Skip to main content

Subscribe to our mailing list

We’re moving to a new email system, and think it’s a great opportunity to tidy up our subscriber list. If you'd like to receive updates from us to your inbox, such as our monthly Rangitīkei Connect newsletter, Council consultations, and opportunities to share your views on local projects, plans, and decisions, then you can subscribe here.

Rangitikei District Council strapline

Key Dates

  • 4th February, 2026

  • Consultation on proposal closes.

  • 1st December, 2026

  • Legislation enacted.

  • 1st January, 2027

  • Legislation effective

  • 1st January, 2027

  • 1 January 2027 – 1 July 2029 – transition period

  • 1st January, 2029

  • Rates target in place

Rates Target Model

The Government is proposing a new Rates Target Model, sometimes referred to as rates capping, to limit how much councils can increase rates each year.

The Government has said the aim is to reduce pressure on household budgets, encourage councils to focus on core services, and improve accountability to ratepayers. Its proposed model would set a target range for annual rates increases based on long-term economic indicators, with inflation at the lower end and GDP growth at the higher end. Initial Government analysis suggested a range of 2-4% per capita per year.

The proposed cap would apply to all sources of rates, including general rates, targeted rates and uniform annual charges. It would not apply to water charges or other non-rates income such as fees and charges. Councils wanting to go above the upper end of the range would need approval from a central government-appointed regulator, including in situations such as natural disasters or where councils need to catch up on infrastructure investment.

The Government has indicated there would be a transition period before the full model takes effect. Councils would be expected to consider the rates target when preparing future long-term plans, with the full regulatory model expected to apply from 2029.

For Rangitīkei, the key issue is balance. Rates affordability matters, especially when household costs are high. At the same time, councils still need to maintain roads, renew ageing infrastructure, provide community facilities, and meet legal requirements. If councils have less flexibility to raise revenue, communities will need clear information about what services can be maintained, what work may need to be delayed, and what the trade-offs are.

Legislative stage: Government policy direction announced. Detailed legislation and the final regulatory model are still to come.

Level of certainty: Medium. The Government has clearly signalled its intent, but key details about how the model will work, how exceptions will be assessed, and how local circumstances will be recognised are still being developed.

Key resources