New Zealand to Replace Development Contributions with Nationwide Levy System

The New Zealand Government has confirmed a new development levies framework designed to better fund infrastructure for housing and urban growth. The reform, announced by Housing Minister Chris Bishop, Local Government Minister Simon Watts and Commerce Minister Cameron Brewer, will replace the current development contributions regime with levies that apply to all Crown agencies, developers and private projects. Councils will be required to create separate levy areas where infrastructure costs differ, while the Commerce Commission will regulate the system, setting calculation methods, disclosure rules and enforcement. A $30 million budget will establish the regulatory function between 2026 and 2030. The Local Government (Infrastructure Funding) Amendment Bill will be introduced in early 2027, giving councils and developers a clear, nationally consistent framework to recover infrastructure costs and reduce the burden on existing ratepayers.