Government to Introduce Rates Cap Limiting Council Increases to 4% from 2027

The Government will introduce a rates cap limiting annual council rates increases to between 2 and 4 percent per capita, aiming to control rising household costs while ensuring councils can maintain essential services. The cap will apply from January 2027 with a transition period for councils to adapt, and a regulator will oversee exceptions for extreme circumstances or justified revenue needs. Legislation will be finalized by early 2026, with the full regulatory framework implemented by mid-2029, including ongoing monitoring and reporting requirements for councils.