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Who ends up paying for New Zealand's cancelled visa system? A budgeting guide for Ugandan applicants

News · 2026-09-04 · 5 min read

If you are saving for a move to New Zealand from Kampala or Entebbe, or you are an employer weighing whether to sponsor someone, the cost of the visa system is about to come back into focus. Immigration New Zealand (INZ) holds a $90 million shortfall in its visa accounts this year, and a new fee review is scheduled before the end of 2026, barely two years after the last.

Two projects, one gap

The shortfall traces back to two sources. First, Our Future Services, an eight-year, $336 million automation overhaul that is still in its early years. Second, the aftermath of the Biometric Capability Update (BCU), a plan to modernise how INZ handles biometric data. It ran for seven years, from 2018 to late 2025, and was scrapped without producing anything usable.

How the losses grew

The 2026 Budget set aside a $31.2 million write-off for the BCU, but that figure did not hold. In July 2026 another $6 million in costs tied to it came to light, and the ministry's chief executive could not say it was the full amount. By early September 2026 reporting put the total near $40 million. More is possible: INZ could owe the BCU contractor as much as $12 million, on top of at least $4 million in losses the contractor claims and possible penalties of up to $750,000 per month for a missed 2025 deadline. A formal inquiry is under way and ministers have become cautious about details.

How a project can burn seven years

An independent review said the project started in 2018 without proper analysis, skipped due diligence in a 2020 rescope, set up governance too late and let problems rise outside normal reporting lines. A separate investigation asked whether costs were structured to stay beneath the $35 million threshold that would have required Cabinet approval. On March 19, 2024 an update described the programme as sound and robust. Nine days later a quality assurance check found it likely could not be delivered at all. The ministry's chief executive later accepted that the department got it wrong in evidence to a parliamentary committee.

The replacement is already under strain

Our Future Services is about a year and a half old. A review found the business case overstated savings, which rested on cutting 118 full-time roles and reducing overhead in IT, property and corporate services even though those costs mostly do not fall with headcount. The expected 30% productivity gain has not shown up, and student visa processing is only 7–20% above baseline. Treasury now calls the programme high risk.

The part that touches your budget

After the 2024 fee and levy overhaul, INZ relies mostly on its users. An August 2026 analysis found the 2024/25 revenue split was roughly 50% fees, 40% levies and 9% general taxation, meaning about 91 cents of every dollar comes from migrants and sponsoring employers. In 2024 skilled residence visa fees rose from $4,290 to $6,450, and student visa fees doubled to $750. A Cabinet paper that year projected technology spending rising from $13.3 million in 2024/25 to $58.2 million by 2027/28, fourfold.

The user-pays model was a deliberate choice. The new deficit is different: it comes from a failed project, an optimistic business case and unresolved vendor liabilities. The ministry has said that returning to surplus will need cuts and "revenue recovery measures", which in plain terms suggests higher fees. This article states no new fee, so check the official immigration site for the latest figures.

Budgeting steps for applicants

1. List the costs you control: documents, certificates, police clearance from Interpol Uganda and translations if needed.
2. Leave room for fees to change between planning and lodging.
3. Ask any employer what costs they intend to carry, in writing.
4. Present a strong application so a sponsor's investment looks worthwhile. Build AI CV can help you get the CV ready.

Related reading: what the Skilled Migrant reset numbers tell us and what a proposed residence shake-up could mean. Current openings are on the jobs page.

Common mistakes when planning costs

• Using last year's fee list.
• Treating the employer's sponsorship as the only cost to plan for.
• Paying someone for advice who is not a licensed immigration adviser or a lawfully exempt person.

Frequently asked questions

Why is another fee review needed so soon?

The visa accounts carry a $90 million shortfall linked to a scrapped project and a costly replacement.

Who pays for INZ?

About 91 cents of every dollar spent comes from migrants and sponsoring employers.

Has a new fee been announced?

Not in this article. Check official pages.

Can a DIT or UNEB certificate lower costs?

No. Qualifications support your application but do not change fees.

Is student visa processing faster now?

Only 7–20% above baseline, below the promised gain.

Key takeaways

• A $90 million shortfall and a review before the end of 2026 point to higher fees.
• A scrapped project and an optimistic business case caused the gap.
• Users fund most of INZ.
• Budget with buffer and check official fees.

#immigration fees #new zealand #visa budget #sponsored work #employers #uganda