You’ll recall from our earlier blog (here) that Auckland Council have been undertaking a review of its Development Contributions (DC) Policy.

Development contributions are fees charged by a local Council for new development. This could be residential development such as a new dwelling, minor dwelling, subdivision, or a changed use in an existing building. Development contributions are also required for rural development, including rural subdivision.

 What does the development contribution policy relate to?  

The Auckland Council development contributions policy seeks to share the cost of growth- related infrastructure between developers and ratepayers.  In Auckland, the Development Contributions Policy 2025 is linked to the long- term plan, and a 30-year infrastructure investment programme, including in investment priority areas where the most growth is expected (Inner Northwest, Tamaki, Mt Roskill, Mangere and Drury). This also assumes that around 600,000 more people will be living in Auckland by 2054. 

The contribution value varies between areas and relates to new or upgraded infrastructure for:

• transport, footpaths, roads and intersections,
• parks, park facilities and sports grounds,
• drainage systems and stormwater mitigation,
• community facilities.

  DC Policy Consultation

  In 2024, Auckland Council put out the Development contributions consultation proposal for feedback. This indicated very significant rises in the DC level in some areas. For example, in the Inner North- West contributions were proposed to increase from $25,167 to $98,000 and in Tamaki it was proposed to increase from $31,157 to $119,000. Unsurprisingly, feedback was provided to Auckland Council that the increases were too high, weren’t calculated correctly, were not spread over the lifetime of the infrastructure, and would make a large number of developments uneconomic.

   The adopted Development Contributions Policy 2025

   Following further public feedback, an updated Development Contributions Policy was presented to the Auckland Council Governing Body on 30 May 2025 and was adopted. The value of development contributions will be lower than that consulted on but increase by 2% each year. This is so that people who develop land now and those who develop land in the future, pay a similar cost in real terms.

  On average, development contributions in the investment priority areas of Inner Northwest, Tamaki, Mt Roskill, Mangere and Drury, paid in this financial year, will be $48,000 (then increasing 2% annually for each subsequent financial year). This is reduced from $68,000 that was in the draft DC policy.

  Development contributions in the rest of Auckland will remain on average $20,000 per household equivalent for this financial year (as compared to $32,000 which was in the draft DC policy[1].)

  A comparison of some of the development contributions are shown below[2].