replacing its light and medium vehicles, including Unimogs and Pinzgauers, recovery vehicles, and garrison support vehicles. The indicative cost for these projects is NZD 600 million to NZD 1 billion (USD 342–570 million). Upgrades to LAV turrets are included. The Javelin anti-tank guided missile will be replaced with a modernized version at a cost of up to NZD 50 million (USD 28.5 million), with the goal of maintaining medium-range anti-armor capabilities.

The Network Enabled Army (NEA) programme will receive NZD 300–600 million (USD 171–342 million) to equip soldiers and headquarters with digital communication and electronic warfare systems. Equipment will include upgraded radios, integration into vehicles, and network infrastructure. A separate investment of NZD 50–100 million (USD 28.5–57 million) will sustain the Special Forces capability, with a focus on maintaining interoperability with partner forces.

In the aerospace domain, NZD 100–300 million (USD 57–171 million) will be allocated for long-range uncrewed aerial systems, intended to provide persistent surveillance in the Pacific and Southern Ocean regions. The NZDF’s two Boeing 757s will be replaced with new strategic transport aircraft. This project has an indicative cost of NZD 600 million to NZD 1 billion (USD 342–570 million). Space-based systems will also be funded with NZD 300–600 million (USD 171–342 million) to increase access to communications, surveillance, and navigation systems, and to enhance integration with partner networks.

Counter-UAS systems will be procured at a cost of up to NZD 50 million (USD 28.5 million), in response to increased threats posed by uncrewed aerial vehicles. Future upgrades to the P-8A Poseidon fleet and C-130J-30 Hercules are anticipated, although no specific figures have been assigned for those projects within this four-year window.

The SH-2G(I) Super Seasprite maritime helicopters operated by the New Zealand Navy will be replaced, as they were acquired second-hand and are nearing the end of their service life. (Picture source: New Zealand MoD)

In the information domain, NZD 100–300 million (USD 57–171 million) will be spent on cyber defence capabilities to protect NZDF’s digital infrastructure and deployed systems. Investment in classified digital services, allowing secure communication during operations, is also set at NZD 100–300 million (USD 57–171 million). NZD 50–100 million (USD 28.5–57 million) will be used to enhance NZDF’s intelligence function, improving the processing and dissemination of operational data.

The Enterprise Resource Planning system will receive over NZD 1 billion (USD 570 million), enabling a unified platform for workforce, finance, logistics, and asset management. To address supply chain vulnerabilities, NZD 300–600 million (USD 171–342 million) will be allocated to improve logistics resilience, including procurement of spare parts and munitions. The completion of the Consolidated Logistics Project, covering regional supply and storage facilities at Burnham and Linton, will cost NZD 100–300 million (USD 57–171 million).

In terms of infrastructure, NZD 100–300 million (USD 57–171 million) is planned for modernization of accommodation, messing, and dining facilities at Linton Military Camp. The Defence Estate Regeneration Programme will receive NZD 600 million to NZD 1 billion (USD 342–570 million) for maintenance and safety upgrades. The Defence Housing Programme will receive NZD 300–600 million (USD 171–342 million), focused on constructing and refurbishing housing for NZDF personnel. The redesign of the Devonport Naval Base will cost up to NZD 50 million (USD 28.5 million). Infrastructure upgrades at Ohakea Air Base, including airfields, accommodation, and logistics facilities, are budgeted at NZD 300–600 million (USD 171–342 million).

Technology and innovation are addressed through a NZD 100–300 million (USD 57–171 million) investment in a Defence Technology Accelerator, intended to support the rapid development of locally sourced platforms and systems. Defence Science and Technology will receive up to NZD 50 million (USD 28.5 million) for research and development. Digital modernization and information management systems will each receive NZD 100–300 million (USD 57–171 million) to ensure interoperability and real-time data access across domains and with partner forces.

To support the required personnel structure for these capabilities, the NZDF will introduce a new Workforce Strategy, with an initial implementation cost of NZD 50–100 million (USD 28.5–57 million). The NZDF workforce, currently composed of approximately 8,700 Regular Force personnel, 3,300 Reserves, and 3,000 civilians, is projected to increase by 2,500 personnel by 2040.

All capability acquisitions and investments are subject to further business case assessments that will evaluate cost-effectiveness, interoperability with Australia, minimal viable configurations, and opportunities to partner with industry. Reviews will occur every two years to ensure alignment with the evolving strategic environment and technological developments.