The Local Government (System Improvements) Amendment Bill is currently before Parliament.

Public feedback to the select committee is closing 11.59pm on Wednesday, 27 August 2025 and feedback can be sent via this webpage.

The NZ Parliament website describes the bill as follows…

The Governance and Administration Committee is calling for submissions on the Local Government (System Improvements) Amendment Bill.

The bill would seek to reduce pressure on council rates by:

  • refocusing the purpose of local government; and
  • better measuring and publicising council performance; and
  • prioritising core services in council spending; and
  • strengthening council accountability and transparency; and
  • providing regulatory relief to councils.

The Bill proposes a range of amendments to the Local Government Act 2002 to meet its policy objectives.” 

Editor’s Note : This legislation seeks to remove the “social, economic, environmental, and cultural” well-beings from the Local Government Act 2002. The bill’s intentions (as per the Explanatory Note) also includes: “strengthen council transparency and accountability”, “prioritising core services in council spending”, “modernises public notice requirements”, and to increase “the maximum length of a chief executive’s second term to 5 years”. This is important legislation, which contains a number of other objectives and changes. Reading the bill’s whole Explanatory Note is recommended.

Links:

https://www.parliament.nz/en/pb/sc/make-a-submission/document/54SCGOA_SCF_CCEC6ABA-9FB7-4B54-F679-08DDC285D4B5/local-government-system-improvements-amendment-bill

https://www.legislation.govt.nz/bill/government/2025/0180/latest/whole.html#LMS1454359

The bill passed its first reading, with MPs voting along party lines as follows…

“A party vote was called for on the question, That the Local Government (System Improvements) Amendment Bill be now read a first time.

Ayes 68

New Zealand National 49; ACT New Zealand 11; New Zealand First 8.

Noes 54

New Zealand Labour 34; Green Party of Aotearoa New Zealand 15; Te Pāti Māori 5.

Motion agreed to.

Bill read a first time.”

 

 


Further reading on this issue:

Investigating New Zealand’s Local Government Act 2002 – A Layperson’s Guide

Local Government Act Reforms: December 2024 Media Coverage

Articles covering PM Luxon’s speech to LGNZ (August 2024)