The Government has proposed a rates cap to limit how much councils can increase charges, with a 2–4 percent target and enforcement not starting until 2029. The New Zealand Taxpayers’ Union supports the idea in principle but warns the current model is too weak and risks failing to protect households from rising costs.
In our submission, we argued the cap must apply per household—not per capita—to reflect real affordability. We called for CPI to anchor increases, closing loopholes that allow councils to shift costs into fees, and requiring binding referenda for any breaches to ensure democratic accountability. We also pushed for earlier implementation, warning that delays encourage councils to hike rates now before limits take effect.
Rates have surged far faster than inflation, driving the cost-of-living crisis and rewarding unchecked council spending. Without strong limits, households remain exposed to rising costs, weak accountability, and a system where rates increasingly resemble a wealth tax rather than a fair charge for services.
