EXPOSED: 2026 Rates Dashboard reveals water reform 9.0% rates sting

EXPOSED: 2026 Rates Dashboard reveals water reform 9.0% rates sting

The Taxpayers’ Union has launched the 2026 edition of its national Rates Dashboard at RatesDashboard.nz

The Dashboard shows the while average proposed rates increase for 2026/27 is 6.9 percent — more than twice the current inflation rate of 3.1 percent – once new water charges are included, it's the equivalent to 9.0 percent — nearly three times inflation.

The discrepancy is due to ratepayers in fourteen council districts facing new water charges under the Government's Local Water Done Well policy.

Across the fourteen councils transitioning to new water delivery arrangements from 1 July, the average headline rates increase is 6.14 percent. But once water charges are included, the average total cost increase jumps to 15.88 percent.

This year’s Rates Dashboard includes a new “total cost increase” measure, which accounts for councils shifting water costs out of traditional rates bills and into separate charges under Local Water Done Well.

Taxpayers’ Union spokesperson Jordan Williams said:

“Some councils are asking ratepayers to look at the headline rates increase and ignore the water bill arriving through the side door.

“This is the oldest trick in the book: take part of the cost off the rates bill, put it on a separate invoice, and hope no one notices the total has gone up.

“The national picture is bad enough. Rates are proposed to rise by 6.9 percent when inflation is just 3.1 percent. But once the first wave of Local Water Done Well councils is included, the average total cost increase facing ratepayers nationwide rises to 9.0 percent — nearly three times inflation.

“For the fourteen councils affected by water changes this year, the bait-and-switch is even clearer. The average headline rates increase is 6.14 percent, but the real cost increase once water is included is 15.88 percent.

“Whether a charge appears on a rates bill or a separate water invoice, residents still have to pay it. Calling it something else does not make it cheaper.”

"The Government needs to take some of the blame here. Because Simon Watts has dragged the chain on rates capping, some councils have been able to shift water out of the council, but keep the associated rates income and effectively see their districts pay twice for water. As we've said all along, councils should be forced to reduce their rates at the same time the water services are shifted over to the new water entities."

The Dashboard shows some of the largest estimated total cost increases are in:

• Hutt City Council: 59.79%
• Upper Hutt City Council: 32.33%
• Kaikōura District Council: 26.01%
• Selwyn District Council: 21.15%
• Clutha District Council: 20.54%
• Waitomo District Council: 18.26%
• Waitaki District Council: 17.00%

Mr Williams said the real concern is the lack of transparency.

“Estimates calculated from publicly disclosed data on last year’s water costs and councils’ self-reported average bills are a start, but it shouldn’t take an accountant to work out what councils are lining up for residents."

“Local Water Done Well cannot become a convenient way for councils to disguise the real cost burden facing households and businesses."

“When the average headline rates increase is already more than twice inflation, and the total cost facing ratepayers is nearly three times inflation, ratepayers cannot afford to wait years for the Government to cap rates."

“Ratepayers deserve to know the full cost of their council — not just the tidied-up version buried in consultation documents.”

The 2026 New Zealand Rates Dashboard is available at RatesDashboard.nz, including an explanation of the methodology.