New Zealand parties grapple with multi-million dollar election funding gaps

Labour Party president Jill Day says a full election cycle costs about $11 million, including $5 million for the campaign itself and $1.5-$2 million in annual operating costs. Public funding comes mainly from a broadcasting allocation of roughly $900,000, leaving the bulk of financing to private fundraising. Labour’s large-donation haul this year is just under $900,000, while National and ACT have each received more than $1 million from two of New Zealand’s richest individuals.

The Greens rely on membership fees, merchandise, and modest broadcasting funds of just under $400,000, noting that the allocation method, based on past results and MP numbers, disadvantages smaller parties. Analysis of 2023 donation data shows National raised more from both small and large donors than Labour, despite Labour having more individual donors overall. Critics argue the uncapped donation system and uneven public funding create an uneven playing field and raise concerns about donor influence.