Rates changes for 2025/26

An overall rates increase of 7.8% is planned for the 2025/26 year, which is less than the previously forecast 13.8% increase.

We are aware that people are facing economic challenges and are conscious of the impact of rates rises.

The overall rates increase for 2025/26 is 7.8% — less than the previously forecast 13.8% — the result of cuts to planned public transport upgrades, work to gain efficiencies, and reduced inflation costs.

To help keep rates down we have also increased Port Otago’s financial contribution by $2 million. An overall rates increase was still needed to help fund the work we do.

The rates increase in 2025/26 is partly due to the new large-scale environmental fund, a climate change strategy and biodiversity strategy, as well as the costs of doing business, including insurance, depreciation and rental costs.

The rates you pay help this council’s work to protect Otago’s natural resources — water, land and air — on behalf of the community.

That includes flood protection, natural hazard adaptation, public transport, compliance and a regional response to natural disasters.

Less than half of ORC’s funding comes from rates — the rest is from fees and charges, grants, reserves, dividends from Port Otago and investment income.

Some changes are proposed to ORC’s fees and charges. Find out more

What is behind rates changes

Contributing to reduced increase
  • Planned public transport upgrades in Dunedin and regions not going ahead
  • Increased funding from Port Otago
  • Inflation costs are less than previously expected
  • Decreases/deferral of work programmes
Contributing to rates increase
  • Introduction of new large-scale environmental fund
  • Rental cost of Whare Rūnaka (new office)
  • Public transport upgrades in Queenstown
  • Insurance costs

Planned cost of work

Where ORC funding comes from

2025/26 rates examples

What rates look like for each property is different — this is influenced by things such as location and the services provided.

Location Property's capital value 2024/25 rate 2025/26 rate % change
Waitaki $430,000 $258.93 $274.34 +5.95%
Central Otago $740,000 $332.23 $358.88 +8.02%
Clutha $370,000 $283.10 $305.64 +7.96%
Dunedin $590,000 $410.54 $436 +6.20%
Queenstown* $1,250,000 $635 $685.07 +7.89%

*Queenstown only, does not include the wider Queenstown Lakes area

Changes for public transport

Planned public transport upgrades have changed or will not go ahead for Dunedin and some of Otago’s regional centres due to the costs.

Councillors wanted to improve access to public transport, and after public consultation in 2024, agreed to progress with increased bus services for Queenstown and Dunedin as well as investigating and trialling regional public transport in some parts of Otago.  

Government co-funding for public transport has been reduced — $4.6 million less than needed for planned upgrades. Rather than ratepayers bearing the full cost of planned upgrades, proposed improvement plans have been pared back.

In the year ahead we’ll continue to provide the same passenger transport services in Otago — buses in Dunedin and buses and ferries in Queenstown.

Changes ORC is now proposing are: 

  • Investigating a service between Ōamaru and Dunedin; an alternative to an around-town option. 
  • Investigating a transport option for commuters from Alexandra and Cromwell to Queenstown. This recognises the volume of traffic between Central Otago and Queenstown, including commuters, and replaces the previously proposed trial for these towns. 
  • Investigating a transport option to connect Balclutha to existing Dunedin bus services instead of trialling a Balclutha–Dunedin Airport–Dunedin bus service. 
  • In Dunedin, increasing service frequencies on Route 5/6 (Pine Hill–Calton Hill) and Route 10/11 (Opoho–Shiel Hill) will not go ahead. 
  • Expanding bus services in Queenstown will go ahead — increased frequencies, improved connections and an Arrowtown ‘direct’ route via Malaghans Road are planned for 2025. Queenstown Ferry services will continue but won’t be expanded.
  • Funding constraints mean a Wānaka/Upper Clutha public transport business case won’t go ahead.

Around 5.3 million trips were taken on ORC buses in Queenstown and Dunedin in the 2023/24 year. Public transport also helps our environment by reducing congestion and carbon emissions.

Give feedback on fares and public transport services

Tell us what you think about public transport fares and the services we offer — we’ll be asking for your feedback soon.