A new Government plan to cap council rates rises could help ease bill pressure for Hibiscus Coast households.

Local Government Minister Simon Watts says ratepayers need councils to live within their means.

“Rates are taking up more of household bills, and some communities have faced double-digit increases year after year. This is unsustainable and is only adding to the cost of living for many Kiwis,” Simon Watts says.

The model sets a target range for annual rates increases of 2 to 4 per cent per capita, per year.

The lower end is intended to keep essential services running, while the upper end is designed to keep rate rises affordable.

The cap would apply to all forms of rates, including general rates, targeted rates and uniform annual charges, but not to water charges or other fees.

Councils wanting to move outside the upper limit would need approval from a central regulator.

Permission would be reserved for extreme situations such as natural disasters, or where councils can justify catching up on past underinvestment and show how they will move back to the target range.

A transition period starts on Friday, January 1, 2027, when councils must factor the cap into long-term plans and report on key financial measures.

The full regulatory model is due to be in place by Sunday, July 1, 2029, with officials watching rate rises closely and urging councils, including Auckland Council, not to wait before controlling increases for their communities.

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