Keeping rates affordable

New Zealanders deserve stability and certainty when it comes to rates increases. Rates bills have been rising faster than many households can afford, with some communities experiencing double-digit increases year after year. We are committed to keeping rates affordable, refocusing councils on delivering core services, and ensuring more money stays in Kiwi pockets.

The Rates Capping Bill, which has now passed its first reading in Parliament, will help put an end to excessive and unexpected rates increases by requiring councils to keep annual rates increases within a target range of 2-4%. This approach balances the need for councils to continue delivering essential services while providing ratepayers with greater certainty and protection from unaffordable rates rises.

The Bill includes a minimum level of rates increase to support councils to continue delivering essential services and investing in infrastructure. It provides exemptions in exceptional circumstances where additional rates revenue is needed to recover from events such as natural disasters or where councils can demonstrate prudent financial management. However, councils will be required to consult their communities. At the same time, National will set up an independent regulator which will monitor compliance, assess exemption applications, and advise on future target ranges.

National believes that 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 under a re-elected National Government.