Congratulations for new PM Jacinda Ardern flow in from home and abroad

Labour leader Jacinda Ardern has received plenty of congratulations after confirming a coalition deal with NZ First. ROSS GIBLIN / STUF

Stuff - Katarina Williams

Reaction to the news that Jacinda Ardern will be the country's next prime minister has been swift, coming in from both home and abroad.

Australian Labor Party leader Bill Shorten congratulated New Zealand Prime Minister-elect Ardern on Facebook, saying he looked forward to building and strengthening the connection between the two nations.

"In electing their third woman to serve as prime minister, New Zealanders have again provided an inspiration for women and girls around the world," he said.

"More than a century after the first Anzacs fought and fell together, Australia and New Zealand's friendship is stronger than ever."

"After many nail-biting days, a great result," she said.

Greenpeace NZ executive director Dr Russel Norman, a former leader of the Green Party, was "cautiously hopeful" as the complexion of the new-look government took shape.

Norman said he hoped the Ardern-led administration would act to clean up the country's rivers.

The E tū union was "ecstatic" to welcome in Ardern as the next prime minister.

Assistant National Secretary John Ryall said its members would be celebrating in expectation of a better deal for working families.

"Our members supported change, they have campaigned for change, they voted for change and they will be ecstatic about this outcome," he said.

"Our members made a huge commitment to this election campaign in workplaces, in their communities and in their families; talking to their workmates, hitting the phones to promote change and pounding the streets getting out the vote."

The outcome was a vindication of that effort and the values behind it – a fair deal for working people and a fairer distribution of the country's wealth, he said.

New Zealand Educational Institute (NZEI Te Riu Roa) called on the newly-formed coalition to make good on pre-election promises to restore funding for schools and early childhood education.

NZEI president Lynda Stuart said it hoped to make "real progress" on pay equity and making headway on fixing the teacher shortage.

"After nine years of neglect and deliberate underfunding, fixing school and early childhood education will not be easy and it won't be cheap. But all our children are worth it."

The International Lesbian, Gay, Bisexual, Trans and Intersex Association (ILGA) said it was excited to welcome in a new Labour-lead government.

"After a long campaign and coalition negotiations, it is great to know that LGBTI rights will continue to progress in New Zealand," ILGA co-convenor Rawa Karetai said.

Wellington Chamber of Commerce chief executive John Milford also congratulated the new coalition.

While the organisation had "some reservations" about Labour's position on immigration, employment relations and trade, Milford said he "welcomed the beginning of a conversation" with a Labour-led coalition.

Bloomberg business news reported soon after the announcement that the New Zealand dollar plunged as much as 1.3 per cent.

- Stuff