Prime Minister Jacinda Ardern believes a funding boost for AIDS research will help ensure the rainbow community is not disadvantaged in healthcare.
The government is committing $300,000 to fund AIDS research that will support the AIDS Foundation's work into HIV eradication.
Ms Ardern and Finance Minister Grant Robertson made the announcement at today's Big Gay Out event in Auckland.
The prime minister said rates of HIV and STI testing would be studied, along with sexual behaviour, and the use of anti-HIV medication.
She said it would help guide the Ministry of Health on how best to target, deliver, and evaluate HIV and STI prevention services in New Zealand.
Jacinda Ardern said the Rainbow Well-being Fund would provide up to $1000 to rainbow organisations that were working to improve mental health, particularly for young people.
She believes things are moving in the right direction.
"Great gains have been made, particularly around equality and making sure that we had in place the same rights for members of our rainbow community. For us as a government, certainly for us a Labour Party we are wanting to look at those mental health and well-being issues," said Ms Ardern.
National leader Simon Bridges said his party would put a further $1 million a year into the AIDS Foundation if elected to government.
Mr Bridges said it would be money well spent.
"They do a great job, they've had great success in relation to HIV and what we've seen is their funding has been the same for at least a decade and with costs and so on that's not right," said Mr Bridges.
Simon Bridges said National would consider supporting other Rainbow initiatives on a case-by-case basis.