The newly established Electoral Commission has received an extra $7 million in today's budget, paving the way for further reform.
The new commission took on the responsibilities of the old commission and the former Chief Electoral Office last October and will also take on the functions of the Chief Registrar of Electors if a bill before Parliament passes into law.
Funding for the Electoral Commission was increased from $28m to $35m in today's budget.
The boost has drawn praise from the electoral lobby group Campaign for MMP, which said the money would help educate the public about the upcoming electoral referendum at this year's election.
The referendum will ask voters whether they want to keep MMP or replace it with another voting system.
"It is crucial that there is a thorough public information campaign in the lead up to the 2011 referendum," campaign spokeswoman Sandra Grey said.
"We are pleased to see the Electoral Commission has been funded to do this."