The Government’s ‘Going for Housing Growth’ programme will replace development contributions with a levy system to better fund housing infrastructure.

Under this approach:

• Developers pay a proportionate share of growth infrastructure costs across levy areas using a
  standard method
• Levies cover core services: water, wastewater, stormwater, transport, and community facilities
• A regulator, likely the Commerce Commission, ensures consistent application
• The new system is designed so that “growth pays for growth”, reducing reliance on existing ratepayers funding growth projects.

Development Levies Resources:

• LGNZ Funding and Financing Explainer
• Simpson Grierson: Development Contributions vs Development Levies - What’s changing and why it matters
• Have your say and make a submission

Next steps

Consultation on the draft legislation is running through early 2026, with a Bill expected to be introduced mid‑year and enacted by early 2027. Councils would be able to begin charging development levies, after adopting levy policies, from around 2028.

Government consultation closes February 20 2026 – you can find more detail and make a submission at https://www.dia.govt.nz/development-levies-consultation.