Government announcement on rates increase targets

Market Announcement 3 December 2025 Government announcement on rates increase targets On 1 December 2025 the New Zealand Government announced its decision to introduce a rates target model that will see local councils, including Auckland Council, required to operate within a proposed target annual rates increase range of 2 to 4 per cent from 1 July 2029. The model will allow for exemptions in extreme circumstances. Government guidance and monitoring will also apply over a transition period. A letter from the Minister of Local Government setting out this decision and the process for consultation with councils is attached. Auckland Council is currently working with the government to understand the implications of the decision and how this might be applied to Auckland. In 2024/2025, rates revenue comprised 34.8 percent of the $8 billion total revenue for the Auckland Council group. Auckland Council’s current Long-term Plan 2024-2034 includes planned rates increases of 3.5 per cent per annum for the average value residential property from 1 July 2027, which is within the proposed target range. ENDS For further information please contact: Vanessa Feaver Senior Specialist Corporate Communications and Media Mobile: +64 27 221 5232 Email: vanessa.feaver@aucklandcouncil.govt.nz