Local Government Reform

Central Government has introduced a nation-wide reform to the local government structure, with the proposal to create ‘Unitary Authorities’ who will oversee public services across a larger area of districts. The intention is to simplify local government, and includes a mandatory programme for all councils to make a submission through the Head Start Pathway. Each council needs to submit their proposal (on their preferred option and proposed implementation plans) to Government before 9 August 2026.

If credible proposals are not submitted by councils, the Government will impose a reform model using the "Back Stop" process. This will involve a standardised, compulsory reorganisation process after 2028.

Details on what the Back Stop framework will look like are still being worked through by Government, however it is anticipated that during the transition regional council governance will be undertaken by an interim body after 2028. Government intends that legislation for the backstop process will be enacted before nominations open for the 2028 local elections. This will ensure candidates understand any new roles and responsibilities and electors can vote with clarity.

It’s unclear what changes, if any, would be actioned under a new government. Of note, the main opposition parties have not spoken out against the overarching idea of local government reform.

This is not a referendum or a legally binding consultation. Councils have been instructed by the government to conduct this process and include public feedback as part of the Head Start submission process.

While no official dates have been confirmed by the Government, the final Head Start Pathway proposal would be in place for the 2028 elections. After the August 9 deadline for council submissions, in September Cabinet will consider the proposals in principle. By May 2027, final proposals will be confirmed by Cabinet for policy decisions – to approve the new legislation later in the year. In early 2028, the legislation will be enacted, and implementation of the new local government structures are due to begin from May 2028 – to prepare for the new local government elections.

These details are currently unknown, as the elected member structure and electoral voting processes are yet to be determined. We should know more after the government decisions and policies have been finalised beyond May 2027.

This option groups councils based on the Waikato River catchment, rather than current council boundaries. It is still being explored and would require support from other councils.

While the structure of the local government reform is yet to be determined by Government, we aren’t expecting any changes to be implemented until approximately May 2028 – prior to the next round of local government elections.

This is a Government directive under the Head Start for Simpifying Local Government, which states that local government must be reformed. This is a mandatory change for all councils in New Zealand.

Government has indicated that regional councillors will not continue after 2028. Regional functions (like flood protection and environmental management) will remain — but under new structures.

The current government has indicated that they will replace regional councillors at the 2028 local elections.

Future changes will not include regional councillors and may result in new local government structures such as unitary authorities. The Government confirmed that key regional council functions, including flood protection, environmental management, biosecurity and public transport, will remain with local government.

However, the roles and structures of the new local government organisations are yet to be determined.

The financial structure and distribution is yet to be determined, as is the way that local government can receive funding from central government. However, we do know that the government has also mandated a new rates capping initiative, so regardless of the next local government structure, rates will be required to be capped by 2-4% by 1 July 2029.

While Council’s intention is to ensure public services are retained and maintained locally, we do not know what the changes mean for local services yet. But until the reformed changes are implemented (approximately May 2028), local services and infrastructure will be operating as business as usual.

We know financial analysis may play a big part in considering the merits of the different scenarios. Given central government’s strict timelines, Council hasn’t explored these aspects in detail at this stage, but they are important considerations and things we will focus on in any reorganisation scenarios going forward. To understand the financial implications, there needs to be robust auditing and analysis completed - to ensure we have a clear and accurate picture for any reorganisation scenario going forward.

A unitary authority is a single council that combines the responsibilities duties and powers of a regional council, combining both local and regional functions within a single organisation.

A city or district council, responsible for local infrastructure and community services, such as roads, water supply, wastewater, stormwater, rubbish and recycling, libraries, parks and local regulatory functions.

Council anticipates having a further conversation with the community in the future, once preferred options have been decided upon, and more in-depth analysis can be completed.

Conversations around wards are yet to happen, as this is reliant on the new boundary lines of any amalgamated areas. Beyond that, the newly established authorities would likely need to go back to a public poll or vote to reconfirm Māori Wards.

There has been some consideration that this could be a possibility with some districts. Waipā and Hamilton City Council for example, have created options with partial districts (i.e. Waikato District). The Department of Internal Affairs (DIA) advice related to Head Start, states this is something that could be considered, but the main focus is staying within your region and amalgamating the district – as opposed to splitting it.

Rotorua Lakes is still considering its options, but it is fair to say that currently Taupō and South Waikato are among its key options.

There is a risk with the Head Start initiative, that other councils can put in proposals including South Waikato – so these could be accepted by the Government without our input or direct consent. The Head Start amalgamation proposals must include two or more other districts – and Minister Chris Bishop has announced, “Either way, change is coming.”

Analysis on this level requires extra resource and time. No council is realistically unable to conduct such analysis within the Government’s timeframe. Once the options have been finalised, councils will be required to explore and develop the options with further analysis and will essentially go through a business case process.

August 9 is the first gate that we need to go through, then there’s a lot more work – including from the DIA – to get to the next gate.

This would depend on the governance arrangements of each authority, which has not begun development yet. It’s about that relationship with your councillors, but generally the larger the authority, the higher the risk of community isolation.

Again, this will depend on the governance representation model – which may require a weighting in order to have fair representation.