Betterment for local road improvements

This page relates to the 2021-24 National Land Transport Programme.

Introduction

Where a council collects betterment from landowners receiving value from improvement works under section 326 of the Local Government Act 1974, the proceeds of betterment shall be apportioned between Waka Kotahi NZ Transport Agency and the approved organisation (council) at the same rate of funding assistance for the improvement work.

Where betterment applies

Section 326 of the Local Government Act 1974 requires a council, under certain circumstances, to collect betterment from landowners receiving value from improvement works.

Local Government Act 1974(external link)

Betterment applies where:

• a council acquires property to construct or widen all or part of a road
• the owners of the remaining property that adjoins the improved road gain an increase in property value that exceeds the compensation due to be paid to them for the property by the council.

The council shall then be paid the amount that exceeds the compensation.

Betterment also applies where:

• a council acquires property on one side of an existing road to widen it
• the owners of the property on the other side of the road gain an increase in their property value and may be required to pay betterment to the council.

Sharing of betterment

Any betterment collected by a council shall be apportioned between Waka Kotahi and the approved organisation at the rate of funding assistance applying to the work in question and will be applied as supplementary funding against the cost of the road improvement work.

Exclusions

Legal and valuation costs incurred in establishing the financial value of betterment are not eligible for funding assistance.