Auckland is the fastest growing region in the country. In the past five years, our population has grown by more than the entire population of Tauranga, and is expected to reach 2.2 million in the next three decades.
More people means more housing is needed, and it needs to be affordable. We need new ways to pay for this, in addition to development contributions and without large rates increases for all ratepayers.
Our proposal: targeted rates on new developments
We propose changing our policy to allow us to use targeted rates on new developments as well as development contributions to pay for new infrastructure.
A targeted rate would reduce reliance on general ratepayers and encourage developers to convert land into homes faster. This would discourage developers from sitting on empty land while its value increases – a practice called land banking.
Changing our policy means we can implement targeted rates when appropriate following consultation.
If we don’t go ahead with this change we would have to continue to rely on growth charges or ask central government for new ones to fund the infrastructure.