Councils around New Zealand have recently made key decisions on their Annual Plans, Development Contribution fees, and water services. Property Council has been actively engaging in these local government processes, and we’ve outlined the latest outcomes below.
Auckland Council Annual Plan 2026/27
| Property Council recommendation | Auckland Council Decision | Outcome |
|---|---|---|
|
Limit the average business rates increase to 8.22 per cent. |
Rates for an average value business property will increase by 10.47%. |
Loss. |
|
Investigate alternative funding and financing tools. |
Annual average rates increase is 7.9%. Council is working with Government on new funding tools under the regional deal. |
Win. |
|
Collaborate with council and property sector to enable growth. |
Auckland Council is engaging with Property Council’s Auckland Regional Committee on city centre revitalisation, transport, brownfield development and improving consenting. |
Win. |
Auckland Council Development Contribution Policy and Watercare Charges
- Auckland Council increased its Development Contributions by 2%, in accordance with Auckland Council’s Development Contributions Policy 2025 (adopted in mid-2025). The changes took effect on 1 July 2026.
- Watercare increased its water and wastewater supply charges by 7.2% and Infrastructure Growth Charges (IGC) by 20%. There was no consultation process on the Watercare Charter. The changes took effect on 1 July 2026.
Hamilton City Council Annual Plan 2026 and Financial Contributions Policy
| Property Council recommendation | Hamilton City Council Decision | Outcome |
|---|---|---|
|
We did not support recovering costs from new development through financial contributions. |
Hamilton City Council did not adopt their financial contribution policy. |
Win. |
|
There was no consultation process on the Annual Plan. |
Hamilton City Council confirmed an average rates increase of 6.9%. |
N/A |
IAWAI Strategy 2026
| Property Council recommendation | IAWAI Decision | Outcome |
|---|---|---|
|
We did not support the new Water Growth Charges and asked for delayed implementation of water growth charges until 1 July 2027. |
Residential growth charge for drinking water and wastewater confirmed as $500 per dwelling. Non-residential Growth Charge yet to be confirmed in 2027. |
Partial win. |
|
Growth-related water infrastructure should continue to be funded through existing and transparent methods like development contribution policies. |
There will be a new water growth charge of $500 for a new dwelling and $250 per year for a new secondary minor dwelling, applied for 25 years from when the building is complete. |
Loss. |
|
Adopting a demand-based charging framework that allows the actual water demand of non-residential developments to be assessed using water meters that indicate actual water usage. |
Industrial and commercial water users in Hamilton will continue to receive water meter bills. |
Win. |
|
IAWAI establishes a formal framework for innovation and developer partnerships, which allows for alternative water systems to reduce demand-based charges. |
Not discussed at this stage. |
Loss. |
Tauranga City Council Annual Plan and Development Contributions Policy 2026/27
| Property Council recommendation | Tauranga City Council Decision | Outcome |
|---|---|---|
|
Property Council opposed the 7.3% increase to citywide development contributions. |
Tauranga City Council adopted the 7.3% increase. |
Loss. |
|
Retain a clear and conventional definition of “bedroom.” |
Tauranga City Council opted to further refine the definition of a bedroom, including secondary living rooms. |
Loss. |
|
There was no consultation process on the Annual Plan. |
Tauranga City Council confirmed an average rates increase of 6.9%. |
N/A |
Wellington City Council Annual Plan 2026/27
| Property Council recommendation | Wellington City Council Decision | Outcome |
|---|---|---|
|
In the next LTP cycle, commit to a clear, staged approach to reducing the business differential over time. |
Wellington City Council will consult on a reduction in the differential of 3:0 over six years in the next LTP cycle. |
Win. |
|
Remove the vacant site and derelict buildings differential. |
Wellington City Council will be looking at further refining the definition and expanding the zone applicable to this differential in the next LTP cycle. |
Loss. |
|
Reduce the downtown targeted rate and provide clear and transparent reporting on the allocation of the downtown
targeted rate. |
Wellington City Council are not looking at reducing this rate. They have included a report detailing what the rate looks to fund and the return on investment. |
Partial win. |
Wellington City Council Development Contributions Policy and Tiaki Wai strategy
- Wellington City Council has increased development contribution charges by 2% in accordance with the Local Government Act 2002 (PPI) which take effect from 30 June 2026.
- Under Tiaki Wai, the average water rates bill will increase by 13.3%.
Christchurch City Council Annual Plan 2026/27
| Property Council recommendation | Christchurch City Council Decision | Outcome |
|---|---|---|
|
Align proposed average rates increase with LTP forecast (5.8%). |
Average rates increase of 7.83%, this is lower than proposed increase of 7.96%. |
Partial win. |
|
Reduce operational expenditure to LTP forecast levels. |
Annual budget for operational expenditure is $109.2 mil higher than LTP forecast. |
Loss. |
|
To restore iconic buildings, investigate alternative funding mechanisms and avoid burdening ratepayers. |
Allocated funds for restoration of iconic buildings, conditional on contributions from funding partners. |
Partial win. |
Queenstown Lakes District Council Annual Plan 2026/27
| Property Council recommendation | QLD Council Decision | Outcome |
|---|---|---|
|
Reconsider scale of proposed rates increases. |
Average rates increase of 9.9%, this is lower than proposed increase of 11.7%.
Average rates increase for Queenstown and Arrowtown businesses of 11.4% and 14.1% respectively. This is lower than the proposed increases of 12.8% and 14.9%. |
Win. |
|
Reduce the scale of future rates increases through management of capital and operating expenditure. |
Annual budget for capital expenditure reduced by $36.8 mil. |
Win. |
|
Consult on Wānaka-Upper Clutha Community Board priority projects as part of next year’s LTP process. |
Funding approved for the priority projects in the Annual Plan 2026/27. |
Loss. |
|
Accept inflationary adjustment to development contributions, but provide more justification. |
Increase development contributions by 3.77%. This is reflective of charges for 2025/26 and 2026/27 policies. |
Partial win. |
Dunedin City Council Annual Plan 2026/27
| Property Council recommendation | Dunedin City Council Decision | Outcome |
|---|---|---|
|
Reduce the scale of future rates increases through management of capital and operating expenditure. |
Average rates increase is 8.9%, this is lower than proposed increase of 10.5%. This includes water and non-water rates.
Annual capital expenditure budget is $210.2 mil ($29.7 mil less than proposed). |
Win. |
|
Remove the business rating differential for Three Waters utilities rather than creating a new differential or applying the business differential. |
Apply a new differential of 1.34 for Three Waters utilities, lower than the business rating differential of 2.50. |
Loss. |
|
Avoid using ratepayer funds to repay Stadium debts. |
Annual budget includes an additional Stadium funding of $1.25 mil from rates, for maintenance and debt repayment. |
Loss. |
Selwyn District Council Annual Plan 2026/27
| Property Council recommendation | Selwyn District Council Decision | Outcome |
|---|---|---|
|
Out of 3 options, proceed with 5.4% non-water rates increase to limit burden on ratepayers while maintaining levels of service. |
Average rates increase of 4.5% for non-water rates (8.8% increase including water rates). Achieved by rephasing capital programmes and emphasising cost recovery, rather than reducing core services. |
Win. |
|
Reduce the scale of future rates increases through careful management of capital and operating expenditure. |
Annual budget for capital expenditure budget is $86.7 ($29.3 mil less than LTP forecast).
Annual budget for operational expenditure is $195.9 mil ($8.7 mil more than LTP forecast). |
Partial win. |
