Legislation to halt excessive rates increases and ensure councils\u2019 focus to be on fixing the basics and keeping rates affordable has passed its first reading in Parliament today, Local Government Minister Simon Watts says.<\/p>\n
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.<\/p>\n
\u201cSteep and unexpected rates increases add pressure to household budgets at a time many New Zealanders are already feeling the squeeze,\u201d Mr Watts says.<\/p>\n
\u201cThis Government is serious about bringing stability and certainty to rates increases for New Zealanders and this Bill clearly demonstrates that drive.<\/p>\n
\u201cWe are committed to refocusing councils on delivering core services, keeping rates down for ratepayers, and putting more money back into Kiwi pockets.<\/p>\n
\u201cNice-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.\u201d<\/p>\n
Councils will be required to consider the cap range from 1 July 2027 when preparing their long-term plans, and the rates caps will take full effect from 1 July 2029.<\/p>\n
The Finance and Expenditure Committee will now consider the Bill.<\/p>\n
Editors\u2019 notes:<\/p>\n
Under the proposed rates capping system:<\/p>\n
Annual rates increases will remain within an initial target range of 2 to 4 per cent.
\nThe target range will be reviewed every six years and updated where necessary to reflect costs outside councils’ control.
\nThe target range includes a minimum level of rates increase to support councils to continue delivering essential services and investing in infrastructure.
\nTwo types of time-bound exemptions will be available:<\/p>\n
Exceptional circumstances: where additional rates revenue is needed to recover from events such as natural disasters that go beyond what a council can reasonably be expected to plan for.
\nPrudent financial management exemption: where a council can demonstrate prudent financial management and a justified need to operate above or below the target range. Councils will be required to consult their communities before setting rates.<\/p>\n
Water services are excluded from the rates capping system and will continue to be regulated separately.
\nThe legislation also establishes an independent regulator responsible for:
\nMonitoring compliance with the rates capping system.
\nAssessing exemption applications.
\nAdvising on future target ranges.
\nSupporting councils through implementation and transition.
\nProviding guidance to councils and reporting on how the system is operating.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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