Wellington mayor Andrew Little signals reduction in commercial rate multiplier
Thursday, 12 February 2026
Wellington mayor Andrew Little has given a personal pledge to bring down the city’s commercial rates differential but doesn’t yet know if he has the council backing he will need.
Wellington commercial building owners pay a multiplier of about 3.7-times that paid by residential ratepayers. It is thought to be among the highest in the country – critics say it is hamstringing business but proponents say it recognises the fact businesses use a lot more of the infrastructure rates pay for.
Little was addressing a Wellington Chamber of Commerce breakfast event on Thursday when he committed to reducing that 3.7 multiplier, or differential.
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“The logic of having a differential is compelling. When about 40% of the weekly workforce in Wellington commutes to the city from other territorial authorities, the differential is an efficient way to recover some contribution towards the cost of infrastructure,” he said.
“But I accept it has got out of whack.” He added, that dropping the commercial multiplier could mean a “significant” increase in residential rates if care was not taken.
“That’s why getting spending under control is so important,” he said.
Speaking after his address, Little said he had no specific reduction goal in mind as even a small drop could have a notable increase on residential rates.
Asked if he was talking about reducing the actual commercial rates paid or capping them, Little said it was only about reducing the differential.
In theory, the differential could drop but if the base rates went up, as they are forecast to do, it could mean little to the amount commercial property owners pay, apart from reducing the increase.
He stressed it was a personal rather than council commitment and he did not know where votes would fall.
“I'm confident that, we do the work on financial planning, budgeting, what have you that in time, we can do this,” he said.
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Correction: Wellington commercial building owners pay a multiplier of about 3.7-times that paid by residential ratepayers, not commercial ratepayers as mentioned in an earlier version of this story. (Amended: February 12, 2026 at 7.35pm)