Rates Cap
Waipā District Council is already working towards striking rates within new Government guidelines to be introduced in 2029.
Simon Watts
Local Government Minister Simon Watts announced on Monday the Government has agreed to progress a rates cap.
Under the plan, rate increases would be limited to a maximum of four per cent.
“Rates are taking up more of household bills, and some communities have faced double-digit increases year after year. This is unsustainable and is only adding to the cost of living for many Kiwis.
Councils would not be permitted to increase rates beyond the upper end of the range, unless they had permission from a regulator appointed by central government.
Mike Pettit
Waipā mayor Mike Pettit was not surprised to hear of the cap but was surprised to hear how it would be implemented.
The cap will apply to general and targeted rates, and uniform annual charges but exclude water charges and other non-rates revenue.
“We have got some time to implement this,” he said. “In 2029/30 we are sitting at just over four per cent which we will need to bring down slightly and in the current Long Term Plan sitting at 2.2 per cent for the remaining four years.”
