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Council Payroll Blowout: Big Five Spend $1.3 Billion On Staff

The 2026 Ratepayers’ Report – the local council league tables – shows that among New Zealand’s biggest urban councils, staffing costs have become a major burden on households.

While Auckland runs the country’s largest council machine in absolute terms, three other councils stand out for punishingly high staffing costs per household. Tauranga is costing households $2,047 in staff spending alone, Hamilton City $1,955, and Wellington City $1,919.

Across the five councils, at least 324 council staff are paid more than $200,000 a year, with 88 paid $256,800 - more than a Government minister (outside of cabinet).

Taxpayers’ Union spokesman Josh Van Veen said:

"At a time when families are cutting back, councils are asking ratepayers to fund ever-larger payrolls and management structures."

"For households feeling the pressure of high rates, these figures confirm exactly what they have long suspected: too much of their money is being swallowed by council staffing costs before a single pothole is filled."

"Wellington, Hamilton, and Tauranga lead the pack on a per-household basis. Auckland may spread its costs across a bigger base, but it still runs a vast bureaucracy that would make even Wellington blush."

"These figures suggest that the idea of 'public service' appears to have disappeared from local government. In some small towns now, the best paid jobs are at the local council. That's not sustainable."

"Local councils often claim that rates hikes are needed to fund infrastructure. But time and time again, the extra money goes on staffing. That is why capping rates to inflation is overdue."

NOTABLE FINDINGS

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Tauranga is the most staffing-expensive of the metro councils on a per-household basis, with staff costs of $2,047 per household.

Wellington has the densest workforce, at 19.3 FTE per 1,000 households, and the highest consultant-and-contractor spend per household at $736 per household.

  • This is 28 percent more than second-placed Hamilton City Council, which spent $575 per household.
  • Christchurch refused to declare their contractor cost, but spent $72,416,538 on consultants, at $436.20 per household.

Hamilton is the most top-heavy structurally, with 26.8 percent of staff in management/comms roles.

Auckland ratepayers are not just funding services; they are propping up a bureaucracy with 948 managers and 77 communications staff.

Notes:

The Ratepayers’ Report is available at RatepayersReport.nz

Regional media releases, including relevant notable findings, can be found here.

Frequently asked questions, including on methodology, can be found here.

The New Zealand Taxpayers’ Union is an independent and membership-driven activist group, dedicated to being the voice for Kiwi taxpayers in the corridors of power. Its mission, lower taxes, less waste, more transparency, is supported by 200,000 subscribed members and supporters.

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