Councils to be able to charge developers with new levy from 2029

<p>The Government has confirmed it will let councils charge development levies from 2029, as it seeks to change the system by which infrastructure growth is paid for.</p> <p><b>By Giles Dexter for </b><a href="https://www.rnz.co.nz/news/politics/1413901/councils-to-be-allowed-to-charge-developers-with-new-levy-from-2029" target="_blank"><b>RNZ</b></a></p> <p>Currently, councils charge developers a "contribution" to help cover the costs of growth.</p> <p>But the development contribution system has long been criticised as inconsistent and inflexible, and leading to ratepayers cross-subsidising the costs of growth elsewhere.</p> <p>Councils are also under-recovering the cost of growth, with the gap between planned growth-related capital expenditure and the anticipated cost recovery estimated to be as high as $11 billion from 2021 to 2031.</p> <p>Housing Minister Chris Bishop said the development contribution system would not work under the Government's planning changes, which were designed to be more flexible.</p> <p>"The new development levy system will make sure that growth pays for growth, and that the beneficiaries of new housing and the developers…