GfHG Pillar 2 announcement
The Government has announced some decisions on the second stage of the Going for Housing Growth programme (GfHG), with improvements to infrastructure funding and financing tools to help get more housing built.
The Government is planning to broaden and enhance the infrastructure funding and financing toolkit by:
Replacing development contributions with a development levy system. Shifting to development levies will provide councils with more flexibility to charge developers for the overall cost of growth infrastructure across an urban centre – and ensure that ‘growth pays for growth’.
Making changes to improve the effectiveness of the IFF Act, particularly for developer-led projects. This includes broadening the scope of the IFF Act and simplifying the levy development and approvals process.
Improving the flexibility of targeted rates for growth infrastructure, by enabling councils to set targeted rates that apply when a rating unit (for example, a separate property) is created at subdivision stage.
The legislation to implement these changes is expected to be introduced in September 2025 and enacted in mid-2026. There will be opportunities for feedback as part of this process.
You can find factsheets, and links to more information on the HUD website: Going for Housing Growth programme - Te Tūāpapa Kura Kāinga - Ministry of Housing and Urban Development