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Yes. The key point is that National could constrain how quickly councils increase ordinary rates, but it would not take rate-setting away from councils altogether.

As of October 2026, National's proposal is particularly relevant because the Local Government (Rates Capping) Amendment Bill has been introduced but is still going through Parliament. So, for the election, you should treat the following as a proposed National policy/framework rather than an already fully implemented system. Local Government (Rates Capping) Amendment Bill | New Zealand Legislation

What National could change about your rates

National proposes a 2–4% annual target range for increases in non-water-related council rates. The proposal would apply nationally and would be overseen by an independent regulator. The Government says the system would fully take effect for rates increases from 1 July 2029, with councils having to take the range into account during the transition. Keeping rates affordable | National Party

For a homeowner living largely on NZ Super, that could be significant:

• It would make large annual rates increases less likely, giving you more predictability.
• It would put pressure on councils to find savings, reduce spending or defer some projects rather than simply raising rates substantially.
• There would be exceptions—for example, serious natural disasters or situations where a council could demonstrate prudent financial management and a justified need to go outside the range. Councils would generally have to consult their communities in such cases. Government to cap rates | National Party
• Water-related rates are excluded from this particular cap. That matters because water, wastewater and stormwater costs can be a significant part of a household's local-government bill. Local Government (Rates Capping) Amendment Bill | New Zealand Legislation

There is an important catch: a 4% cap on the council's average rates price isn't necessarily a guarantee that your individual bill rises by no more than 4%. Councils can use different rating systems and targeted rates, and changes in the distribution of the rates burden can affect individual properties.

For example, Auckland currently uses property capital values to determine each property's share of rates. A revaluation doesn't itself give Auckland Council more money; it changes how the total rates requirement is distributed among properties. Rating Valuation – frequently asked questions - OurAuckland

What would still be decided by your council?

Quite a lot.

Even with National's proposed cap, councils would continue deciding:

• How much they spend on local services and infrastructure, within the legal framework.
• Whether to spend more or less on things such as roads, footpaths, parks, libraries, pools, public transport and community facilities.
• Which projects get priority and when they are built.
• The structure of rates—such as general rates, uniform charges and targeted rates—subject to national law.
• How the rates burden is distributed between residential, business, rural and other properties.
• Local fees and charges, where these aren't governed by central government.
• Long-term plans and annual budgets, including the trade-offs between services, debt, investment and rates.

The Government's own explanation of the proposed cap explicitly says councils would retain responsibility for local services, service levels, infrastructure investment, growth and development planning, local priorities and spending decisions. Proposed rates capping system - Our work - Ministry for Cities, Environment, Regions and Transport

So the practical effect is more like "councils still choose what to do, but central government puts a speed limit on one important way of paying for it", rather than "National sets your rates."

Auckland is a useful example

If you're in Auckland, the distinction is especially important.

Auckland Council has just adopted a 7.9% average residential rates increase for 2026/27. It says the major reason is the additional cost of owning and operating the City Rail Link, while it is also investing billions in infrastructure and essential services. Annual Plan: what’s happening with rates? - OurAuckland

Under National's proposed future system, a council facing that sort of pressure could not simply respond with an equivalent increase in the ordinary rates covered by the cap. It would have to look harder at:

• cutting or delaying expenditure;
• finding efficiencies;
• changing priorities;
• using other sources of revenue;
• borrowing where appropriate; or
• seeking an exemption under the national framework.

That doesn't mean the underlying cost disappears. The political question becomes who pays, when they pay, and which services or projects are changed.

What this means for your particular household

Given that you own your home and depend mainly on NZ Super, I'd distinguish three different risks when comparing parties:

Cost	How much National's rates policy could directly affect it
Ordinary council rates	High — proposed 2–4% framework is directly relevant
Water/wastewater/stormwater charges	Lower/directly unaffected by this cap
Electricity bill	Very little directly — this is primarily a central-government/energy-market issue
Healthcare costs	Very little through council rates — mainly central government
Council fees/charges	Potentially some effect, but councils retain substantial control

And there's an important behavioural/political trade-off: a rates cap can protect a fixed-income homeowner from sudden bills, but it doesn't make the cost of council services disappear. If infrastructure still needs to be built or maintained, restricting rates may mean more borrowing, reduced services, delayed projects, higher user charges, or greater pressure for central-government funding.

So, when deciding your vote, I'd look beyond the headline "rates capped at 4%" and ask National specifically:

1. What services or projects would councils be expected to cut or delay to stay within the cap?
2. Does the cap cover the particular water charges I pay?
3. What qualifies as an exemption, and who ultimately decides?
4. Could councils compensate for the cap by increasing fees or targeted charges?
5. What is National proposing to do about electricity and healthcare costs, which may matter just as much—or more—to a retired homeowner?

Those questions get much closer to the effect on your household budget than the 4% headline alone. Keeping rates affordable | National Party

If you'd like, I can next compare National, Labour, ACT and the Greens specifically on rates, NZ Super, electricity and healthcare costs for a retired homeowner, using their 2026 election policies rather than general party positioning.