Formation The general election on 23 September 2017 saw the
New Zealand First party hold the balance of power between
National and the centre-left bloc of
Labour and the
Green Party. Following several weeks of negotiations with both National and Labour, New Zealand First announced on 19 October 2017 it would form a minority coalition government with Labour.
Confidence-and-supply support from the Greens, negotiated separately with Labour, enables the Government to have a majority in the House of Representatives. In return, NZ First agreed to drop their demand for referendums on
overturning New Zealand's anti-smacking ban and abolishing the
Māori electorates. The Greens consented to a confidence and supply agreement with Labour and New Zealand First in return for several concessions, including: a
referendum on legalising cannabis, treating alcohol and drugs as a health issue, net zero emissions by 2050 and requiring a climate impact assessment analysis for all legislation In terms of foreign policies, the Government continued New Zealand's participation in the
Trans-Pacific Partnership negotiations, opposed US President
Donald Trump's move to recognise
Jerusalem as the capital of
Israel and reiterated New Zealand's support for the
Two State Solution. In November 2017, Prime Minister Ardern offered to resettle 150 of the asylum seekers from the former
Manus Regional Processing Centre in New Zealand, but was rebuffed by Australia's
Turnbull Government.
2018 On 19 January 2018, Ardern revealed that she was expecting her first child in June, and that Deputy Prime Minister Winston Peters would serve as Acting Prime Minister while she took maternity leave for a period of six weeks. In June 2018, she temporarily relinquished her duties to
Winston Peters, following the birth of her child, for a period of six weeks. Peters became
Acting Prime Minister on 20 June 2018, when Ardern went into labour. Her six-week maternity leave concluded on 2 August 2018. On the domestic front, the Labour-led coalition government implemented several policies and new laws. In terms of education, the Government introduced legislation to stop the creation of new
charter schools while allowing the 11 existing schools to transition to "special character" schools. The Government also launched several transportation, homelessness, family relief, emergency response and health plans and programmes with the aim of improving infrastructure, services, and social and health outcomes. On 17 May,
Finance Minister Grant Robertson released the
2018 New Zealand budget, allocating NZ$2.8 billion in operational funding and NZ$3.8 billion in capital funding. In October 2018, the Government formally established a new government department called the
Ministry of Housing and Urban Development to manage housing and urban development issues. The Government also passed legislation banning future
oil and gas exploration,
banning most non-residents from buying New Zealand homes and
allowing terminally ill patients to use marijuana for palliative care. In June 2018, the Government abandoned efforts to repeal the
Sentencing and Parole Reform Act 2010 (the so-called
three-strikes law) due to opposition from NZ First. In December 2018, the Government announced that it would be holding a
binding referendum on legalising the personal use of cannabis during the
2020 general election. On the foreign policy front, Ardern stated that New Zealand would be seeking to shift away from a 'donor, recipient relationship' with
Pacific Islands nations in favour of forming bilateral partnerships in March 2018. The Government also ratified the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (an amended version of the TPP) in March 2018 and endorsed the UN's
Global Compact for Migration in December 2018. In April 2018,
Attorney General David Parker announced a government inquiry into allegations that the
New Zealand Special Air Service had committed war crimes against Afghan civilians during
Operation Burnham while stationed in
Afghanistan.
2019 Following the
Christchurch mosque shootings on 15 March 2019, Ardern announced that the Government would be reforming
New Zealand's gun laws. On 10 April, the Government passed
legislation banning semi-automatic firearms, magazines, and parts. In addition, the government announced an amnesty and buy-back scheme for prohibited firearms and components. Ardern also proposed
legislation creating a national firearms register, tighter firearms restrictions and a ban on overseas visitors buying firearms in New Zealand. In terms of defence policy, the Government announced the withdrawal of New Zealand forces in
Iraq by June 2020. The
New Zealand Defence Force's non-combat Building Partner Capacity (BPC) training mission had been training
Iraqi Security Forces in support of the US-led coalition efforts to combat
Islamic State forces in
Iraq. In June 2019, the New Zealand military deployment in
Afghanistan was extended for another 18 months. In June 2019,
Defence Minister Ron Mark unveiled the Government's $20 billion Defence Capability Plan 2019, which aimed to boost the Defence Force's capabilities, equipment and manpower over the next 11 years. In terms of economic development, the Government allocated NZ$100 million from the Provincial Growth Fund to supporting Māori economic development, NZ$27 million to improving transportation and the horticulture sector around
Kaipara District and NZ$20 million to rebuilding
Hillside Engineering in
South Dunedin. In terms of employment policy, Workplace Relations and Safety Minister
Iain Lees-Galloway announced that the Government would be raising the minimum wage to NZ$18.90 an hour from April 2020, a $1.20 increase from $17.70. In terms of education policies, the
Education Minister Chris Hipkins announced plans to merge the country's sixteen
polytechnics into a "
NZ Institute of Skills and Technology" by April 2020 in response to deficits and falling domestic enrolments. In May 2019, the Government invested NZ$95 million into teacher training programmes and scholarships over the next four years in order to address the teacher shortage. In August 2019, the Government proceeded to replace 11 industrial training organisations with several workforce development councils. Other notable education policies have included launching a trial free lunch programme, expanding the teaching of New Zealand history (particularly the
Treaty of Waitangi and
Māori history) in schools, and investing NZ$400 million in school property upgrades. In terms of electoral law, the Government introduced legislation restoring the voting rights of prisoners serving less than three years imprisonment and banning foreign donations over NZ$50. In terms of fiscal policies, the Government ruled out a
capital gains tax. Key priorities of the
2019 New Zealand budget included creating a new frontline mental health service, investing $40 million in suicide prevention services, stationing nurses at secondary schools, building 1,044 new homes, investing $320 million into specialist services to address family and sexual violence, investing $200 million into apprenticeships and vocational training programs, investing $1 billion into
KiwiRail, and investing $1.7 billion and $1.2 billion into repairing hospitals and schools respectively. In October 2019 the
New Zealand Treasury and Finance Minister Grant Robertson released a report stating that the Government's surplus had increased from NZ$2 billion to NZ$7.5 billion. The net Government debt had also fallen to 19.2% of
Gross Domestic Product (GDP), which is still short of its self-imposed Budget Responsibility Rules to keep debt at less than 20% of GDP. The total government revenue also increased from NZ$6.2 billion to NZ$86.5 billion as a result of taxation. However, the total
district health board deficit rose to NZ$1 billion. The net Crown debt rose by 0.2% from NZ$57.5 billion in the 2017-2018 financial year to NZ$57.7 billion in 2019. In response, National's Economic development spokesman
Todd McClay claimed that the Government was not investing enough money in taxpayers and highlighted declining business confidence. In terms of health policies, the Government ordered 12 new radiation machines, invested NZ$60 million into
Pharmac as part of a ten-year cancer action plan and created a
Cancer Control Agency and
Suicide Prevention Office. The Government also responded to a
national measles outbreak by creating a National Health Coordination Centre. In terms of housing policies,
Minister of Housing and Urban Development Phil Twyford admitted in January 2019 that the government would be unable to meet its target of building 1,000
KiwiBuild homes by 1 July, with only 33 homes being built as of 23 January. The minister estimated that the government would be able to build only 300 houses by the 1 July deadline. In early September, Housing Minister
Megan Woods announced that the Government would be revising its KiwiBuild programme, including scrapping its initial target of building 100,000 houses over the next years. In mid August 2019, the Associate Housing Minister
Kris Faafoi and Social Development Minister
Carmel Sepuloni announced that the Government would be launching a NZ$54 million program to tackle
homelessness in New Zealand by hiring more staff to work with homeless people and investing $16 million in the Sustaining Tenancies Programme. In November 2019, Associate Housing Minister
Kris Faafoi confirmed plans to amend the
Residential Tenancies Act 1986 in favour of tenants' rights. In terms of immigration policies, the Government scrapped the requirement for African and Middle Eastern refugee applicants to have relatives who were residing in New Zealand and ending a partnership visa policy that discriminated against Indian arranged marriages. Other notable miscellaneous legislation in 2019 have included overturning
"blasphemous libel" legislation, passing the
End of Life Choice Act 2019 subject to a
referendum at the
next election and passing the
Climate Change Response (Zero Carbon) Amendment Act. Other notable Government actions in 2019 have included re-entering
Pike River Mine, upgrading the
New Zealand–China Free Trade Agreement, and apologizing to the victims of the
Erebus air disaster.
2020 COVID-19 mitigation The global
COVID-19 pandemic dominated the Government's
attention and priorities for much of 2020. In late January, the Government chartered an
Air New Zealand aircraft to assist in evacuating New Zealand, Australian, and Pacific Island nationals from
Wuhan. On 2 February, temporary travel bans were imposed on COVID-hit countries like China and Iran. New Zealand's first COVID-19 case was confirmed on 28 February 2020. On 14 March, the Government imposed isolation requirements on foreign travellers, which was followed by a strict border closure on 19 March. On 21 March, Ardern introduced a
COVID-19 alert level system after COVID-19 cases rose to 52. On 25 March, the COVID-19 alert system was raised to Level 4, leading to the closure of schools and most businesses with the exception of essential services such as supermarkets, petrol stations and health providers. To comply with lockdown policies, Parliament adjourned for five weeks commencing 27 March. Prior to Parliament's closure, it passed three bills with cross-party support dealing with emergency spending, remitting interest on tax owed after 14 February, allowing local authorities to meet remotely, governments to take over schools, and suspending no-cause evictions and rent increases for six months. On 25 March, it was announced that
Leader of the Opposition Simon Bridges would chair a cross-party committee called the
Epidemic Response Committee to scrutinise the government's response to COVID-19. Due to declining transmission rates, COVID-19 lockdown restrictions were eased between 28 April and 25 May, allowing more businesses, schools and public gatherings to reopen. On 13 May, the Government passed the
COVID-19 Public Health Response Act 2020 which empowered Police to enter homes to enforce lockdown restrictions without a warrant. On 20 May, the Government released a COVID-19
contact tracing app called the
NZ COVID Tracer. By 3 June, the Government had eliminated social distancing restrictions at businesses, public transportation and all public gatherings. To address the economic impact of COVID-19, the Government announced various relief measures including a NZ$12.1 billion business package, a NZ$56.4 million
Māori communities and businesses assistance package, NZ$27 million to support social service providers such as the
Salvation Army and Women's Refuge, a NZ$1.5 billion wage subsidy scheme, a NZ$50 million media support package, a NZ$23 billion omnibus business support package, and a NZ$1.2 billion unemployment relief package. In late March 2020, Finance Minister Grant Robertson confirmed the government was negotiating with banks to ensure that nobody would lose their homes as a result of defaulting on mortgage payments during the pandemic. In mid-April, Ardern and National Party leader Simon Bridges confirmed that several ministers and MPs would take a 20 percent pay cut. The
2020 budget released on 18 June had a large focus on COVID-19 relief, with key provisions including a NZ$50 billion COVID-19 Response and Recovery Fund and a NZ$3.2 billion wage subsidy scheme. Following the discovery of four community COVID-19 cases in Auckland on 11 August, the Government reintroduced national lockdown restrictions, with heightened restrictions for epicentre Auckland. Due to the outbreak, Ardern also delayed the
2020 New Zealand general election from 19 September until 17 October in response to the recent outbreak in COVID-19 community transmissions. In addition, the dissolution of Parliament was pushed back to 6 September. While the Government's second lockdowns were supported by Cabinet, NZ First leader
Winston Peters and ACT leader
David Seymour regarded them as unnecessary and economically damaging. Lockdown restrictions were eased on 21 September, with limits on public gatherings. On 12 October 2020, the Government signed an agreement with
Pfizer and
BioNTech to purchase 1.5 million COVID-19 vaccines and established a NZ$66.3 million fund to support COVID-19 immunisation programme.
Other policies and developments In terms of education, the Government announced the introduction of
climate change education into the school curriculum and gave parents the ability to consent to their children receiving religious instruction in schools. During the COVID-19 pandemic, the Government announced a NZ$87.7 million distance learning package, a NZ$130 million tertiary students' support package, and extending the school lunch programme. In terms of firearms policy, the Government passed
legislation establishing a new firearms licensing entity and allowing farms and agrarian businesses to apply for firearms endorsements for pest control purposes. In terms of foreign policies, the Government dispatched firefighters, medical personnel, and elements of the
Royal New Zealand Air Force and
New Zealand Army to assist with firefighting efforts during the
2019–20 Australian bushfire season. In late February, Ardern allocated NZ$2 million to Fiji's climate change relocation fund. In early May, Ardern met with
Australian Prime Minister Scott Morrison and several Australian state and territorial leaders to discuss the development of a trans-Tasman COVID-safe travel zone. In late July, Ardern and Foreign Minister Peters announced that New Zealand would suspend its extradition treaty with Hong Kong in response to the Chinese Government's
Hong Kong national security law introduced earlier that month. In terms of health policies, the Government passed
legislation decriminalising abortion, allocated significant public funding to purchasing personal protective equipment, ventilators and respiratory equipment, and supporting drugs and medicines purchasing agency
Pharmac, close contact tracing and immunisation. In terms of housing, the Government passed legislation which eliminated rental bidding and "no-cause" evictions, raised the period of rent increases to 12 months and allowed victims of domestic violence to end a tenancy within two days' notice. In terms of immigration policies, the Government extended temporary work visas due to travel restrictions and introduced fees for travellers quarantining at
managed isolation and quarantine facilities. In other areas, the Government announced plans to merge
TVNZ and
Radio New Zealand into a
new public broadcasting service, invested NZ$12 billion transport infrastructural
New Zealand Upgrade Programme, NZ$300 million into the Aotearoa New Zealand Homelessness Action Plan, and NZ$1.9 million into acquiring
fog cannons for
dairies following a spate of robberies. In late June, the Government abandoned plans to build light rail connecting the Auckland CBD with
Auckland Airport in
Manukau due to disagreements between Labour and NZ First. On 9 March, Ardern appointed Andrew Coster as the new
Commissioner of Police, replacing
Mike Bush who resigned in April 2020. Two high-profile ministerial resignations also occurred that year. On 2 July, Health Minister
David Clark resigned from his portfolio after breaching COVID-19 lockdown restrictions. Following Clark's resignation, Ardern appointed
Chris Hipkins as interim Health Minister. On 22 July, Ardern dismissed
Iain Lees-Galloway from his Immigration, Workplace Relations and
Accident Compensation Corporation (ACC) ministerial portfolios after he admitted having an inappropriate relationship with a former public service employee. Following his resignation,
Kris Faafoi became
Minister of Immigration while
Andrew Little became
Minister for Workplace Relations and Safety, and
Carmel Sepuloni became Minister for ACC.
Second term (2020–2023) 2020 On 17 October, Labour won the
2020 general election in a landslide, winning 50% of the vote and 65 seats in the House, the first time under the current
MMP system that any party won enough seats to govern without a coalition or a confidence and supply agreement. During its
Speech from the Throne in late November 2020, major Government policy announcements included free COVID-19 vaccination, building 18,000 public homes, raising the minimum wage, replacing the
Resource Management Act 1991 and promoting economic recovery from COVID-19 through infrastructure investment and training incentives. In terms of domestic policies, the Government announced plans to ban non-self contained hiring vehicles to combat "
freedom camping," attract "super wealthy" tourists to New Zealand, encourage women to enroll in
vocational education and the trades and extend various work and holiday work visa categories. On 2 December, Ardern
declared a climate change emergency in New Zealand. She also announced several initiatives to reach the Government's 2025 carbon neutral target including requiring the public sector to buy only electric or hybrid vehicles, introducing new building standards for government buildings and phasing out coal-fired boilers in public service buildings. This motion was supported by the Labour, Green, and Māori parties but was denounced as "virtue signalling" by the opposition National and ACT parties. In terms of foreign policy, Foreign Minister Mahuta joined her Australian, Canadian, British and United States counterparts in condemning the
disqualification of pro-democracy Hong Kong legislators as a breach of Hong Kong's autonomy and rights under the
Sino-British Joint Declaration. In mid-December, Ardern announced that New Zealand would be establishing
travel bubbles with the
Cook Islands and Australia in 2021. On 17 December, Ardern also announced that the Government had purchased vaccines from the pharmaceutical companies
AstraZeneca and
Novavax for New Zealand,
Tokelau, the Cook Islands,
Niue,
Samoa,
Tonga, and
Tuvalu.
2021 In terms of domestic policies, the Government announced plans to make
Matariki a public holiday, resume the country's refugee resettlement programme, reform adoption law, new housing initiatives, ban live cattle exports, a new Clean Car rebate scheme and extensive health sector reforms. In terms of new legislation, the Government also
passed legislation entrenching Māori wards and constituencies on local councils, new
counter-terrorism legislation and
housing intensification legislation. In February, the Government compensated kiwifruit orchardists and
Te Puke–based post harvest operator
Seeka for damage caused by an outbreak of
Pseudomonas syringae (PSA) in 2010. In June, Ardern also announced that the Government would apologise for the
dawn raids which had disproportionately targeted members of the
Pasifika communities during the 1970s and 1980s. Other notable policy announcements and actions included a one-off "2021 Resident Visa" pathway for migrants on work visas, the Government's controversial
Three Waters reform programme, a new
Ministry for Disabled People, a new Social Security Insurance scheme, new
freedom camping legislation and proposed
smokefree legislation. The Government's fruit-picking worker recruitment and Progressive Home Ownership schemes drew criticism for wasteful spending and poor results. The Government's agricultural, environmental and Clean Car policies also attracted opposition from farming advocacy group
Groundswell NZ, which mounted nationwide protests on 16 July. On the foreign policy front, the Government suspended high-level bilateral military and political relations with Myanmar following the
2021 Myanmar coup d'état, participated in
international evacuation efforts following the
fall of Afghanistan to the
Taliban and ratified a
free trade agreement with the
United Kingdom. The Government's decision to suspend the processing of Afghan residency visa applications was criticised by human rights advocates and Afghan migrants. On 7 October, Foreign Minister
Nanaia Mahuta confirmed that the Government was sending a special representative to the Middle East to help 825 stranded Afghan visa holders to leave Afghanistan. Though the Government had granted 1,253 visas to Afghans, only 428 had arrived in New Zealand by early October 2021. In terms of COVID-19 policies, New Zealand government imposed departure tests requirements for most international travellers entering in New Zealand and established a one-way travel bubble for
Cook Islanders travelling to New Zealand. On 3 February 2021, Ardern approved
Pfizer-BioNTech vaccine for domestic use. In February 2021, The Government implemented a brief Level 3 lockdown in Auckland following a COVID-19 outbreak in
Papatoetoe,
South Auckland. In mid-May 2021, Health Minister
Andrew Little confirmed plans to amend Section 23 of the
Medicines Act 1981 after the High Court Judge Rebecca Ellis ruled in favour of the Ngai Kaitiaki Tuku Ihu Medical Action Society's contention that the Government's decision to approve the Pfizer–BioNTech vaccine exceeded the Act's powers. On 17 August, the Government reinstated Alert Level 4 restrictions nationwide in response to a community outbreak of
COVID-19 Delta variant. On 23 August, Parliament was suspended for a week with the exception of online select committee hearings. National Party leader Judith Collins and ACT Party leader David Seymour criticised this suspension as undemocratic and an "overreach of power." Following disagreements over holding Parliamentary meetings via
Zoom among political parties, Speaker Trevor Mallard opted for small gatherings inside the debating chamber. In late November, the Government passed controversial
vaccine mandate legislation allowing businesses to dismiss employees who refuse to take COVID-19 vaccines and confirmed plans to ease
managed isolation and quarantine entry requirements for travellers in 2022.
2022 In mid-January 2022, in a terms of COVID-19 policies, New Zealand government asked suppliers
Abbott Laboratories,
Roche, and
Siemens to give it priority in ordering stocks of
rapid antigen tests. Amid the outbreak of the new highly transmissible COVID-19
Deltacron hybrid variant spreading across the country, the Government announced they wouldn't impose further lockdowns, but indoor hospitality venues and events would instead be capped at 100 people, who would have to present proof of their COVID-19 vaccination currency. However, the Opposition's COVID-19 border restriction and vaccine mandate policies culminated in the
occupation of Parliament grounds in Wellington by angry protesters between February and early March 2022, which ended in their forced removal by Police. In mid-May 2022, New Zealand government reopened the country's borders to various work, visitor and student visa holders. In mid-September of the same year, New Zealand government scrapped the country's
COVID-19 Protection Framework ("traffic light system"); ending face-mask wearing and isolation requirements, and most vaccine mandates. On 5 December of the same year, New Zealand Prime Minister Jacinda Ardern stated that the government commissioned a
royal commission of inquiry into its
COVID-19 pandemic response. In terms of domestic policies, the Government passed legislation
banning sexual conversion therapy, created
safe zones around the country's abortion providers,
reform in public health services including the new
Te Aka Whai Ora (Māori Health Authority),
repealed the
Sentencing and Parole Reform Act 2010, banned live animal exports,
replaced the
Children's Commissioner with the
Children and Young People's Commission and
Independent Children's Monitor, instituted
collective bargaining at an industry-wide level, and introduced additional
"smokefree" legislation. The Government also launched a merger of the two public broadcasters
Radio New Zealand (RNZ) and
Television New Zealand (TVNZ) and its flagship
Three Waters reform programme. Other notable 2022 initiatives included launching a New Zealand-centric "
Te Takanga o Te Wā" history curriculum, reducing fuel excise taxes, road user charges and public transportation fares, allocating NZ$23 million from the State Sector Decarbonisation Fund to reduce greenhouse emissions, acquiring full ownership of
Kiwibank and launching a national public transportation payment system called the
National Ticketing Solution. The Government abandoned plans to add
Goods and Services Tax (GST) to
KiwiSaver fees. In November 2022, the Government and the Māori
iwi/tribe
Ngāti Mutunga o Wharekauri settled
Treaty of Waitangi claims relating to the annexation of the
Chatham Islands in 1842. In March 2022, Ardern announced that New Zealand was facing a "cost of living crisis". On 19 July, the Government extended the 25-cent fuel tax cut and the half price public transportation subsidy until late January 2023 in response to rising living costs. On 1 August, the Government launched its "cost of living payment" support programme as part of the
2022 New Zealand Budget. The first NZ$116 payment was released on 1 August with the second and third payments on 1 September and 1 October 2022 respectively. The rollout was plagued by reports that overseas-based New Zealanders were receiving payments since the
Inland Revenue Department had opted to dispense the payments automatically rather than manually check the eligibility of tax residents. In response to rising gang activity and
ram-raiding, the Government invested NZ$562 million in various anti-crime measures and announced that it would be introducing legislation to strengthen Police powers and combat gangs. In response to the
murder of Janak Patel, Ardern and Hipkins announced that the Government would be launching a new retail crime package including a fog cannon subsidy scheme, supporting local councils' crime prevention programmes, and expanding the existing Retail Crime Prevention Fund eligibility to include aggravated robberies. To address a national skills shortage, the Government launched a fast tracked residence policy in May 2022, which controversially excluded nurses, teachers and dairy farm managers. In August 2022, it also embarked on a NZ$14.4 million recruitment programme to recruit more doctors, nurses and radiographers in August. In December 2022, the Government also added nurses and midwives to its immigration green list, making them eligible for immediate residency in New Zealand. On the foreign policy front, the Government contributed to disaster relief efforts following the
2022 Hunga Tonga–Hunga Ha'apai eruption and tsunami. The
New Zealand–United Kingdom Free Trade Agreement was formally ratified in early March 2022. Following the
Russian invasion of Ukraine, the Government expressed support for Ukraine and
imposed sanctions on Russia with cross-party support. The Government also created a special work-visa programme for Ukrainian nationals with relatives in New Zealand and contributed NZ$4 million in humanitarian aid to Ukraine. The Government also contributed military aid and support to
NATO and Ukrainian including military trainers and intelligence personnel. In addition, New Zealand supported Ukraine's legal defence at the
International Court of Justice (ICJ) against Russian allegations of genocide in the
Luhansk and
Donetsk regions. In terms of
Australia-New Zealand relations, the Labour Government reached an agreement with the
Morrison Government to accept 150 refugees a year from the
Nauru Regional Processing Centre and asylum seekers in Australia awaiting processing. The NZ and Australian Governments also expressed concerns about a
Solomon Islands security agreement with China. In late May 2022, Ardern met with
United States President Joe Biden and
Governor of California Gavin Newsom to discuss the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), promote gun control and climate change cooperation.
2023 On 19 January, Ardern confirmed her resignation as Prime Minister, Labour Party Leader and MP for the
Mount Albert electorate prior to the
2023 New Zealand general election, scheduled for 14 October. Following Ardern's resignation, Chris Hipkins was
elected as Labour Party leader while
Carmel Sepuloni succeeded Grant Robertson as Deputy Prime Minister. On 25 January, Hipkins and Sepuloni were formally sworn in as Prime Minister and Deputy Prime Minister respectively. On 1 February, Hipkins announced that the Government would spend $718 million in various "cost of living" support measures including extending the fuel excise and half-price public transport subsidies until 30 June 2023, and extending discounted bus fares to Community Service card holders and tertiary students permanently from 1 July 2023. Between February and March 2023, the Government scrapped several policies and programmes including the proposed
TVNZ–
Radio New Zealand merger and plans to introduce hate speech legislation and lower the voting age to 16 years. Hipkins also confirmed that the
minimum wage would be raised from NZ$21.20 to NZ$22.70 an hour from 1 April 2023 . On 8 February, the Government invest NZ$3 million in discretionary flood recovery payments, NZ$1 million in supporting flood-affected businesses, and NZ$1 million in mental health support. On 14 May, the Government allocated NZ$941 million from the
2023 New Zealand budget to addressing flood and cyclone damage caused by the Auckland Anniversary Weekend floods and Cyclone Gabrielle. On 3 August, the
Hawke's Bay Regional Council,
Napier City Council,
Hastings District Council,
Wairoa District Council and
Central Hawke's Bay District voted to accept the Government's NZ$556 million recovery cost-sharing package, which will be split evenly between the Government and local councils. . In terms of foreign policy, Hipkins undertook his first overseas state visit to
Canberra where he met
Australian Prime Minister Anthony Albanese to reaffirm
Australian-New Zealand bilateral relations. During the visit, Albanese agreed to amend Australia's deportation policy to reduce the deportation rate to New Zealand. Following the
2023 Turkey–Syria earthquake, the Government also contributed NZ$1.5 million to disaster relief efforts in those countries. Following the outbreak of the
Gaza war on 7 October, the Government contributed NZ$10 million to the
International Committee of the Red Cross's (ICRC) and the United Nations'
World Food Programme's humanitarian relief efforts. In late October, the Government support UN calls for a "humanitarian pause" in Gaza and voted in favour of
United Nations General Assembly Resolution ES-10/21. In terms of education, Hipkins and Education Minister
Jan Tinetti announced plans to reduce class sizes and increase the numbers of teachers in mid-April 2023. On 27 June, the Government invested NZ$128 million in increasing tuition subsidies between 2024 and 2025 for all tertiary institutions including universities,
wānanga and the mega polytechnic
Te Pūkenga. In terms of environmental policies, the Government signed an agreement with US investment company
BlackRock on 8 August to set up a NZ$2 billion investment fund to help reach the Government's target of 100 percent renewable energy by 2030. On 6 October, Minister of Conservation
Willow-Jean Prime and Minister of Oceans and Fisheries
Rachel Brooking announced that the Government would create six new marine reserves between
Timaru and the
Catlins in the lower South Island. In terms of health, Health Minister
Ayesha Verrall launched the 2023 Winter Health Plan to boost the capability of health services, vaccination campaigns, and recruit more health professionals. In early June, the Government announced plans to combat
vaping among youths by banning the sale of disposable and reusable vapes in stages and restricting the locations of new vape stores. In terms of water infrastructure, the Government overhauled its
Three Waters reform programme in mid-April 2023, renaming it the
Water Services Reform Programme. The proposed four water services entities were expanded into ten entities but will retain the same split co-governance structure consisting of representatives of local councils and mana whenua representatives. These changes passed into law on 16 August. On 23 August, the Government passed two further bills entrenching its Three Waters reforms. the Water Services Reform Programme. The Water Services Economic Efficiency and Consumer Protection Act 2023 established an economic regulation regime overseen by the
Commerce Commission while the Water Services Legislation Act 2023 outlined the duties, functions and powers of the ten new water services entities, effective 2026. National and ACT have opposed the Three Waters programme and vowed to repeal them if elected into government following the
2023 New Zealand general election. In terms of other infrastructure, the Government signed a cooperation agreement with
Amazon Web Services in March 2023 to build large data centres to provide cloud storage services for government departments, local councils, schools, tertiary education providers, and other public service bodies. On 17 August, the Government unveiled a NZ$20 billion transport plan to build 14 new key roads and public transport over ten years. In terms of justice, Hipkins announced the Government's youth justice policy which included introducing a new measure to punish adults convicted of influencing young people to commit crimes and making the publishing of recordings of criminal behaviour on social media an aggravating factor in sentencing. These legislative changes will not be implemented prior to the 2023 general election. That same day, Labour campaigned on introducing several new youth crime policies including building two "high-needs units" within
youth justice residences in Auckland and Christchurch, improving safety and security at existing youth justice residences, focusing on crime prevention measures including family group conferences, and empowering Family Courts to require youth offenders to perform community services. On 29 August, the Government's
Ram Raid Offending and Related Measures Amendment Bill passed its first reading with support from the opposition National and ACT parties. In terms of resource management, the Government passed the
Natural and Built Environment Act 2023 and the
Spatial Planning Act 2023, the first two laws in its planned overhaul of the
Resource Management Act 1991, on 16 August. On 18 August, Agricultural Minister
Damien O'Connor announced a NZ$370 million plan to help farmers reduce carbon emissions over a five-ear period. In the
2023 New Zealand general election held on 14 October, the Labour Party lost its place as the largest party in parliament to the National Party. In final results, Labour gained 26.91% of the popular vote and its share of parliamentary seats dropped from 64 to 34. Hipkins conceded the election to National Party leader
Christopher Luxon. The Labour Government remained in a caretaker capacity until the release of final results on 3 November 2023. On 10 November, Hipkins and Luxon advised Governor-General
Cindy Kiro to prolong the caretaker government arrangement until the conclusion of coalition talks for the incoming
National-led government. Following Foreign Minister
Nanaia Mahuta's resignation, Grant Robertson assumed her foreign affairs portfolio while Willie Jackson assumed her associate Māori development portfolio. That month, Deputy Prime Minister Sepuloni and Trade Minister
Damien O'Connor represented New Zealand at the 2023
Pacific Islands Forum and
2023 APEC summit. Following the conclusion of coalition negotiations between National, ACT and New Zealand First on 24 November, the
new National-led coalition government was sworn into office on 27 November. ==Election results==