# 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.
- Title: Citizenship fees deficit forecast to reach $68.3m by 2033…
- Summary: 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…
- Keywords: new zealand, citizenship fees, deficit forecast, 2033, fee hike, internal affairs, brooke van velden, citizenship applications, 2027/28, 102000, liso, life and identity service officer
- Source: NZ Herald — https://nzherald.co.nz/nz/politics/citizenship-fees-deficit-forecast-to-reach-683m-by-2033-without-recent-fee-hike-documents-show/Z4H337ITJBDMHH6IRZA7T2WF2Y
- Read time: 1 min
- Topics: new zealand, citizenship fees, deficit forecast, 2033, fee hike, internal affairs, brooke van velden, citizenship applications, 2027/28, 102000, liso, life and identity service officer
## 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.
## Key takeaway

New Zealand's citizenship fee account is projected to reach a $68.3m deficit by mid-2033 without the recent 14.4% fee hike.