Rates Capping Bill passes first reading

Legislation to halt excessive rates increases and ensure councils’ focus to be on fixing the basics and keeping rates affordable has passed its first reading in Parliament today, Local Government Minister Simon Watts says.

Under the Local Government (Rates Capping) Amendment Bill, councils will be required to

keep annual rates increases within a target range of 2-4 per cent.

“Steep and unexpected rates increases add pressure to household budgets at a time many New Zealanders are already feeling the squeeze,” Mr Watts says.

“This Government is serious about bringing stability and certainty to rates increases for New Zealanders and this Bill clearly demonstrates that drive.

“We are committed to refocusing councils on delivering core services, keeping rates down for ratepayers, and putting more money back into Kiwi pockets.

“Nice-to-haves should never come at the expense of delivering the basics and the days of double-digit yearly rates increases are coming to an end.”

Councils will be required to consider the cap range from 1 July 2027 when preparing their long-term plans, and the rates caps will take full effect from 1 July 2029.

The Finance and Expenditure Committee will now consider the Bill.