Funding flood reduction using the Infrastructure Funding and Financing (IFF) Act 2020

The IFF Act is an important alternative for delivering major infrastructure in Aotearoa New Zealand. By enabling long‑term, fixed‑rate debt to be raised through levies on beneficiaries of infrastructure, the model has already supported projects in Auckland, Tauranga, Wellington and Hamilton, raising $675 million to date. A key feature of the model is that this debt sits off balance sheet, helping project owners such as councils preserve borrowing capacity and maintain credit strength.

Amendments to the Act, expected in mid‑2026, aim to streamline its operation and broaden uptake across councils, water entities, developers, NZTA and KiwiRail. For the stormwater sector, this comes at a critical time: national investment is projected to rise by around 90%, and many organisations face tightening debt constraints.

The IFF Act is likely to be most suitable for projects – or a group of projects – costing over $50 million, with a useful life of more than 30 years, where cost certainty is high, and levy impacts are considered equitable for current and future ratepayers.

There is also scope to refine levy design – such as linking charges to impervious area – and to incorporate value capture where infrastructure increases land or property values.

With more than 120 stormwater and flood projects over $10 million already in the pipeline, the IFF Act could play a meaningful role in reducing flood risk nationwide.