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Gun licence fees will not skyrocket after the government found $44.9 million to fund the new firearms system.
Associate Justice Minister Nicole McKee said the Budget 2026 funding would prevent licence fees rising to six and a half times their current level.
"This funding ensures New Zealand can deliver a fair, effective, and modern firearms system without lumping licenced firearm owners with massive fee increases," McKee said.
Without the investment, the firearms system faced a major funding shortfall. McKee said hiking fees before any benefits of the new system were realised would compound years of unfair treatment.
"Licenced firearm owners have been targeted and vilified for years," she said.
The minister warned that pricing people out of licensing risked driving disengagement and pushing firearms into the grey market, which would weaken public safety.
"The wider public benefits from a well-functioning firearms licensing system, including through improved public safety, pest control, and conservation work carried out by hunters and recreational shooters," McKee said.
"That is why it makes sense for the costs of the system to be shared between licenced firearm owners and taxpayers, rather than falling solely on one group."
The funding will establish Firearms Safety and Education New Zealand, an independent regulator separate from Police. McKee said this would improve trust and confidence while allowing Police to focus on enforcement.
Approximately $4.7 million will establish the new Firearms Licensing Review Committee, giving licensed firearm owners access to an independent forum to challenge regulator decisions.
The budget also secured funding through a tagged contingency to modernise firearms ICT systems. The government is withholding the value to protect its commercial negotiating position.
"This funding will enable the separation of firearms regulation from Police, improving the trust and confidence of licenced firearms owners while allowing Police to focus on enforcement," McKee said.