Explainer: How a government is formed after an election

October 21, 2026
Summary

The general election determines the make-up of Parliament, but forming a government usually requires negotiations between political parties.

While there are some legal requirements, government formation islargely a political process guided by constitutional conventions set out in the Cabinet Manual

Election results and government formation

The 2026 general election will be held on 7 November. Preliminary results will be available on election night, but the official results, which include special votes and any changes arising from the final count, are scheduled to be declared on 27 November. 

As set out in our Caretaker Convention Explainer, the incumbent government remains in office until the new government is appointed. It continues to be the lawful government but governs under the caretaker convention.

Winning the most seats does not automatically entitle a party to form the government. Following an election, the Governor-General ascertains which party or grouping of parties appears able to command the confidence of the House, based on public statements by political parties. By convention, the Governor-General accepts the outcome of that political process, including the decision about who will lead the government as Prime Minister.

Political parties may begin negotiations based on the preliminary results, particularly if the outcome is clear. However, special votes often change the final allocation of seats, which parties need to take into account. In previous elections, New Zealand First has preferred to wait until the official results are known before beginning substantive negotiations.

The negotiation process

The negotiation process is inherently political. There are no prescribed procedures. There is, however, a deadline for the first sitting of Parliament after an election. Under section 19 of the Constitution Act 1986, Parliament must meet within six weeks of the date fixed for the return of the writs. For the 2026 election, this means by 14 January 2027.

This is one of the few strict statutory rules relating to the government formation process. Negotiations have sometimes been protracted, lasting nearly two months after the first MMP election in 1996. Following the most recent election, they took around six weeks. Nevertheless, in the 30 years since MMP was introduced, a government has always been formed before Parliament was required to meet.

Negotiations will commonly address matters such as:

1.      Policy commitments, including which policies from the parties' respective election programmes will be adopted, modified or abandoned.

2.      Ministerial appointments, including the allocation of portfolios and representation in Cabinet.

3.      Working arrangements, including how decisions will be made and how disagreements between parties will be managed.

Any agreement reached may also need to be approved through the participating parties' internal processes before it can be finalised.

Coalition and support agreements

There are several ways in which parties can agree to form or support a government.

A coalition agreement involves two or more parties forming a government together. A distinguishing feature is that the coalition parties are normally represented in Cabinet.

In a confidence and supply agreement a party agrees to support the government on confidence votes (confidence) and funding the government, such as votes on the Budget (supply).  The minor parties agreeing to this arrangement retain freedom to oppose other government policies. In return, it may secure policy commitments or ministerial positions, usually outside Cabinet. Confidence means sufficient parliamentary support to remain in government, while supply refers to parliamentary approval for the funding needed to govern.

Governments can also combine these arrangements. In 2005, for example, Labour formed a coalition with Jim Anderton, the sole Progressive Party MP. It also had confidence and supply agreements with New Zealand First and United Future, whose leaders, Winston Peters and Peter Dunne, became Ministers outside Cabinet. The Greens separately agreed to abstain on confidence and supply votes.

These are political agreements rather than legally enforceable contracts. Nevertheless, they are important statements of the basis on which a government is formed and expects to maintain parliamentary support.

Public service support during negotiations

Although government formation is a political process, political parties involved in negotiations may need information and analysis from the public service to inform those negotiations. Arrangements for providing this support were first developed in 1996 and are now provided for in Schedule 3 of the Public Service Act 2020.

Requests must be made through the Public Service Commissioner. The nformation provided may include policy costings and analysis of implementation issues, but not advice or recommendations on the merits of proposed policies. Agency chief executives must approve the information provided, which is subject to the Official Information Act 1982 and is generally released after negotiations conclude.

Appointment of the new government

Once the negotiations have concluded and the Prime Minister has been appointed, the PM advises on the appointment of other Ministers. The selection of Ministers and allocation of portfolios takes into account any agreements reached between parties in or supporting the government.

The swearing-in ceremony marks the beginning of the new administration and the end of the caretaker period.

What to look for after the election

For businesses and organisations engaging with government, the government formation process provides several indications of the direction of government policy.

Coalition and support agreements are an early indication of the government's priorities, including which election commitments have survived negotiations and which have been modified or abandoned. The level of detail contained in the agreements depends on the political parties. The 2017 Labour led government agreed to high level priorities in their agreements. The 2023 National led government had very detailed policy specific agreements.

The allocation of ministerial portfolios also signals which parties and Ministers will have responsibility for particular policies.

Briefings to Incoming Ministers (BIMs), prepared by government departments and agencies, identify significant issues, existing work programmes and decisions requiring attention. These are usually released publicly.

The Speech from the Throne, delivered at the State Opening of Parliament, sets out the government's principal policy and legislative intentions. Decisions about whether to reinstate unfinished legislation from the previous Parliament will also indicate which existing proposals remain priorities.

Franks Ogilvie can help businesses and organisations understand the implications of these developments, identify the key decision-makers and engage effectively with the new government. Our experience across politics, government and the law enables us to work across political lines and navigate the opportunities and challenges that a new government brings.

For further information, please contact Managing Director Brigitte Morten or Director Marcus Ganley.

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