Water Services (Levies on Water Services) Regulations 2025
Version as at 27 August 2025
Water Services (Levies on Water Services) Regulations 2025
(SL 2025/89)
Cindy Kiro, Governor-General
Order in Council
At Wellington this 19th day of May 2025
Present:
Her Excellency the Governor-General in Council
Note
The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.
Note 4 at the end of this version provides a list of the amendments included in it.
These regulations are administered by the Department of Internal Affairs.
These regulations are made under section 201 of the Water Services Act 2021—
(a)
on the advice and with the consent of the Executive Council; and
(b)
on the recommendation of the Minister of Local Government made after complying with the requirements of section 201(2) of that Act.
Contents
Regulations
1 Title
These regulations are the Water Services (Levies on Water Services) Regulations 2025.
2 Commencement
These regulations come into force on 1 July 2025.
3 Interpretation
In these regulations, unless the context otherwise requires,—
2026 financial year means the financial year starting on 1 July 2025 and ending on 30 June 2026
2027 financial year means the financial year starting on 1 July 2026 and ending on 30 June 2027
2028 financial year means the financial year starting on 1 July 2027 and ending on 30 June 2028
census means the census of population and dwellings carried out by Statistics New Zealand under the Data and Statistics Act 2022
council-controlled organisation has the meaning given to it in section 6(1) of the Local Government Act 2002
GST means goods and services tax payable under the Goods and Services Tax Act 1985
liable entity means the territorial authority of a district or the water organisation that is the drinking water supplier, wastewater network operator, or stormwater network operator in that district
quarterly payment period means the quarterly period to which an invoice relates
water organisation has the meaning given to it in section 4 of the Local Government (Water Services) Act 2025.
Regulation 3 water organisation: replaced, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
4 Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in the Schedule have effect according to their terms.
Part 1 Levies on water services
5 Levies on water services
Separate annual levies are payable in respect of each of the following water services:
(a)
water supply:
(b)
wastewater:
(c)
stormwater.
6 Apportionment of levies
(1)
The Water Services Authority must apportion the total amount of levies payable in respect of water services in any given financial year between districts using the following calculation:
(a)
divide the total amount of levies by the total population of New Zealand (excluding the population of the Chatham Islands) at the date of the most recent census to obtain the per-person cost of the levies; then
(b)
multiply this cost by the population of each district (excluding the Chatham Islands Council district) at the date of the most recent census to obtain the total amount of levies payable for that district; then
(c)
determine the annual levy payable in respect of each water service by apportioning the total amount of levies payable for that district between the 3 water services, using the prescribed percentage split for the relevant financial year.
(2)
The Water Services Authority must carry out the calculation set out in subclause (1) for a financial year before the start of that financial year.
(3)
An apportionment of levies applies for the entire financial year, even if new census data becomes available during that year.
Regulation 6(1): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Regulation 6(2): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
7 Liability to pay levies
(1)
If the territorial authority of a district is the drinking water supplier, wastewater network operator, or stormwater network operator for the district, the territorial authority is liable to pay the levies in respect of those water services delivered in that district.
(2)
However, if a water organisation is the drinking water supplier, wastewater network operator, or stormwater network operator, the water organisation is liable to pay the levy in respect of the water services delivered by the water organisation in that district.
(3)
Despite subclause (2), a territorial authority and a water organisation may agree that the territorial authority will pay the levy.
8 Chatham Islands Council
The Chatham Islands Council is not liable to pay levies under these regulations.
9 Levies payable to Water Services Authority on quarterly basis in advance
(1)
The liable entity must pay levies to the Water Services Authority on a quarterly basis in advance.
(2)
Levies must be paid by the last day of the month preceding the quarterly payment period.
Regulation 9 heading: amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Regulation 9(1): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
10 Invoices
(1)
The Water Services Authority must issue invoices for the quarterly periods ending on the following dates each year:
(a)
31 March:
(b)
30 June:
(c)
30 September:
(d)
31 December.
(2)
The Water Services Authority must issue invoices by the tenth day of the month preceding the quarterly payment period.
(3)
If a territorial authority has entered into an agreement with a water organisation under regulation 7(3), the territorial authority must notify the Water Services Authority that the territorial authority will pay the levy to which the agreement relates.
(4)
If the Water Services Authority receives a notification under subclause (3), invoices for the levy must be issued to the territorial authority.
Regulation 10(1): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Regulation 10(2): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Regulation 10(3): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Regulation 10(4): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
11 Levies exclusive of GST
The levies are exclusive of any GST.
12 Chief executive may waive or refund levies
(1)
The chief executive may grant a waiver or refund of levies, in whole or in part, in any particular case or class of case to which 1 or more of the following circumstances apply:
(a)
the amount of the levies is less than the reasonable cost of recovering the levies:
(b)
the Water Services Authority has made an administrative error:
(c)
the Water Services Authority’s audited financial statements, over a reasonable period of time, show that there has been an over-recovery of the Water Services Authority’s actual costs:
(d)
the chief executive is satisfied that it would be unreasonable or unfair to require payment of the levies.
(2)
If the Water Services Authority decides to waive levies, in whole or in part, it must publish the decision, and its reasons for the decision (including why the waiver is appropriate), on an internet site maintained by or on behalf of the Water Services Authority.
Regulation 12(1)(b): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Regulation 12(1)(c): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Regulation 12(2): replaced, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
12A Penalty for late payment of levies
(1)
The chief executive must impose a penalty on any levy, or any portion of a levy, that is not paid on or before the date specified in regulation 9(2).
(2)
However, subclause (1) is subject to regulation 12.
(3)
The amount of a penalty imposed under subclause (1) is 5% of the amount that is late.
(4)
A penalty under this regulation is added to the levy that is late, and must be treated as if it were a part of the levy.
Regulation 12A: inserted, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
13 Minister must review levies
(1)
The Minister must, on the advice of the Water Services Authority, review the levies payable under these regulations.
(2)
The Minister must consider the following at each review:
(a)
whether it is appropriate to increase, decrease, or maintain—
(i)
the total amount of levies; and
(ii)
the prescribed percentage split of the levies across the water services; and
(b)
whether it is appropriate to make any changes to the design of the levies.
(3)
Before making any changes to the total amount of levies, the prescribed percentage split, or the design of the levies, the Minister must consult with any territorial authorities and water organisations who may be affected by the proposed changes.
(4)
Once the review is complete, the levies may be fixed for the following 1, 2, or 3 financial years.
Regulation 13(1): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
14 Timing of ministerial reviews
(1)
The Minister must complete the first review by 30 June 2028.
(2)
The Minister must start subsequent reviews—
(a)
no earlier than 1 year after the start of the previous review; and
(b)
no later than 3 years after the start of the previous review.
(3)
However, the frequency of subsequent reviews must match the period for which levies are fixed under regulation 13(4).
Part 2 Levies for 2026, 2027, and 2028 financial years
15 Levies for 2026, 2027, and 2028 financial years
For the purposes of regulation 6(1)(a), the total amount of levies payable in respect of water services is $20,658,000 per annum for each of the following financial years:
(a)
the 2026 financial year:
(b)
the 2027 financial year:
(c)
the 2028 financial year.
16 Percentage split of levies across water services for 2026, 2027, and 2028 financial years
For the purposes of regulation 6(1)(c), the percentage split of the levies across the water services for the 2026, 2027, and 2028 financial years is as follows:
(a)
for the 2026 and 2027 financial years,—
(i)
for water supply, 75%:
(ii)
for wastewater, 21%:
(iii)
for stormwater, 4%; and
(b)
for the 2028 financial year,—
(i)
for water supply, 74%:
(ii)
for wastewater, 21%:
(iii)
for stormwater, 5%.
Schedule Transitional, savings, and related provisions
Part 1 Provisions relating to these regulations as made
1 Levies for period 1 July 2025 to 30 September 2025 payable in arrears
(1)
Despite regulation 9, a liable entity must pay levies to the Water Services Authority in respect of the period beginning on 1 July 2025 and ending on 30 September 2025 in arrears.
(2)
A liable entity must pay the levies referred to in subclause (1) within 3 weeks of receipt by the liable entity of an invoice for the levies from the Water Services Authority.
Schedule 1 clause 1(1): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Schedule 1 clause 1(2): amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
2 Invoices for period 1 July 2025 to 30 September 2025
Despite regulation 10, the Water Services Authority must issue invoices in respect of the period beginning on 1 July 2025 and ending on 30 September 2025—
(a)
no earlier than 1 July 2025; and
(b)
no later than 21 July 2025.
Schedule 1 clause 2: amended, on 27 August 2025, by section 172 of the Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43).
Nicola Purvis,
Acting Clerk of the Executive Council.
Date of notification in Gazette: 22 May 2025.
Notes
1 General
This is a consolidation of the Water Services (Levies on Water Services) Regulations 2025 that incorporates the amendments made to the legislation so that it shows the law as at its stated date.
2 Legal status
A consolidation is taken to correctly state, as at its stated date, the law enacted or made by the legislation consolidated and by the amendments. This presumption applies unless the contrary is shown.
Section 78 of the Legislation Act 2019 provides that this consolidation, published as an electronic version, is an official version. A printed version of legislation that is produced directly from this official electronic version is also an official version.
3 Editorial and format changes
The Parliamentary Counsel Office makes editorial and format changes to consolidations using the powers under subpart 2 of Part 3 of the Legislation Act 2019. See also PCO editorial conventions for consolidations.
4 Amendments incorporated in this consolidation
Local Government (Water Services) (Repeals and Amendments) Act 2025 (2025 No 43): section 172