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flag New Zealand will limit local council rate hikes to 2%-4% annually starting 2027, with exceptions for emergencies.

flag New Zealand will cap local council rate increases at 2% to 4% per capita annually starting January 1, 2027, with exceptions only for extreme circumstances like natural disasters. flag The policy, excluding water charges and other fees, requires councils to seek approval from a new regulator to exceed the limit, especially for infrastructure projects. flag A transition period begins in 2027, with full implementation by 2029. flag Councils must report on financial health and long-term planning. flag The move, part of broader reforms including abolishing regional councils, aims to balance affordability with essential service delivery. flag Critics warn it may worsen infrastructure deficits, force service cuts, and lead to privatization, urging alternative funding like shared GST. flag Public consultation runs through February 2026, with legislation expected by year-end.

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