Government Caps Council Rates Increases at 4% to Keep Costs Affordable

The Government will cap council rates increases at 4 percent to keep rates affordable and ease cost-of-living pressures, requiring councils to limit annual increases within a 2-4 percent target range starting from July 2027 and fully effective by July 2029. Exemptions to the cap will be allowed only in exceptional circumstances, such as natural disasters or justified financial management needs, with councils required to consult their communities before setting rates. An independent regulator will oversee compliance, assess exemptions, advise on target ranges, and support councils during implementation, while water services remain regulated separately.