Introduction

Under current policy, Ashburton collects DCs when someone applies for building consent, which can be years after the subdivision is consented. This makes us a policy outlier. Almost every Council in New Zealand that charges DCs, collects payment at the first point it can, and this is usually subdivision. Our outlier status leads, in some cases, to builders and purchasers of sections facing charges they did not expect when they seek to build.

We are proposing to commence taking DCs at the subdivision stage from 1 July 2027.

Why is this needed?

• Ashburton is an outlier from standard practice in not collecting DCs at subdivision. This change aligns our practice with what other Councils that collect DCs already do.
• Our current policy creates confusion and unexpected extra costs for people buying new sections who assume the developer already paid DCs.
• It means Council gets funding earlier, so it does not have to “bank roll” growth.
• Ashburton is a complete outlier in not collecting any DCs at subdivision.

How would it work in practice?

• It would affect any subdivision resource consent application submitted, with all accompanying information, on or after 1 July 2027.
• Council will assess the development contributions payable and issue a development contributions notice when resource consent is granted.

Council would invoice the development contributions for payment prior to the issue of the section 224(c) certificate. Issue of section 224 (c) certificate would be withheld until the invoice was paid.