When we adopted the 2024-34 Long-Term Plan (LTP) we projected a 6.5 percent increase in rates required for the 2026/27 year, based on the projects and activities we had planned, as set out in the 2024-34 LTP. We are pleased to report that through prudent financial management and consideration of how the Council operationally delivers its services, that figure has reduced to an average increase of 5.2 percent.
The 5.2 percent figure is an average, and the actual impact will vary depending on your property type.
The key influences on rates for the coming year include:
- Insurance costs are forecast to increase, after a reduction in 2025/26. The impact of climate events, political and environmental risk will continue to place pressure on premiums.
- Higher asset valuations increase Councils depreciation costs and impact our ability to afford to renew the community’s assets.
- Economic changes e.g. geo- political influences on the New Zealand economy and the corresponding impact on inflation
- Responding to proposed legislative changes, such as preparing for the transition of water services under Local Water Done Well.
- Lower interest rate and lower rates of debt have reduced our debt servicing costs.
Council has also taken actions to reduce costs, including:
- cancellation of the Waiata House extension ($2.35m), and transfer station renewal ($546k), resulting in a significant reduction in capital costs
- reduced capital expenditure in the roading space ($6.7m) than proposed in the LTP due to changes in timing and scope of significant upgrade work.
What it means for you in 2026/27
How much your rates bill increases depends on where your property is, and its value. For example, rural properties tend to pay more for roading costs but won’t pay for water supply and treatment.
See the potential impact of the proposed increase on different property types below.
This year’s Annual Plan comes at an important time for Masterton. It sits within a period of significant change for local government in New Zealand.
Councils across the country are dealing with rising costs, increasing cost‑of‑living pressures for communities, and major national reforms - including proposed changes to resource management and local government systems, and the possibility of rates capping. Councils are also in the process of transitioning water services.
For several years, the Masterton community has been clear: affordability is a key concern, and rates increases must be carefully managed. At the same time, we need to make sure our district continues to grow and thrive.
The Council has taken steps to reduce costs and run our operations more efficiently through the 2026/27 Annual Plan process. This will continue as we develop the 2027-37 LTP, which will need to consider how we respond to some big challenges ahead.
One of the key considerations is the transition of water services to the new Wairarapa Tararua entity. This transition is a major structural change in how the Council operates. From 1 July 2027, water services - and the revenue tied to them - will move to the new entity. The Council and our community will need to consider how the Council, in its new form, provides remaining services in a way that is affordable, and whether we continue to offer the same services to the same level of service.
This Annual Plan is an important stepping stone. It helps set the scene for the conversations we will need to have together over the coming year about priorities, services, and how we build a sustainable future for Masterton.
The Development Plan, Our Future, Our Story – Masterton’s Vision Towards 2050, that we are also seeking feedback on is equally important. The development Plan will reflect the feedback we received from our community about what is most important to them, and areas of development or issues we need to work on as a community. This Plan will help shape Council’s strategic direction for the 2027-37 LTP. How we implement the Development Plan will also be considered as we develop the LTP.
The 2027-37 LTP will consider the changes that are occurring in our operating environment, and our community’s aspirations for the future, as expressed through the Development Plan.
Council has a number of ways to help people who are struggling to pay their rates. The important thing is to not leave things too late and to contact the Council as soon as there is an issue so we can discuss available options.
Direct Debit
Making smaller, regular payments in weekly, fortnightly or monthly arrangements by Direct Debit avoids getting a large quarterly rates bill and makes staying on top of your rates a lot easier.
Rates postponement policy
This is for residential properties occupied by the ratepayer as their normal place of residence.
The Policy is designed to provide temporary rates relief in cases of extreme financial hardship.
Rates remission policy
This policy allows for the remission of rates for a range of specific situations for homeowners under circumstances of extreme financial hardship.
Māori freehold land rates remission policy
This policy allows for the remission of rates on Māori freehold land.
Rates rebate scheme
The Rates Rebate Scheme provides a subsidy to low-income homeowners on the cost of their rates. You must apply for the rebate every rating year even if you have successfully received a rebate in previous years.
More information
For more information on these options please call us on 06 370 6300 or visit the Masterton District Council website.
