Author: MIL-OSI Publisher

Source: Love Queenstown

Queenstown Lakes, New Zealand (7 August 2026) – Queenstown tourism operator Ziptrek Ecotours has become a Love Queenstown Impact Partner, strengthening its support for local climate, conservation and biodiversity projects.

Ziptrek has been involved with the community fund since its launch in 2023, contributing to fundraising events, industry planting days and other environmental initiatives. The new partnership will provide sustained financial backing for grassroots projects across the Whakatipu.

Founder Trent Yeo says the partnership is a natural fit for Ziptrek and reflects the company's belief in businesses working together.

“We love working with Love Queenstown, and this step makes our support more direct and ongoing,” he says. “No one can do it individually. Collectively is much better.”

Love Queenstown Community Fund Coordinator Ash Bickley says Ziptrek has long demonstrated responsible tourism in practice.

“Trent and the team have been an inspiration in this space, showing what's possible when a business puts people and place at the heart of everything it does,” she says.

Since opening above Queenstown in 2009, Ziptrek has planted more than 6,000 native trees and contributed well over $250,000 to community and environmental organisations.

Its support has included Mana Tāhuna, Kiwi Birdlife Park and Sustainable Queenstown, alongside Locals' Days, staff volunteering, environmental restoration, and education.

Ziptrek was also Queenstown's first tourism operator to achieve Net Zero Carbon Business Operations certification, which it has maintained for six consecutive years.

Trent says Love Queenstown gives businesses and visitors a trusted, practical way to contribute to the place they live in or visit.

“Queenstown is developing as a place where people can formally, functionally and loudly contribute,” he says. “And our community wants to see that.”

After almost two decades in tourism, he says sustainability should become a normal part of doing business.

“You have to be simultaneously patient and impatient about these things,” he says.

“The whole idea of sustainable tourism should disappear and just become normal. I am hopeful. I'm also still impatient.”

He says Love Queenstown enables businesses to support credible local organisations without having to identify, assess and administer individual projects themselves.

“Love Queenstown is sitting there waiting to be fed,” he says. “It's a very solid way to ethically give out money without every business having to work out who receives it and whether they're the right organisation. Love Queenstown manages that.”

Love Queenstown Impact Partners commit either 1% of net proceeds or $10,000 or more annually. Contributions are pooled, with 80% supporting immediate environmental action through annual Impact Grants and 20% invested in an endowment fund for future generations.

About Love Queenstown and Love Wānaka

The Love Queenstown and Love Wānaka Community Funds support grassroots environmental efforts, providing an opportunity for visitors and businesses to give back and help care for the environment at the heart of our region.

Launched in 2023, Love Queenstown and Love Wānaka were the first initiatives to come to life from the region's Destination Management Plan: Travel to a Thriving Future. They are delivered in partnership with Destination Queenstown, Lake Wānaka Tourism and the 45South Community Foundation.

Grants are available on an annual, contestable basis for charitable organisations undertaking local climate, conservation and biodiversity work.

About Ziptrek Ecotours

Ziptrek Ecotours has operated zipline experiences in the forest above Queenstown since 2009. Environmental stewardship and education are integrated throughout its operations, visitor experiences and community partnerships.

Love Wānaka and Love Queenstown are initiatives of Lake Wānaka Tourism and Destination Queenstown and are delivered in partnership with 45 South Community Foundation. (CC55258).

Source: Workers First Union

Juken NZ has confirmed the Northland Mill will close permanently today – Friday, 7 August – two weeks earlier than the previously planned closure date of 21 August. Workers First Union organiser Marcus Coverdale says the earlier date came as a surprise to workers and delegates.

“Holy heka, it's a bit of a shock as this wasn't expected to happen for another couple of weeks,” said Mr Coverdale.

Despite the accelerated timeline, workers will be paid out to the end of the originally planned term. The collective agreement's terms and conditions will roll over, with workers also receiving a wage increase and back pay reflected in their final pay calculations.

Some Northland Mill workers have taken voluntary redundancy, while others have transferred to shifts at the nearby Triboard Mill, which remains open. No updates have been provided yet on the Triboard Mill’s future and potential buyer.

“Some of the older Triboard workers were happy to take redundancy now and open up opportunities for younger workers from the Northalnd Mill, which they were really grateful for,” said Mr Coverdale.

“Some of these workers have another 20 years of work left in them while others are coming towards retirement.”

Bargaining for a new collective agreement had been underway with Juken NZ before events escalated rapidly this week.

There remains hope that a buyer could still be found for the Northland Mill site or facilities. A new one-year agreement is in place that could be transferred to a new employer, should a buyer come forward.

“The hope is that an investor could still purchase this mill and hire the experienced local workers with an agreement already in place,” said Mr Coverdale.

Juken NZ is planning to hold an employment transition event with local agencies and employers to support affected workers. Workers First Union acknowledges the work local agencies, training providers, and government agencies have done to support workers through the transition.

“The flow-on effects of the mill's closure will be felt in the Northland community long after the gates close for the last time,” said Mr Coverdale.

Source: Office of the Ombudsman

Compliance with the Official Information Act by Government Ministers and agencies is set to come under closer scrutiny by the Ombudsman as New Zealand’s General Election approaches.

Chief Ombudsman John Allen says it will become more important over the next three months for people requesting official information to get it as quickly as possible and for that information to be accurate and reliable.

“We are now into what’s generally known as the “pre-election period,” which is the three months prior to a general election. During this time, voters will be seeking information that will help them make decisions on who will best represent their interests and who should be making the laws and policies that will affect their lives in the future.

“Ministers and agencies must apply the OIA correctly and work quickly to minimise the risk of information becoming irrelevant.”

Mr Allen says his office is rolling out a suite of initiatives to ensure government ministers and agencies pay extra close attention to their obligations under the Official Information Act over the next few months.

“We are contacting the Prime Minister and the Public Service Commissioner directly to urge them to plan ahead for this period and to get it right the first time for requesters. We will also be asking ministers and agencies to push information out proactively if they see a pattern of requests about an issue, so the information is available to everyone.

“This also has the positive effect for ministerial offices and agencies of minimising the administrative demand on their staff from having to respond to individual requests.”

Mr Allen says requesters also have a part to play in ensuring the Official Information Act functions well and as it is supposed to.

“The public must exercise their rights under the law responsibly. This includes making sure their requests are reasonable and that they refrain from slowing down the process by engaging in things like ‘fishing expeditions.’ This isn’t helpful to anyone. We want them to be willing to engage with Ministers and agencies quickly when clarity is needed about what they are seeking.”

Mr Allen says the role his office will play over the pre-election period will be more critical than ever with people’s growing reliance on social media as a source of news.

“While there are obvious benefits to getting information through social media, there is a risk that people may not be getting the big picture, or a contestable view. This can cause harm and shape public perception in ways that may be deceptive or misleading.

“We will demonstrate what we are doing to make sure New Zealanders have access to reliable, accurate information that they need to decide their vote. As the country’s independent overseer, we can quickly review and confirm what is true and not so the voter can rely on our report for accurate information.”

The Ombudsman’s office will also produce regular, targeted guidance for Ministers, agencies and the public on how to approach requests over the next few months as well as advice on dealing with issues that were problematic during past pre-election periods.

There will also be guidance on the prudent use of AI for agencies, requesters and complainants during this time.

Additionally, the office will publish the number of complaints it has received about Ministers’ handling of OIA requests on a weekly basis, what they’re about and how they’re being dealt with.

“We will be reminding the public that they can seek our advice and can complain to us if they are unhappy about the way their requests have been handled. We are geared up to deal with any such complaints urgently.”

The OIA and you: Election 2026

Source: Greenpeace Aotearoa

The flood of secret money flowing into political parties shows the urgent need to clean up the electoral finance rules if we are to avoid a US-style system of one-dollar-one-vote, says Greenpeace Aotearoa.

“This flood of secret money into political parties is a systemic threat to our democracy. We need to clean up the electoral finance rules as a matter of urgency,” says Dr Russel Norman, Greenpeace Aotearoa Executive Director.

There has been a surge of ‘anonymous’ donations into political parties, nearly $500,000 so far this year. While the identity of the donors is kept secret from the public, there is no way of knowing if in fact the parties receiving the money know the identities.

“We need to close the loophole that allows these anonymous donations, just as we need to ban corporate donations and put a low cap on individual donations,” says Norman.

“These secret donations could be coming from polluting industries such as agribusiness, the oil industry, the fishing industry seeking to influence the political parties to protect their profits.

“We know already that there has been millions going into the political parties connected to fast track applications.

“The process for reforming campaign finance needs to be led by citizens, not political parties. The last independent review of electoral finance rules recommended removing these anonymous donations but the political parties did not progress these changes.

“We call on all political parties to commit to a citizens assembly led process to review the electoral finance laws and to commit to implementing the recommendations of the citizens assembly.

“As a society we need to make significant changes if we are to address the climate and biodiversity crises, but vested interests are donating to political parties in an effort to protect the status quo. We need to free our political system of the corrupting influence of secret money.”

Source: Te Kāhui Tika Tangata Human Rights Commission

Aotearoa New Zealand can be a society where digital technologies support dignity, equality, and participation for all.

As artificial intelligence (AI) becomes increasingly embedded in everyday life, the Human Rights Commission is calling for a human rights and Te Tiriti o Waitangi-based approach to ensure these technologies serve people fairly, transparently and responsibly.

Today the Commission releases its report, AI and Digital Technologies: A Human Rights and Te Tiriti o Waitangi Approach, which outlines how Aotearoa New Zealand can harness the benefits of emerging technologies while protecting people's rights and freedoms.

Chief Human Rights Commissioner Dr Stephen Rainbow says decisions being made today will shape New Zealand's digital future for generations.

“The question is not whether we use AI, but how we use it. We have an opportunity now to build systems that respect human rights and ensure the widest possible access to the benefits of AI. Getting this right will help unlock the benefits of technology and build the public trust and confidence essential to the adoption of AI.”

The report provides a foundation for policy development, practical action and public dialogue on how AI can be adopted, used and governed in ways that respect human rights, honour Te Tiriti o Waitangi and ensure the widest possible benefits to society. It also highlights that New Zealand does not need to start from scratch when responding to AI. Existing human rights protections, domestic legislation, international standards, and Te Tiriti o Waitangi already provide strong foundations for governance and accountability of AI.

The report emphasises the importance of Indigenous rights and Māori participation in decisions about digital technologies, data and AI governance.

Rongomau Taketake Indigenous Rights Governance Partner Dayle Takitimu says Te Tiriti o Waitangi provides essential guidance for New Zealand's approach.

“Māori, like all peoples, have the right to determine how data relating to their communities, interests and identities is collected, used, governed and protected. As AI systems increasingly draw on language, knowledge and data, it is critical that Māori rights, interests and authority are respected.

“A Te Tiriti-based approach is not simply about managing risk. It is about recognising tino rangatiratanga, protecting taonga, and ensuring Māori are active partners in shaping Aotearoa's digital future. If we get this right, we can create technology that benefits everyone while honouring our constitutional foundations.”

Dr Rainbow says that while these technologies can create significant benefits, there are also significant risks including the amplification discrimination, a lack of transparency and accountability as well as risks to privacy and lack of access to redress.

“People have a right to know when technology is being used to make decisions about them, what information is being used, and how they can challenge those decisions. Human rights are not a barrier to innovation. They are the foundation for innovation that people can trust.”

The Commission says a human rights approach provides a practical pathway for balancing innovation with protection, ensuring technology works for people and communities, and building the public trust necessary for AI to be used in a way that can benefit all of us.

To learn more and to download a copy of the report or its executive summary, visit the Human Rights Commission website.

Te Kāhui Tika Tangata Human Rights Commission offers a free and confidential information and dispute resolution service.

Go to the Human Rights Commission complaints page for more information.

Source: New Zealand Nurses Organisation

Dozens of NZNO’s Total Care Health North Island members will hold a full withdrawal of labour strike on Friday 7 August from 8.30am to 4.30pm. The pickets take place in Hamilton, Auckland and Havelock North (Hawke's Bay).

Working under the ACC Nursing Services Contract for Total Care Health by Access, they provide essential care to patients with complex health needs and those requiring wound care under ACC criteria.

NZNO delegate and Total Care nurse, Krystal Lewis, says:

“Our nurses are on the road up to seven days a week, travelling far and wide to assess, treat, support, and prevent clients from requiring hospital admission. They deliver highly skilled, compassionate care in people's homes, often in challenging and isolated environments.

“Despite the vital role we play in keeping people well and reducing pressure on hospitals, our value is not reflected by our employer. We remain the lowest-paid community nursing workforce, despite the complexity, responsibility, and flexibility our roles demand.”

Auckland

When: 10.30am – 11.30pm, Friday 7 August

Where: 24 Manukau Road, Epsom

Hamilton

When: 11.30am – 12 noon, Friday 7 August

Where: 133 Collingwood Street, Hamilton East

Havelock North

When: 11am – 12 noon, Friday 7 August

Where: 3 Martin Place, Havelock North

Source: deVere Group

AI investors should follow three priorities for the rest of 2026, warns the CEO of one of the world's largest independent financial advisory organisations, as sharp swings are exposing which parts of the AI trade are built on real demand and which are not.

Nigel Green of deVere Group's comments come as this year's AI rally is splintering sharply, and this week is making the reason for urgency unmistakable.

Global AI investment is projected to exceed $2.5 trillion in 2026, yet the disconnect between roughly $400 billion in infrastructure spending and only around $100 billion in enterprise AI revenue has become impossible to ignore.

A recent Bank of America fund manager survey found 45% of respondents now flag an AI bubble as the market's greatest tail risk, up from just 11% a few months earlier, with more than half saying they believe AI stocks are already trading in bubble territory.

“The pattern is on full display this week, and it is exactly why investors cannot afford to wait for clarity before adjusting their approach,” says the deVere CEO.

“Asian stocks slipped on Thursday as a recent tech-led rally on Wall Street paused, with the MSCI Asia Pacific Index down 0.2% and South Korea's Kospi falling 1%.

“The S&P 500 pulled back from a record high, and an index of semiconductor stocks lost more than 1%, even as Nvidia itself advanced.

SpaceX tumbled 14% despite posting strong earnings, ahead of the release of roughly $101 billion of shares becoming available for trading Thursday.

One session captured the whole story: strong results still triggering a sharp share-price fall, and a broadly steady chip sector still unable to prevent a sector-wide pullback.

The same split has shown up repeatedly in recent weeks.

Nvidia shares fell 5% in a single session after reports it was pursuing a payment guarantee of up to $250 billion for OpenAI's data centre lease, alongside discussions for up to $350 billion in additional financing, pushing the company's market cap below Apple's for the first time in over a year. Its five-year credit default swap premium surged by the largest single-day amount on record on the news.

SK Hynix posted record quarterly revenue, up 257% year-over-year with a 76% operating margin, and still fell 9% on the earnings call, underscoring how quickly sentiment has turned even for companies delivering strong results.

Nigel Green says this is the moment investors need to stop treating the AI trade as settled and start applying real scrutiny.

“Markets are no longer giving AI companies the benefit of the doubt just because they are spending heavily,” he says. “What happened this week, and in the previous weeks, should be a wake-up call. Strong earnings did nothing to stop a 14% single-day fall. This only happens when investors have already decided that headline growth is not enough on its own anymore.

“Waiting for more certainty before adjusting positioning is itself a risk now.”

He sets out three priorities investors should apply to the AI trade through year-end.

1. Differentiate within the sector rather than treating it as one bet.

Micron, Applied Materials, and Cisco have each posted genuine earnings strength this year on the back of real component shortages and cloud-provider demand, with Cisco raising its 2026 revenue guidance to $62.8 to $63.0 billion on solid AI data-center orders. This stands in sharp contrast to companies whose growth increasingly depends on vendor financing arrangements between suppliers and their own customers.

“The AI trade stopped being a single story months ago, and treating it as one is the fastest way to get this wrong,” Nigel Green explains.

“Some companies are seeing real, measurable demand for the physical components that power this build-out. Others are increasingly reliant on complex financing arrangements to sustain their growth narrative.

“Lumping them together in one portfolio decision is no longer defensible.”

2. Watch balance sheets, not just growth stories.

SpaceX has erased roughly $1.2 trillion in market value since its record-setting June IPO, sitting 47% below its June 16 closing high, pressured by lock-up expirations, Starship test setbacks, and now a fresh $101 billion share unlock landing squarely on an already battered stock.

Meanwhile, Alphabet, Amazon, Meta, and Microsoft's collective 2026 capital expenditure is set to jump 77% to a record $725 billion, well above the $500 billion analysts originally expected, against a combined contractual backlog across the group of roughly $2.1 trillion.

“The stocks under the most pressure this year aren't simply the ones spending the most on AI infrastructure,” notes Nigel Green.

“They're the ones carrying the largest financing entanglements and debt-guarantee exposure. Investors screening for growth alone, without looking at what sits underneath it, are missing the signal that actually matters right now.”

3. Expect volatility around each earnings date rather than a steady trend.

The price-to-earnings ratio has climbed above 40, a level last seen before the dot-com crash, and this week's 14% swing in SpaceX shares on strong earnings, not weak ones, shows exactly how easily financing can unlock events and overwhelm fundamentals in the short term.

“This year has taught investors that AI-adjacent stocks can move 5% to 10%, and sometimes considerably more, in a single session on financing news alone, in either direction,” Nigel Green says.

“Investors need to size positions accordingly, because waiting for a calmer market before adjusting exposure is not a realistic strategy right now.

“Sharp single-day moves around individual earnings dates are very different from a gradual repricing of the sector, and the two need to be told apart urgently.”

Nigel Green concludes that the investors who move decisively now, rather than waiting for the picture to become fully clear, will be the ones best positioned through year-end.

“The investors who do well for the rest of 2026 are likely to be the ones who stopped asking whether AI as a sector is a good bet months ago.

“The more useful question is which parts of the AI trade are built on real demand and which are built on financing structures that still need to prove themselves.

“Getting that distinction right, and acting on it sooner rather than later, is the work in front of every investor holding AI exposure today.”

deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.

Source: Cotality NZ

Thursday 6 August 2026

Interest rates, credit rules, and shifting buyer behaviour are inextricably entwined with the health of the housing market. In line with the recent slowdown in property sales activity, mortgage lending has lost significant momentum – with growth dipping near zero in May and June marking a nearly three-year low. Below, we break down 10 key trends currently shaping the market.

Interest-only (I-O) lending remains ‘under control’. At around 14% of new loans to owner-occupiers in June and 28% to investors (by value), I-O activity is running at its lowest levels for more than a decade. This could signal reduced willingness by banks to lend on this basis and/or reduced demand for it, but it also shows that people aren’t generally needing to look at I-O finance to assist with cashflow pressures.

Repayment problems are low. Another indicator showing that households are generally managing to keep up with their debt commitments is that only 0.6% of the value of outstanding loans is ‘non-performing’ (either 90+ days overdue or considered impaired by the bank, i.e. that they won’t recover at least some of the interest or principal). This is around half the level seen after the GFC.

Banks’ allowances for bad debts have eased downwards. As a proportion of all outstanding loans, RBNZ figures suggest an industry-wide bad debt provision worth about 0.21%, back down to late 2022 levels.

The loan to value ratio rules are not a major restraint right now. In June around 16% of lending to owner-occupiers was done at less than 20% deposit, well below the cap of 25% and even the banks’ potentially self-enforced threshold of 20%.

First home buyers continue to take full advantage of conditions. Even though we’re operating below the overall LVR caps, FHBs are still ploughing in, accounting for around 70% of all low-deposit/high LVR lending in June – or put another way 55% of all FHB loans are being done at less than 20% deposit (or greater than 80% LVR).

Investors may be nearing the limit for low-deposit finance. Nearly 5% of lending to investors in June was done below 30% deposit (>70% LVR), which is a lot less than owner-occupiers/FHBs, but still testing the speed limit for investors of 10% officially or, of more relevance, the banks’ own self-enforced limit of perhaps 5%.

Serviceability testing is a bigger factor than debt to income limits. Recently only around 10% of lending has been done at high DTIs (after exemptions, such as new-builds), well below the speed limit of 20%. In other words, anyone finding they can’t get a loan is probably being turned down because of banks’ own internal affordability assessments (e.g. could the borrower afford the loan at a theoretical rate of perhaps 7%) rather than the official credit rules themselves.

Loan choices are getting longer. In late 2024, less than 10% of new loans were being fixed beyond 12 months and that number was still less than 20% as recently as November 2025. But it’s jumped up to the mid-50%’s for the past five months (with the two-year rate very popular), as borrowers look to protect against any further interest rate increases in a world of higher inflation and heightened uncertainty. The shift longer will generally be applying to people re-fixing existing mortgages as they roll over too.

Existing borrowers are still shopping around. Meanwhile, given that 10% of current loans are floating and 30% are fixed but due to reprice within the next six months, there’s still quite a bit of flexibility to switch lenders – and often take an attractive cashback incentive. Aside from the switching/refi bonanza in December 2025 when all the banks offered 1.5% cash, June’s figure of $2.3bn remained the highest since July last year (and the fourth highest on record back to 2017).

NZ’s LVR is low but it’s concentrated. Recently the stock of outstanding mortgages went above $400bn for the first time, having only gone above $300bn as recently as December 2020. Compared with our estimate of the value of NZ’s housing stock (almost $1.7trn), mortgage debt is low – or ‘paper equity’ is high. But for the estimated one-third of households that carry all of that debt, the swings and roundabouts of mortgage rates and credit policy are more acute.

Looking ahead, with interest rates potentially coming under renewed upwards pressure in the next few months, overall new lending activity may remain in a slowdown. But at least repayment stresses are at a low base, and first home buyers look likely to remain a fruitful group for lenders. The constant need to retain existing borrowers as their fixed rates expire will be a focus, while simultaneously competing to win market share from rival banks.

Source: GlobalData

6 August 2026

Following the Reserve Bank of India’s decision on 05 August 2026 to keep the repo rate unchanged at 5.25% with a neutral stance;

Jaison Davis, Economic Research Analyst at GlobalData, a leading intelligence and productivity platform, provides his perspective:

“This is a deliberate pause, and the RBI can afford it. Inflation is set to rise in the near term. The RBI reads that rise as food- and fuel-led and temporary. A hold at 5.25% avoids tightening into an economy that is already absorbing an external demand shock. The neutral stance is the smart choice. It keeps the option to cut later if growth slows. It also avoids a signal that could unsettle the rupee or the bond market.

“GlobalData sees India’s real GDP growth at 6.66% in 2026 and 6.68% in 2027, and inflation at 4.77% in 2026 and 4.47% in 2027. Inflation stays above the RBI’s 4% target, but it is not out of control. Growth is still strong. That mix supports a steady rate rather than a cut.”

“The growth outlook is the harder call. The US tariff on Indian goods now stands at 18%. That is down from a peak of 50%, but it still weighs on exporters. Sectors such as textiles, gems and jewellery, leather and auto components are the most exposed. They make up more than half of India’s exports to the US. The RBI is keeping rate cuts in reserve until this drag becomes clearer.

“The external side also argues for caution. The rupee has been near record lows this year. It fell to 96.84 against the dollar in May. Foreign investors withdrew about $13.7 billion. Oil is another risk. GlobalData warned in March that the Gulf conflict could push oil toward $100 a barrel. Brent then peaked near $126, and it is firming again. A cut now would widen rate gaps and add pressure on the rupee. That would be a poor trade.

“From here, the main question is how long the pressure lasts. If inflation peaks in the third quarter as expected and growth cools, a cut could come in the second half of FY27. If food, fuel or the rupee spring a surprise, the hold will last longer. For businesses and borrowers, the message is simple. Plan for the repo rate to stay at 5.25% for now. Do not assume the next move is a cut.”

GlobalData is watching three triggers for follow-up analysis. The first is the US and Iran talks. A firm deal would calm the Strait of Hormuz and ease oil and inflation pressure. A breakdown would do the reverse. The second is US tariff policy on pharmaceuticals. The sector is exempt today. Taxing it would hit one of India’s strongest export lines. The third is AI adoption by India’s top IT firms. If it displaces entry-level jobs, weaker wages and spending could push the RBI toward a cut over time.

GlobalData Plc (LSE:DATA) operates an intelligence platform that empowers leaders to act decisively in a world of complexity and change. By uniting proprietary data, human expertise, and purpose-built AI into a single, connected platform, we help organizations see what is coming, move faster, and lead with confidence. Our solutions are used by over 5,000 organizations across the world’s largest industries, providing tailored intelligence that supports strategic planning, innovation, risk management, and sustainable growth.

Source: Royal New Zealand Returned and Services’ Association

6 August 2026

The Royal New Zealand RSA is calling on the Government to provide greater, sustained funding for New Zealand Defence Force remuneration, saying investment in people must keep pace with New Zealand's defence ambitions.

The RNZRSA welcomes the additional funding provided for Defence pay through Budget 2026. However, the average 2.2 per cent pay increase announced on Friday is well below annual inflation of 4.1 per cent. For most serving personnel, the increase has therefore not kept pace with rising prices, leaving them worse off in real terms.

RNZRSA National President Tony Hill said the Government must adequately fund the NZDF to recruit, retain and properly remunerate the people needed to deliver its growing capability.

“Ships, aircraft and technology only become defence capability when there are enough trained and experienced people to operate and maintain them,” Mr Hill said.

“Military personnel step up and accept obligations well beyond those found in most workplaces, including postings, separation from family, irregular hours, injury or worse, and the liability to serve wherever New Zealand needs them. Their remuneration should properly reflect that commitment.”

The recent pay increase provided larger targeted increases for colonel-equivalent and brigadier-equivalent personnel, whose remuneration was assessed as being around 33 per cent below relevant market benchmarks. Mr Hill said addressing that gap may have been necessary to retain experienced senior leaders, but the outcome would understandably be difficult for junior personnel to accept.

“Senior leadership takes many years to develop and retain, but junior personnel are also essential to the capability of the NZDF,” Mr Hill said.

“It is difficult for them to see larger increases directed elsewhere while their own pay is going backwards against the cost of living.”

The targeted increases have taken an important step towards correcting the significant market imbalance affecting senior military leaders. The RNZRSA is now calling on the Government to turn its attention to improving remuneration for junior personnel, experienced non-commissioned officers and critical technical and specialist roles, where pay pressures risk undermining retention and adding to existing workforce gaps.

It is also asking the Government to ensure workforce planning sits alongside major capability investment, so new ships, aircraft, technology and infrastructure are matched by the people needed to operate and sustain them.

The RNZRSA is seeking greater transparency around remuneration decisions and market comparisons, action on pay compression, completion of wider reforms already identified by NZDF, and a review of accommodation assistance to ensure rising housing costs do not further disadvantage serving personnel.

“The Government has set a welcome ambition to build a stronger Defence Force. It must now properly fund the people required to deliver it,” Mr Hill said.

“A fairer and more sustainable remuneration system will strengthen recruitment, retention and readiness across the NZDF. Defence capability starts with its people.”