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A bill to limit rates increases and keep council rates affordable has passed its first reading in parliament this week.
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, says Local Government Minister Simon Watts.
“Steep and unexpected rates increases add pressure to household budgets at a time many New Zealanders are already feeling the squeeze,” Watts says.
Watts says the government is committed to refocusing councils on delivering core services, keeping rates down for ratepayers, and putting 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.”
The proposed system would allow exemptions, such as recovery from a natural disaster, or where there is a good financial reason to move outside the target range.
The government says councils will be required to consider the cap range from July 1 2027 when preparing their long-term plans, and the rates caps will take full effect from July 1 2029.
