Responding to National’s announcement that it will redirect International Visitor Levy revenue to councils rather than introduce a bed tax, Taxpayers’ Union spokesperson Tory Relf said:

“National has shown what we have been saying all along: councils do not need a bed tax or a rates hike to deal with the costs of tourism.

“There is already a tax specifically charged to international visitors. Using that revenue in the communities hosting them makes far more sense than slapping a new tax on accommodation and catching Kiwi families in the crossfire.

“But if National is going to hand councils another $385 million, there is even less excuse for waiting until 2029 to cap rates. Give councils the funding to manage tourism, then cap rates now.”

New Taxpayers’ Union analysis shows the average household could save around $391 a year under the Government’s rates cap, more than eleven times the $34 claimed by Local Government New Zealand.

Taxpayers’ Union Head of Policy James Ross said:

“LGNZ told ratepayers a rates cap would save them just $34 a year. We’ve run the numbers ourselves and, based on average rates increases over the last decade, the saving would be closer to $391 a year.

“Rates have risen by an average 6.5 percent a year over the past decade. If that continued, a four-percent cap would save the average household $2,736 over seven years.

“Even the Government’s much more conservative modelling puts the average saving at $134 a year. However you cut it, LGNZ’s $34 figure is bogus.

“We’ve published our workings for everyone to see. If LGNZ still stands by its $34 claim, it should stop hiding its numbers and show us how it got there.”

Responding to today’s announcement of rates cap legislation, Taxpayers’ Union spokesman James Ross said the next step is stopping council waste at the source.

“Capping rates is a major victory for ratepayers nationwide, who cannot afford another term of 34 percent rates hikes. But limiting how much councils can charge is only half the battle.”

“A rates cap forces councils to make choices. Now the Government needs to make sure the axe falls on the nice-to-haves, not roads, pipes and rubbish.”

“Asking councils politely to just focus on doing the basics well is meaningless while the law still gives them the green-light to do almost anything. The next step has to be removing the power of general competence.”

Section 12(2) of the Local Government Act 2002 gives councils ‘full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction.’ This is known as the power of general competence.

The Taxpayers’ Union is celebrating a major policy victory after the Government announced council rates increases will be capped from 1 July 2029.

Taxpayers’ Union spokesperson Tory Relf said:

“This is a huge win for ratepayers. More than 31,000 New Zealanders backed our Cap Rates Now campaign, and the Government has listened.”

“We took that message around the country, from a billboard truck outside the LGNZ conference to handing out ‘Cap Rates Now’ trucker caps at Fieldays. We’re delighted Local Government Minister Simon Watts has delivered, minus the ‘now’ part.”

“The policy design is not perfect, but a rates cap in place before next year’s Long-Term Plan process would be far better than waiting three years for a better one. Delaying until 2029 simply gives councils more time to front-load rates hikes before the cap bites.”

“Minister Watts has accepted the case for a rates cap. Now he needs to make sure it is in place before councils start setting their next Long-Term Plans.”

The 2026 Rates Dashboard compiles the average rates increase for each of the territorial and unitary councils across New Zealand, allowing ratepayers to compare their council with others. This year’s Rates Dashboard includes a “total cost increase” that takes into account the councils where Local Water Done Well water delivery plans reform come into effect on 1 July 2026.

👇👇👇 See how your council compares 👇👇👇

Responding to reports that Waitaki District Council is investigating options such as reduced penalties and charity for ratepayers struggling with the council’s 16.9 percent rates rise, Taxpayers’ Union spokesman Josh Van Veen, said:

“Waitaki ratepayers will be feeling insulted by this token gesture.”

“Despite overwhelming opposition from the community, the Council pushed ahead with a massive rates increase. Now, having acknowledged that some households can’t afford to pay, Council is giving false hope to struggling ratepayers with talk of ‘relief’.”

“A council of Waitaki’s size should not be costing $1,604.18 per household in staffing costs. The only real relief would be for Waitaki District Council to cut its bloated payroll, go back through the budget line by line, and pass the savings back to ratepayers.”

The Taxpayers’ Union says Hastings Mayor Wendy Schollum’s admission in front of a packed ratepayer meeting that she was given a “heads up” about the impact of QV changes on rates — while the Council kept the information from the public until just two days before submissions closed — is extraordinary.

“Last night, tensions ran high, and rightly so,” said Jordan Williams, Taxpayers’ Union Executive Director.

“We have never seen such a material piece of information for an Annual Plan hidden from the public. If legally challenged, the Council would almost certainly be forced to reconsult. The cost of that alone could be hundreds of thousands of dollars — all because officials and the Mayor failed to disclose information ratepayers had every right to know.”

“At the very time businesses are closing in Hastings, commercial ratepayers are being hit with rates hikes of up to 85 percent. Now we know the Mayor had been warned about the shift in advance, but ratepayers were kept in the dark.”

The issue stems from property revaluations used to calculate rates. Because commercial property values have increased more than residential values on paper, the share of the rates burden falling on commercial and industrial ratepayers has surged.

Hastings District Council already has the highest commercial differential of any comparable council in New Zealand, meaning a commercial property pays three times more than an otherwise identical residential property simply because of its use.

Just two days before submissions on the Draft Annual Plan closed, it became clear that CBD rates would rise by 27 percent and other commercial rates by 34 percent, with some businesses facing much higher increases.

“Not only did the Mayor and council bosses know Hastings businesses were about to be absolutely smashed, they chose to keep it secret,” said Williams.

“At the meeting, the Council’s deputy CEO initially claimed he had kept the information from elected officials — but then the Mayor admitted she had been told. They cannot even get their story straight on the cover-up.”

“If the Council wants to avoid expensive litigation, it probably has no choice but to reopen consultation.”

Rates showdown tonight: Hastings businesses face rates increases of up to 85 percent

The Taxpayers' Union says small businesses and jobs are at immediate risk in Hastings following the District Council's new revelations that commercial rates are going up next month by an average of 27 percent in the Hastings CBD and a massive 34 percent elsewhere in the region. Industrial property rates are reported to be soaring by 24 percent.

Ahead of a crisis meeting scheduled for tonight, organised by the Hastings and Havelock North Business Associations, the Taxpayers’ Union can reveal that some small businesses face rates increases of up to 85 percent.

The unprecedented one-year rates hikes are being driven both by Council decisions and new valuations from Quotable Value (QV).

Taxpayers’ Union Executive Director Jordan Williams says this is the worst possible time for any rates increases, let alone of the magnitude revealed by council data only yesterday.

“Combined with the war in Iran, oil shock, global downturn, returning inflation and rising interest rates, the massive rates hikes mean dozens of Hastings businesses face the same fate as Wattie’s and McCain’s, potentially costing Hawke’s Bay hundreds of jobs,” Mr Williams said.

“When did Council chief executive To’osavili Nigel Bickle and his deputy Bruce Allan know the rates proposal in the draft annual plan would push up CBD rates by 27 percent and other commercial rates by 34 percent? Why were these impacts not put before ratepayers before now? Ratepayers expect consultation, not nasty shocks on the eve of their new rates bill."

“And when did they tell new Mayor Wendy Schollum and her councillors?"

“Who will take responsibility for this fiasco?"

“Mayor Wendy Schollum recently called on Parliament to inquire into why rising costs were forcing Hastings’ major employers to close. She doesn't need an inquiry, she needs a mirror. Skyrocketing rates are driving both the cost of living crisis and businesses out of Hastings."

“The Taxpayers' Union is hopeful Mayor Schollum fronts up at tonight’s meeting and announces how she is going to stop Hawke’s Bay businesses paying any more than the 8.9 percent rates increase she advertised and which businesses have budgeted for."

“Ratepayers need transparency about what she knew and when, and must hold her and her councillors to account.”

Tonight's Emergency Ratepayer Meeting is from 5:30pm in The Shakespeare Room at ToiToi Centre.

The Taxpayers’ Union is slamming the Government’s decision to hand councils $400 million in “growth incentives” while walking slow to bring council costs under control by capping rates now.

Taxpayers’ Union spokesperson Tory Relf said:

“Local Government Minister Simon Watts has let ratepayers down. Handing councils $400 million in additional revenue without bringing forward a rates cap means councils are under even less pressure to rein in their costs.”

“Town Halls don’t have a revenue problem, they have a spending problem. Giving councils a bailout in the form of a new taxpayer-funded subsidy, no matter how good the intent, is akin to funding more beer for an alcoholic."

"Giving councils more revenue before forcing discipline is the wrong way around."

“A rates cap should have come first. Without it, extra revenue will simply give councils more room to avoid the hard decisions."

“Simon Watts should be protecting ratepayers from runaway councils, not handing councils $400 million and hoping they suddenly discover restraint.”

Responding to reports that Waitaki District Council considered but rejected consulting ratepayers on a 9 percent rates increase option, instead only presenting options of 19-45 percent, Taxpayers’ Union spokesperson Tory Relf said:

“Waitaki ratepayers have already been smashed with a 34.8 percent rates hike over the last three years, now they are being asked to choose between increases of 19, 27, or 45 percent. While budget adjustments are unavoidable in Waitaki in order to fulfil their water delivery requirements, efficiencies could still be found elsewhere. It’s not mandated that they have to increase rates, it’s mandated that they have to invest more in their water infrastructure."

"Even so, the real scandal is that Council apparently knew there was still a lower option and chose not to put it to the public. According to unconfirmed minutes reported by the Otago Daily Times, the reason was that ‘the 9% increase might be more popular with the community but would leave less financial flexibility’. In other words: don’t ask ratepayers, because they might pick the cheaper option.”

“Minister Watts cannot keep pretending this is a problem for 2029. He has created exactly the wrong incentive. By announcing a rates cap but delaying it until 2029, he has effectively told councils to get their hikes in now. If the Minister is serious about protecting ratepayers, he should bring the cap forward and stop councils using the next three years as a last-chance spending spree."

“The Taxpayers’ Union will be writing to Minister Watts inviting him onto Taxpayer Talk to defend why ratepayers should wait until 2029 while councils like Waitaki race to lock in double-digit hikes.”