Source: Auckland Council
A new Development Contributions Policy has today been adopted by Auckland Council’s Governing Body.
The policy ensures the cost of growth-related infrastructure is fairly shared between developers and ratepayers.
The Contributions Policy 2025 enables the council to recover development contributions from those undertaking development. The policy supports a 30-year plan for growth-related infrastructure in the investment priority areas in Auckland.
Auckland Council Mayor Wayne Brown said council had a rational debate and sorted this one out fairly fast.
“At the end of it, growth pays for growth; developers must pay their fair share of the cost of infrastructure,” said Mayor Brown. “Auckland ratepayers shouldn’t be expected to shoulder a disproportionate share of the cost of growth, especially during times when households are struggling.
“Given there are often complaints on both sides of this, and we received over 300 pages of robust advice to support our decisions, I’m confident we have landed in the right place.
“This is a very significant policy for council, one that enables approximately $10 billion of investment in priority areas across Auckland. We’re doing what we need to support growth in the right places, within the constraints in front of us.”
Matching pace and scale of growth
Auckland Council financial strategy general manager Michael Burns said the council is grateful for feedback on the policy, as it has helped inform a final policy that will enable infrastructure investment to match the pace and scale of Auckland’s growth.
“This is a complex but significant piece of policy that ultimately affects both current and future Aucklanders. It ensures the cost of new infrastructure is fairly shared between developers and ratepayers, and the council appreciates the feedback from a range of stakeholders that has helped get the balance right,” says Mr Burns.
“The new policy is informed by our long-term plan adopted last year and also supports a 30-year, $10.3 billion infrastructure investment programme in parts of Auckland where significant growth is expected and delivers quality urban environments.”
At today’s Governing Body, councillors endorsed a 30-year programme of infrastructure investment required to support the expected development in the identified Investment Priority Areas in Auckland, and adopted the new Contributions Policy 2025 – the two collectively enabling strategic infrastructure investment across Auckland.
The plans help meet the needs of Auckland’s forecast population growth, as 200,000 more Aucklanders are expected by 2034 and a further 400,000 by 2054. The contributions policy helps fund stormwater, transport, parks and community facilities in new and existing developments.
The 30-year programme focuses on investment in the Inner Northwest (Redhills, Westgate and Whenuapai), Drury, Māngere, Mount Roskill and Tāmaki.
The proposed contributions policy was revised following feedback during consultation and takes account of updated information on project requirements, developer and central government plans.
“Auckland has experienced substantial growth in the last decade and that is expected to continue. The scale of growth means the council needs to plan now for the investment required to support that growth and to plan how it will be funded,” says Mr Burns.
Investment priority areas
The increased investment the council is committing to is reflected in an increased development contributions price in some areas. This is particularly so in investment priority areas – Inner Northwest, Tamaki, Mt Roskill, Mangere and Drury – where the scale of growth requires aligned funding.
Some feedback suggested that it would be fairer for development contribution prices to increase over time rather than remain flat. The council has considered this and agreed that, while still recovering the full costs of infrastructure over time, prices should start lower and increase at 2 per cent annually. This ensures earlier developers pay a similar cost, in real terms, as those who develop later on.
On average, development contributions in the investment priority areas, paid in the 2025/2026 financial year, will be $48,000. This is down from the $68,000 that was consulted on.
Development contributions across the rest of Auckland (outside of investment priority areas) will remain on average $20,000 per household equivalent for the 2025/2026 year, less than the $32,000 that was consulted on.
The policy will come into effect on 1 July 2025.
For more information, visit aucklandcouncil.govt.nz/developmentcontributions
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Further information
What is the new pricing for development contributions?
Development contributions pricing will vary depending on a range of factors, including location, timing and investment levels by area.
Within the period of the Long-term Plan 2024-2034, areas outside of investment priority areas will see a $8.9 billion capital investment, with $1.5 billion from development contribution at $20,000 on average (per household unit equivalent).
Over a 30-year period, there is a $10.3 billion of capital investment in the investment priority areas, with $4.8 billion recovered from development contributions at $48,000 on average (per household unit equivalent).
The table below shows the development contribution prices.
Development contribution costs
| Previous 2022 policy (average cost per household unit equivalent) |
Consultation proposal (average cost per household unit equivalent) |
New 2025 policy (average cost per household unit in 2026 financial year increasing by 2 per cent each year) |
|
| Inner Northwest | $25,000 | $98,000 | $72,000 |
| Tāmaki | $31,000 | $119,000 | $71,000 (with a stormwater connection)$51,000 (without a stormwater connection) |
| Mt Roskill | $20,000 | $52,000 | $33,000 |
| Māngere | $18,000 | $29,000 | $27,000 |
| Drury | $70,000 | $83,000 | $64,000 |
| Elsewhere in the Auckland region | $20,000 | $32,000 | $20,000 |
