12372 (2026). Tangi Utikere to the Minister of Local Government

12372 (2026). Tangi Utikere to the Minister of Local Government: What specific unintended consequences, if any, were identified that led officials to move away from a New Zealand model based on the New South Wales exclusions-based rates capping approach?

Hon Simon Watts: I am advised that some of the unintended consequences for implementing a hard, exclusions-based rate cap in New Zealand would be: • impacts on debt financing with higher interest rates for debt related to capped activities; • bureaucratic cost of compliance for councils; and • prospective limited savings. The target range model that Cabinet has agreed to, is designed to mitigate the unintended consequences of the exclusions-based model. The advice I have received from officials on the New South Wales rates peg has been proactively released is available on the DIA website: www.dia.govt.nz/Proactive-Releases#Dep