Financial and development contributions

The RMA allows councils to require a financial contribution to achieve the sustainable management purpose of the RMA. Financial contributionsgenerally address the direct impacts of a particular development. 4542 Financial contributions are being phased out, and will not be used after 2022.

The Local Government Act 2002 allows councils to require a development contribution for the purpose of contributing a portion of the costs of capital expenditure to service growth. The Local Government Act contains seven principles which expand on the purpose of development principles. These include the principle that development contributions can only be required where the development requires territorial authorities to provide new or additional assets or increased capacity.

A council must take care to ensure that contributions are not taken twice for the same type of development.


Last updated at 2:30PM on January 8, 2018