New Zealand will head back to the polls in 2026, but many of the concerns that dominated the 2023 campaign remain unresolved. Voters are still grappling with high living costs, a chronic housing shortage, questions about foreign policy and defence, climate and agricultural emissions, and the state of the economy and social justice. Below is a summary of the key issues likely to influence the next election.
Cost of living
Inflation has been running around 6% and the official cash rate is at its highest level in 15 years, leaving middle‑class New Zealanders struggling to afford basics. The Labour government has tried to ease the burden by raising childcare subsidies, cutting public transport costs and expanding free school lunches, while the opposition National Party promises tax cuts and tighter control of inflation.
Housing and infrastructure
Rents are at record highs and state‑owned Kiwibank estimates the country has a shortfall of about 23,000 home. The government has pledged to build more than 3,000 publicly owned units and says it has increased the public housing stock by over 12,000 since 2017. The National Party proposes unlocking more land for housing and new financing tools for infrastructure.
Foreign and defence policy
For the first time in almost 40 years, foreign and defence policy has become an election issue. Opinion polls show voters are increasingly worried about security and how New Zealand should respond to China’s growing presence in the Pacific. Labour has hardened its tone toward Beijing while National argues there is little difference between the major parties on foreign policy.
Climate change and agricultural emissions
The Labour government has passed laws aiming to make New Zealand net carbon neutral and reduce agricultural emissions. Its plan to tax on‑farm emissions from the end of 2025 has met strong opposition from rural communities who say it will raise production costs and hurt competitiveness. National would delay the start of the tax until 2030 and lift a ban on genetic engineering and the conversion of farmland to forestry.
Economy and business confidence
The country slipped into a technical recession after two consecutive quarters of negative growth, and the balance‑of‑payments deficit has ballooned to 8.9% of GDP. Labour points to near‑record employment and support for low‑income families as evidence its policies are working, while National wants to boost trade and investment, expand the skilled labour force and cut red tape.
Social justice and Indigenous rights
Debates over the role of Maori in public policy have intensified. Some right‑wing groups oppose increased Maori involvement in government decisions and the creation of a separate healthcare system, while Maori leaders argue for greater recognition of their rights and language.
Understanding these issues and how the major parties propose to address them will be crucial for voters as they prepare for the 2026 election. Watching how policies evolve over the coming year will provide clues to the direction in which New Zealanders hope to take their country.
For individual voters, making informed financial choices matters just as much as national policies. If you’re considering borrowing to manage expenses or invest in your future, our guide to personal loans for everyday Kiwis offers practical advice.