NZ First Proposes Compulsory KiwiSaver at Birth and BNZ Buyback Plan

New Zealand First leader Winston Peters has unveiled a significant economic platform ahead of the upcoming general election on November 7, 2026. The policy package, announced on Sunday, May 17, 2026, at a campaign event in West Auckland, focuses on two primary pillars: the automatic enrolment of all newborn citizens into KiwiSaver and the state-led acquisition of the Bank of New Zealand (BNZ) from its current Australian parent, National Australia Bank (NAB). These proposals are designed to address long-term national savings rates and the high level of foreign ownership within the domestic financial sector.

The KiwiSaver initiative mandates that every newborn New Zealand citizen is automatically enrolled in the retirement savings scheme at birth. To facilitate this, the government would provide a one-off opening contribution of $1000 for each child. This policy is intended to integrate with existing party objectives for compulsory enrolment across the wider workforce, with the goal of eventually increasing combined employee and employer contributions to 10 percent. The programme aims to establish a substantial capital base for individuals from birth, fostering a culture of long-term investment and financial security.

The Creation of the National Bank of New Zealand

A central component of the economic strategy involves the repatriation of the Bank of New Zealand. Under the proposal, the Crown would buy back the institution from National Australia Bank and merge it with the existing state-owned Kiwibank. The resulting entity would be named the National Bank of New Zealand (NBNZ). This new organisation is envisioned as a fully Crown-owned but commercially operated bank, positioned to provide direct competition to the major Australian-owned institutions that currently dominate the market.

At present, Australian-owned banks, including ANZ Bank, Westpac, and ASB Bank, control approximately 85 percent of the New Zealand banking system. The Bank of New Zealand was previously a state-owned asset until it was sold to National Australia Bank in November 1992 for NZ$1.48 billion. At the time of that sale, the bank held the accounts of six out of every ten New Zealand banking customers. The current proposal seeks to reverse this privatisation to ensure that a greater portion of banking profits remains within the domestic economy.

Funding and Valuation Discrepancies

The financial feasibility of the buyback remains a point of significant debate due to the varying estimates of the bank's current market value. Winston Peters has estimated the acquisition cost at approximately $7.5 billion. However, other financial projections suggest a much higher price tag. Massey Business School Professor Claire Matthews has estimated the market value of the Bank of New Zealand to be in excess of $13.7 billion. Furthermore, some economic analyses, based on the total market capitalisation of National Australia Bank, suggest the value could be as high as $29 billion.