The Taxpayers’ Union has released its 2026 Rates Dashboard, revealing that ratepayers across New Zealand face an average rates increase of 6.9 percent for 2026/27, more than double the current inflation rate of 3.1 percent. However, when new water charges are included under the Government’s Local Water Done Well policy, the equivalent total cost increase rises to 9.0 percent, nearly three times the inflation rate.
Fourteen councils are transitioning to new water delivery arrangements from 1 July 2026, with water costs being shifted from traditional rates bills to separate charges. In these fourteen council districts, the average headline rates increase is 6.14 percent, but once water charges are included, the total cost increase jumps to 15.88 percent. The largest estimated total cost increases are in Hutt City Council at 59.79 percent, Upper Hutt City Council at 32.33 percent, and Kaikōura District Council at 26.01 percent.
The Taxpayers’ Union has criticised councils for what it calls a lack of transparency, arguing that ratepayers are being asked to focus on headline rates increases while ignoring separate water bills. The organisation’s spokesperson, Jordan Williams, stated that whether a charge appears on a rates bill or a separate water invoice, residents still have to pay it. He also criticised the Government for delays in implementing rates capping, suggesting that some councils have shifted water services out but retained the associated rates income, effectively making districts pay twice for water.
The Rates Dashboard includes a new total cost increase measure this year to account for councils shifting water costs out of traditional rates bills. Williams emphasised that ratepayers deserve to know the full cost of their council and cannot afford to wait years for the Government to cap rates, particularly when total costs are rising at nearly three times the rate of inflation.
Read the full article at Taxpayers’ Union – News →
Source: Taxpayers’ Union – News. This summary was published by Input Ltd via amalgamation.nz, New Zealand’s central resource for local government amalgamation news and council merger updates.
