New Zealand will see its first change of power in six years as the largest opposition National Party is set to win the largest number of seats in the country's general election.

Voters cast their ballots on Saturday. With surging prices and crime among the main issues, attention was focused on whether the ruling Labour Party would be able to stay in power.

The Electoral Commission says with almost all votes counted, the National Party is expected to secure 50 seats, and the Labour Party 34 seats.

Local media reports say the National Party's leader, Christopher Luxon, announced that his party will form a coalition government with a right-wing party.

Luxon entered politics in 2020, after running Air New Zealand as CEO.

During the election campaign, he garnered support by advocating lower taxes, spending cuts and measures to crack down on crime.

The Labour Party has been led by Prime Minister Chris Hipkins since his predecessor Jacinda Ardern suddenly resigned in January. But his party has lost a number of seats.