How to Cap Rates Now: A Bold Plan to End Skyrocketing Rates

The Taxpayers' Union has today released a new paper, How to Cap Rates Now, providing a benchmark for the Minister of Local Government to use in formulating the rates cap policy promised by Christmas. This follows the strong backing of over 30,000 New Zealanders who signed the Cap Rates Now petition and Minister Watts' commitment to having policy announced before the end of the year.

Tory Relf, spokesperson for the Taxpayers' Union, said:

"With rates rising on average 34 percent in the last three years, the Government can't afford to wait. Councils are already drafting their 2026/27 budgets, and unless a cap is put in place now, they'll lock in higher baselines that households will be stuck with for years."

"With Local Government New Zealand trying to de‑fang this policy, we have set out what an effective cap must look like. It must cover all local government revenue so councils can't simply change their method of picking ratepayers' pockets. It should be tied to inflation, account for population growth so councils aren't punished for growing communities, and make sure ratepayers, not bureaucrats, remain in control of major decisions."

"We're also calling for safeguards so councils can't use emergencies as an excuse to lock in permanently higher rates, and for any oversized rates hikes to be refunded directly back to the people who paid them."

"A bottom line is an inflation measure that isn't based on council's own inefficiency. We already have measures for inflation (the Consumer Price Index and the Producer Price Index) that are objective and transparent."

"New Zealanders have been clear: they want real relief from skyrocketing rates. Our proposal gives the Minister everything he needs to act quickly and deliver a genuine, comprehensive cap that protects Kiwis from further cost increases."

The full report can be found at taxpayers.org.nz/how_to_cap_rates_now.