Local Councils Gain Power to Levy Developers for Infrastructure from 2029

The New Plan

New Zealand local councils will get the power to charge property developers a new levy starting in the year 2029. The government announced this policy change to help pay for community building work and services.

Background and Costs

Ratepayers across the country have paid an enormous eleven billion dollars for infrastructure costs so far. Leaders hope this revamped charge system will shift those heavy expenses away from everyday residents.

Reactions

Both local councils and property developers welcomed the upcoming change, with many stating the update cannot come soon enough. Meanwhile, Bishop defended the fast-track charges against critics, stating the fees are not a new tax. In a separate development, the Commerce Commission will oversee development charges for Hamilton.