Join the campaign to Cap Rates Now

We are officially launching our "Cap Rates Now!" campaign, to rein in New Zealand's out-of-control councils.

We're using this week's National Fieldays to call on Local Government Minister Simon Watts to introduce Australian and UK-style rates caps to limit annual rate increases to inflation.

We're demanding a rates cap - now! We need your support – sign the petition ✍️

Across the country, the story is the same: double-digit rate hikes, councils are driving up the costs of living.

Meanwhile, ballooning staff numbers and vanity project spending see councils delivering fewer core services.

Local Government New Zealand (the lobbyists for council bureaucrats) are in Simon Watts' ear. They want to keep councils unrestrained.

I need you to take 20 seconds today to sign the petition.

With Auckland’s new property values out yesterday, many homeowners are about to be slapped with massive rate hikes. Napier ratepayers are facing a hike of 20 percent, along with Gore, Upper Hutt, Hastings... The list goes on and on. 

It’s time to put a lid on it: Cap Rates Now!

Rates cap legislation would limit annual rates increases to inflation – unless a council can get approval from local ratepayers through a local referendum.

💥 Since 2022, average council rates have gone up 34% in New Zealand, compared to 14% in the UK and just 8% in Australia.

💥 A majority of Kiwis want the choice – polling shows that nearly two-thirds support referenda for big rate hikes.

💥 Meanwhile, council spending keeps ballooning – but not on core infrastructure. Our research shows that the money is going on bloated bureaucracies (staff costs) and non-core (i.e. vanity) projects.

If you agree, enough is enough, sign the Rates Cap Now petition at RatesCapNow.nz

Under our proposal, councils can still fund important projects – they’ll just have to justify the cost and get community backing. It’s about accountability, transparency, and putting ratepayers first.

The campaign is about protecting households, restoring trust in local government, and stopping councils from treating ratepayers like bottomless wallets.

If councils really need to spend more, they can just ask. That’s democracy.

But without a cap, nothing will change. The bills will keep piling up.

So let's build up the pressure . Let’s Cap Rates Now!

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Q&A - RATES CAPPING: PROTECTING HOUSEHOLDS AND IMPROVING LOCAL GOVERNMENT ACCOUNTABILITY

The Taxpayers’ Union is advocating for the introduction of rates capping in order to protect households from excessive local government rate hikes and to improve local government affordability. This Q&A outlines the rationale behind rates capping and the benefits it offers to ratepayers and communities across the country.

What is rates capping?
Rates capping limits the annual increase in local government rates to a fixed percentage (usually tied to inflation or a combination of inflation and population growth) unless a council seeks approval from its community to exceed the cap.

What is the Taxpayers’ Union proposing?
The Taxpayers’ Union is calling on the New Zealand Government to introduce legislation that sets a default cap on annual council rate increases linked to inflation and population growth, with any proposed increases above the cap requiring direct approval through local referenda.

Why is rates capping necessary?
Over the past decade, local government rates have been a primary driver of CPI inflation and the cost of living crisis. That has placed a growing burden on households and businesses. Many councils have failed to deliver core services efficiently while expanding into areas beyond their core responsibilities. Rates capping helps rein in unsustainable spending and forces councils to focus on core, essential services.

How does rates capping benefit ratepayers?
Rates capping provides cost certainty for households, especially those on fixed or low incomes. It forces councils to prioritise spending, seek efficiencies, and engage more transparently with their communities when proposing large-scale projects or expansions beyond core services.

Does rates capping compromise service delivery?
No. Rates capping does not stop councils from raising revenue for important projects – it simply requires them to justify those increases publicly and gain community support. This leads to better scrutiny and more democratic accountability, not lower quality services.

How does New Zealand compare internationally?
Jurisdictions such as England and New South Wales have successfully implemented rates caps for decades. These policies have limited rate increases while maintaining service quality and driving efficiency in local government operations.

What are the economic benefits of capping rates?
By keeping cost growth predictable, rates capping reduces pressure on household budgets and increases disposable income. It also enhances the competitiveness of local economies by making it easier for businesses to plan and invest without being surprised by large rate hikes.

Is this policy relevant in the current economic climate?
Yes. With cost-of-living pressures intensifying and many households struggling to make ends meet, rates capping is a timely and necessary reform. It ensures local councils cannot continue to shift the burden of their own inefficiency onto ratepayers.

What if there is an emergency?
In the event of an emergency, such as a natural disaster or critical infrastructure failure, councils would still be able to propose rate increases above the cap. However, any increase beyond the cap would still require approval through a local referendum. This ensures transparency and maintains democratic accountability, even in extraordinary circumstances.