AUCKLAND — Council’s Governing Body has officially adopted the Annual Plan 2026/2027 and struck a final rates increase of 7.9 per cent for the average value residential property.
The decision locks in critical financial settings aimed at maintaining essential everyday services, driving internal efficiencies, and funding major, transformative regional infrastructure.
The agreed 7.9 per cent increase successfully holds the line against intense economic headwinds. Faced with global fuel pressures, inflation, and structural funding challenges, the council navigated an added $213 million budget risk that could have triggered a 15 per cent rates spike. Auckland Council had already committed to a $106 million savings target—larger than the entire rates revenue of 54 other councils—among other measures.
Mayor Wayne Brown says this Annual Plan reflects Auckland’s 10-year budget in the Long-term Plan, agreed to with Aucklanders.
"Thank goodness for that, this one’s been beaten to death. This is what we proposed and what a majority of the public and local boards agreed on two years ago: a zero rates rise, plus a train set. And we are managing to stick to it in this economy, in this global volatility. While times are tough, we are maintaining strict internal discipline to protect everyday services without racking up costly debt.”
Mayor Brown says the budget adopted Tuesday continues to invest in Auckland’s necessities.
“This is about investing in Auckland, and we should invest in this stunning harbour city of ours—I don’t want to end up back where it was when I took office, with crumbling pipes around the city leaking. I will not do what some other councils have done – defer costs, underfund depreciation, and pass the problem to future generations. I’m glad our plan is working, and that sensible heads around the council table have prevailed.”
“An Informetrics report for the last financial year showed that relative to incomes, Auckland was the most rates affordable city in New Zealand. My point is, we’ve done well to keep to our settings in this economy because we’ve built financial resilience into our books.”
He adds passing the buck to ratepayers later wasn’t an option.
"This means we still have hope of reaching the 3.5% average rates increases target in the LTP, which was agreed to with the public, over the next couple years. Even one per cent now would have destroyed this target, and cost households in future. I’m looking forward to getting on with implementing this budget and getting on with the LTP next year, where we will again consult with Aucklanders.”
Auckland Council Chief Executive Phil Wilson says as the council begins delivering on the plan, the community and financial prudence is front-of-mind. “We are very mindful of the cost-of-living challenges our community is facing and, therefore, delivering increased value is an absolute priority in the next 12 months and beyond.
“The council’s budget is premised on a very substantial savings target and us needing to absorb virtually all inflationary pressure. That is challenging, and further efficiencies across the council business are needed to ensure rates deliver more for Aucklanders across our investments. From public transport and local services to project delivery, we will be seeking out all opportunities to deliver increased value for rates.”
Key Highlights of the 2026/2027 Budget:
• Protecting Everyday Services: A total of $5.5 billion will be spent to deliver the frontline services Aucklanders rely on, including public transport, libraries, pools, parks, and waste collection.
• Massive Infrastructure Investment: A $3.6 billion capital investment will fund regional growth, improve community infrastructure, and build climate resilience.
• Aggressive Internal Savings: A $106 million operating savings target ensures the council delivers better value for money. This efficiency drive alone offsets what would have been an additional 3.5 per cent rates increase.
• Double-Digit Avoidance: The 7.9 per cent increase keeps Auckland well below the double-digit rates hikes seen across much of New Zealand. Following this year, council settings forecast a stabilisation back to average increases of no more than 3.5 per cent per year over the medium term.
Funding Auckland's Resilient Future
The City Rail Link (CRL) delivers region-wide economic and transport benefits that extend far beyond train users to all Auckland ratepayers. While its integration adds $235 million in operating costs to this year’s budget as completion nears, New Zealand's largest infrastructure project will double rail capacity, slash commute times—saving Henderson commuters up to 24 minutes at peak—and provide more frequent trains with seamless bus-to-train connections across the entire region.
Beyond transport, the 2026/2027 budget kicks off and progresses vital resilience projects across the council group. These include completing the Central Interceptor project to drastically reduce central city wastewater overflows, executing critical flood resilience works in Māngere and the Wairau Valley among others, and advancing waterfront and city centre regeneration projects.
The adopted Annual Plan and rates settings will formally come into effect on 1 July 2026. The full Annual Plan 2026/2027 documents will be available during July at www.aucklandcouncil.govt.nz/annualplan
Note to the Editor:
Auckland is home to 1.82 million residents and contributes almost 40% to New Zealand's national GDP.
Auckland Council delivers services, activities and investment for all residents within this budget. That’s hundreds of thousands of rubbish bin collections every week, over hundreds of millions of trips on buses, trains, and ferries; millions of library visits; hundreds of kilometres of road maintenance and thousands of kilometres of stormwater maintenance and renewals every year, to name a few.
Attached: Infometrics report ‘Wellington City Rates Affordability Research’ and Annual Plan 2026-27 Factsheet.
Media Contact:
Mayorofaucklandmedia@aucklandcouncil.govt.nz
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