Simon Watts

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.

The New Zealand Government has accepted a Commerce Commission recommendation to impose a ten‑year performance‑requirement regulation on Tiaki Wai, the region’s water services provider. This is the first time the tool has been used on a water company. Local Government Minister Simon Watts said the move is needed because decades of underinvestment have left Wellington’s water network below standard, and the cost of repairs is now falling on households. Commerce and Consumer Affairs Minister Cameron Brewer added that the Commission will set binding performance targets, focusing on critical high‑risk projects and the $25 billion investment planned over the next 30 years. The regulation gives the regulator real teeth to enforce accountability and ensure that money goes into pipes and treatment plants.

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.