Wellington, 14 October 2023 (dpa/MIA) - With about 80% of votes counted, New Zealand’s centre-right National Party appeared headed to come out on top on Saturday, but it will need the classical-liberal ACT Party to govern.

The National Party, headed by Christopher Luxon, is sitting at about 40% of the vote.

If the results are confirmed, the National Party would hold 50 seats in the 120-seat parliament.

To form a government, a party or coalition needs at least 61 of the parliament's 120 seats, meaning National would need ACT's 12 seats to form a government.

ACT, led by David Seymour, backs tax reform and reducing bureaucracy, an end to co-governance with Māori and wants a referendum on defining the Principles of the Treaty of Waitangi, New Zealand's founding document.

Incumbent Chris Hipkins and the Labour Party were trailing with about 26% of the vote and poised to have 34 seats, a loss of 31 seats from the previous parliament.

Hipkins, who became prime minister in January after Jacinda Ardern's shock resignation, said he "gave it my all" throughout the campaign but it was not enough.

"We sought to bring people together, to unite, not divide," Hipkins said.

"We lived our values and I believe New Zealand is a better place for that. I want you to stay proud of that. We put people first. We cared. We refused to leave people behind. That is what we do. It is what the Labour Party does," he told party faithful.

"We now have an important role in opposition, to hold the government to account, and to fight for those who stand to lose from their proposed cuts," he said.

"I can promise we will keep fighting for working people because that is our history and our future."

On preliminary results, New Zealand First, which had been wiped out at the last election in 2020, was now expected to gain eight members.

Opinion polls had predicted National and ACT would need New Zealand First to form a government.

Leader Winston Peters could still hold power in this election due to Te Pāti Māori's surprise performance which could increase the size of parliament and mean a larger majority would be required.

Official results for the election will be declared on November 3, once overseas and special votes are counted.

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