New Zealand Government to Expand Infrastructure Funding Tools for Fast‑Track Developments

The New Zealand Government announced a package of changes aimed at ensuring local councils can recover the infrastructure costs generated by Fast‑Track developments. Housing and Infrastructure Minister Chris Bishop and Local Government Minister Simon Watts said the reforms will replace the current Development Contributions regime with a new Development Levies system, expected to be operational from 2029. In the meantime, amendments to the Local Government Act 2002 will give councils greater flexibility to adjust Development Contribution policies after a Fast‑Track application is lodged, and to recover costs that cross council boundaries. The changes are designed to address situations where Fast‑Track projects proceed ahead of infrastructure planning or rely on network capacity intended for live‑zoned land. Since the Fast‑Track Approvals Act 2024 was enacted, 31 projects across housing, infrastructure, mining, aquaculture and renewable energy have been approved, representing billions in investment and tens of thousands of jobs. The government stresses that the new tools will keep infrastructure funding aligned with growth, while maintaining the effectiveness of the Fast‑Track process.