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Citizenship fee hikes aim to stop record deficit in government account

The government’s citizenship account faces its largest deficit ever, prompting fee increases of 14.4% in August after a 19% rise last November.

The citizenship account, which finances New Zealand’s naturalisation services, recorded a $22.6 million shortfall in April 2026 and is projected to reach more than $68 million by June 2033 if fees remain unchanged. To curb the gap, the Department of Internal Affairs raised citizenship fees by 14.4% in August, following a 19% increase in November 2025, and introduced a per-test charge. Minister Brooke van Velden obtained Cabinet approval for these measures and for a plan to reduce Life and Identity Service Officer staffing by 10% starting 2026/27.

The account’s deficit is the highest on record, driven by rising CPI, wages, IT upgrades, ceremony costs and higher rent at the Wellington Waterloo Quay facility. The department expects a surge in grant-by-citizenship applications as 2021 resident-visa holders become eligible, potentially boosting applications by about 140% to over 102,000 in 2027/28. Further fee reviews are scheduled for 2028.

Why it matters

Rising citizenship fees affect applicants and reflect broader fiscal pressures on government services.

In this story

citizenship accountfee increasedeficitDepartment of Internal AffairsBrooke van VeldenLife and Identity Service Officergrant citizenship2021 resident visa
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