Value capture mechanisms: International Models and Relevance to NZ

SGS was commissioned by the New Zealand Ministry for the Environment, to undertake a review of value capture mechanisms applied in Australia and other jurisdictions with comparable planning systems to those in New Zealand. Based on exploration of practices used abroad, the research contributed findings and recommendations for value capture strategies which could be applied in the New Zealand context. The project was undertaken to reflect the Ministry’s interest in improving governance to effect urban change, in line with adopted regional and local plans and national priorities.

Key aspects of the work undertaken by SGS include:

  • Discussion of the concept of value capture
  • Discussion of how value capture differs from other forms of revenue raising in the planning system, such as infrastructure charges, impact mitigation payments, inclusionary zoning provisions, and development taxes
  • Identification of how value capture is implemented in Australia at the State/National, regional, and local levels, and illustration with short case studies where applicable
  • Identification of how value capture is practiced in other jurisdictions, such as the United Kingdom, and
  • Identification of preferred approaches to be used in New Zealand at the local, regional and national level, including the capacity of each option to operate within established legislative and institutional arrangements.

Within this analysis, each mechanism was assessed in terms of its implementation process, risks and revenue generating impact. The report recommended three options for a broad based value capture system in New Zealand, as well as overall principles to guide their implementation.