NZ Budget 2026 includes $70.7 million to strengthen domestic border security

The New Zealand Government has announced an allocation of $81.5 million in total funding for the New Zealand Customs Service to significantly strengthen the nation's border security framework. Announced on May 22, 2026, by Minister of Customs Casey Costello, this pre-budget package is designed to address escalating threats from transnational organised crime networks targeting New Zealand and the broader Pacific region. The funding announcement precedes the formal delivery of Budget 2026, which is scheduled for May 28, 2026, amidst a previously announced operating allowance of $2.4 billion that prioritises core public services and fiscal discipline.

The centrepiece of the package is a $70.7 million allocation over four years dedicated specifically to bolstering domestic border security. This investment aims to modernise security infrastructure at critical entry points, including ports and airports throughout the country. A separate allocation of $10.8 million will be directed toward expanding the agency's international operations, aiming to disrupt smuggling networks before illicit goods can reach New Zealand shores.

Domestic Border Protection and Infrastructure Upgrades

The $70.7 million domestic border security funding will be deployed across several key operational areas to modernise detection capabilities. This includes upgrading cargo X-ray systems to identify concealed contraband more effectively and tightening security protocols at major ports and airports. Additionally, the funding will cover the acquisition of new defensive equipment for front-line officers, enhanced staff training programmes, and a much-needed increase in capacity for storing seized illicit goods.

The financial structure of this $70.7 million domestic package combines government funding with commercial cost recovery. It comprises $15.3 million in new operational funding and $19.5 million in capital funding. The remaining $35.9 million is sourced from third-party revenue. This third-party component relies on the border clearance levies that became effective on April 1, 2026, reflecting a shift toward a full cost-recovery model. The next scheduled review of these border clearance levies is set for July 2028, allowing the government and The Treasury New Zealand to assess the financial impact on the commercial trade sector.

The Ministry for Primary Industries (MPI) also works alongside the New Zealand Customs Service to manage border integrity, ensuring that commercial cargo and passenger arrivals do not compromise national biosecurity or security standards. This latest funding boost builds upon previous infrastructure upgrades, such as the maritime supply chain enhancements funded in Budget 2023, which led to the acquisition of advanced border tools, including remotely operated vehicles (ROVs) used for underwater hull inspections.

Expanding Offshore Liaison Networks

To tackle transnational crime at its source, the government is allocating $10.8 million to expand the international footprint of the New Zealand Customs Service. This funding will establish four new international liaison posts in critical transit hubs across the Pacific, South America, the Middle East, and Europe. These overseas posts are designed to facilitate real-time intelligence sharing and improve international cooperation with foreign law enforcement agencies.