The election was triggered by the resignation of Prime Minister and Labour Party Leader Jacinda Ardern, which was announced on 19 January 2023.

She announced her resignation as leader of the Labour Party in a televised statement on 19 January 2023, stating that she no longer had sufficient energy for the demands of the role.

His nominators included Michael Wood and Kiri Allan, both of whom were considered by media as prospective leaders.

In his first media appearance as the presumptive leader, in front of Parliament on 21 January, Hipkins told media he found out he had his party's unanimous support as "the door to the plane [that he had boarded for a flight to Wellington] was closing," leaving him unable to respond to his messages for 40 minutes.

[14][15] Ahead of a scheduled press conference that was timed for two hours after the beginning of the caucus meeting, where the outcome of the election was to be announced, Labour MPs Jenny Salesa and Shanan Halbert confirmed on Twitter that Hipkins would be the new Labour leader and broke the news that Kelvin Davis would stay on as deputy party leader while social development minister Carmel Sepuloni would replace Grant Robertson as deputy prime minister.

The New Zealand Herald reported that possible dissent led by David Parker was quelled after Hipkins agreed to review the party's tax policy.