From NZ Herald · · 1m 50s
Citizenship fees deficit forecast to reach $68.3m by 2033 without fee hike
New Zealand's citizenship fee account could hit $68.3m deficit by 2033 without recent fee increase, documents show.
In brief
New Zealand's citizenship fee account could hit $68.3m deficit by 2033 without recent fee increase, documents show. New Zealand's citizenship fee account is projected to reach a $68.3m deficit by mid-2033 without the recent 14.4% fee hike. Originally reported by NZ Herald.
Citizenship fee deficit warning
New Zealand's citizenship account faces highest deficit on record without recent fee increase.
Fee increase details
Fees increased by 14.4% in August 2026 following 19% rise in November 2025.
Deficit forecast
Without recent fee hike, deficit projected to reach $68.3m by June 30, 2033.
Current deficit
As of April 2026, citizenship fee account has $22.6m deficit.
Application forecast
Over 102,000 citizenship applications expected in 2027/28, up 140% from 2025/26.
Residency visa impact
212,000 people with 2021 resident visa category eligible to apply for citizenship.
Historical application rate
65% of residency visa holders apply for citizenship historically.
Cost increases
Citizenship expenses rose 143% from $12.429m to $30.254m over 10 years.
Rent increase
Processing facility rent rose from $1.86m in 2020 to $2.18m in 2026.
DIA efficiency plan
10% reduction in LISO resourcing planned from 2026/27 to 2033.
Fee recovery plan
Minister Brooke van Velden sought fee increase to recover deficit and meet costs.
Test fee proposal
Cost of citizenship tests to be charged per attempt, not per application.
2024 fee review
2024 fees review found citizenship account in deficit again.
Previous fee history
Citizenship fees last raised in 2003 before entering deficit.
2025 fee increase
19% fee increase in November 2025 followed by 14.4% in August 2026.
Next fee review
Fees to be reviewed again in 2028.
The essence
New Zealand's citizenship fee account is projected to reach a $68.3m deficit by mid-2033 without the recent 14.4% fee hike.
