New Development Levies to Be Enabled for Councils in 2029

The New Zealand government has confirmed that, starting in 2029, local councils will be permitted to impose development levies on builders and developers. The decision follows a series of consultations aimed at clarifying the legal framework that currently limits councils’ ability to levy fees for infrastructure and planning costs. Under the new arrangement, councils will be able to set and collect levies that reflect the impact of new projects on local services such as roads, schools, and parks. The move is expected to give municipalities a clearer revenue stream to fund the infrastructure required by growing communities. Developers will need to factor these potential costs into project budgets, while councils will gain a tool to balance growth with local capacity.