Auckland Council Finalises New Development Contributions Policy: Key Changes for Developers
As Auckland continues its rapid expansion, the funding of critical infrastructure remains a key consideration for landowners and developers. Auckland Council has officially adopted its revised Development Contributions Policy, set to come into effect on 1 July 2025. This significant update will impact all new development applications lodged from this date onwards, with notable adjustments to the fees payable by developers across the region.
After a period of consultation, the finalised policy sees a reduction in the average development contribution rates compared to the initial proposals. This is a welcome development for the industry, offering a more balanced approach to funding the infrastructure required to support Auckland's ongoing growth.
Key takeaways from the new policy:
Investment Priority Areas (IPAs): For developments within Auckland's designated Investment Priority Areas, the average development contribution for the 2025/2026 financial year will be approximately $48,000 per household equivalent. This is a significant decrease from the $68,000 that was originally consulted on.
Rest of Auckland: For developments outside of the Investment Priority Areas, the average development contribution will remain at $20,000 per household equivalent for the 2025/2026 year. This is also a reduction from the $32,000 initially proposed during consultation.
Gradual Increase: A key change is the introduction of a gradual increase in development contributions, set at a rate of 2% per year across the board. This aims to provide greater certainty and a more predictable cost trajectory for developers.
Application Lodgement Date: It is crucial to note that any applications for resource consent or building consent lodged before 30 June 2025 will be assessed under the existing Development Contributions Policy. Applications lodged on or after 1 July 2025 will be subject to the new policy.
Why does it matter?
It's crucial for new developers to understand that these development contributions, whether $48,000 in Investment Priority Areas or $20,000 elsewhere, are one-off payments per household equivalent or new lot created.
Unlike annual rates, this fee is levied at a specific point in your development process – typically when consent is granted for new dwellings or subdivisions – to help fund the necessary infrastructure for that specific new development. The 2% annual increase mentioned in the policy refers to how the base contribution amount will adjust for future applications, not an ongoing charge on completed projects.
Some of the IPA areas include Drury, Mangere, Mount Roskill, Tamaki, Red Hills, Westgate, and Whenuapai (Inner Northwest), where the scale of development requires additional funding.
These changes underscore the Council's commitment to ensuring growth pays for growth, while also responding to industry feedback to create a more viable and predictable environment for development.
The Auckland Council website will update its Development Contributions calculator to reflect these new rates, with the updated tool going live on 1 July 2025.
How can we help
Our team of engineers, planners, and surveyors is well-equipped to assist you in navigating these changes. We can advise you on how the new Development Contributions Policy will specifically impact your projects, helping you optimise your development strategy and ensure compliance. Contact us to discuss your next project and how these updates may influence your plans.
Helpful Links:
https://www.aucklandcouncil.govt.nz/building-and-consents/development-contributions/Pages/default.aspx
Note: This article aims to provide general guidance and should not replace professional advice specific to your project or situation. For professional advice, please get in touch with our team today.
