Financial contributions

Introduction | Types of financial contribution | Interim financial contributions policy | Payment of financial contributions

Interim financial contributions policy

Auckland City has introduced a new financial contributions policy that will apply to council decisions made on or after 2 February 2004. It is intended that the policy will apply until the adoption of a development contributions policy in July 2005.

Only residential development in the Auckland isthmus area is affected. It excludes development in the central area and the Hauraki Gulf.

The interim policy aims to make Auckland City's financial contributions policy more fair by reducing the very high amounts payable on residential development occurring on high value land.

The current formula bases 100 per cent of the contribution to be paid on the value of the site being developed. The new interim policy bases only 60 per cent of the contribution on site value. Forty per cent of the contribution is based on the average site value within the Auckland isthmus.

If the decision to apply a financial contribution was made prior to 2 February 2004 this policy will not apply to you. The test is not whether you have completed development but when the decision was made.

Who will benefit?

Residential development occurring in areas with high land value and which pay the highest contributions will benefit from a reduction. Research shows that in high land value areas such as Ponsonby, Newmarket and Parnell it is constraining residential development.

Residential development in areas with medium land value will benefit to a lesser extent.

Areas with low land values will pay the same as they are currently paying.

The money collected will still be allocated to projects within the council ward in which the development is taking place and to projects throughout the city as a whole.

No property will be liable to pay more than at present. Either there will be no change (in the case of low and medium value properties) or there will be reductions (in the case of high value properties).

For more information contact us.