On 1 May 2026, Property Council submitted on Tauranga City Council’s Draft Development Contributions Policy 2026/27.
Why this matters to our members
The Draft Development Contributions Policy 2026/27 is proposing a 7.3% increase to citywide development contributions.
Our view
Property Council opposes the 7.3% increase to citywide development contributions, as this sits within wider cost pressures Tauranga developers are facing. Development contributions for a standard three-bedroom dwelling have risen from $12,200 to almost $43,000 since the 2021–2031 Long Term Plan, alongside rising construction, financing, and holding costs. Property Council is concerned these increases will undermine development feasibility and housing delivery, and recommends community infrastructure instead be funded through alternative mechanisms such as targeted rates or user-pays models.
At a high level, we recommended Council:
- Not adopt the proposed 7.3% increase in city-wide development contributions;
- Discontinue the use of city-wide development contributions to fund community infrastructure;
- Make use of alternative funding models for investment in community infrastructure;
- Retain a clear and conventional definition of “bedroom”; and
- Remove the application of development contributions to unconsented or exempt secondary dwellings, or at a minimum, clearly define a prospective trigger for liability.