Local government

Local government in Aotearoa is facing into a once in a generation transformation – a wave of changes all colliding at once.

Councils across New Zealand have been put on notice that the reorganisation and rationalisation of New Zealand's local government system is on its way. Councils have been facing pressure and shifting obligations for decades and now major system changes such as RMA reform ; water services reform and, most recently, the Head Start Pathway, are prompting councils to rethink how services are designed and delivered, and how they position themselves to meet current and future community needs. The call to action is reduced duplication between regional and district councils, streamlining planning and consenting, improved accountability and aligning local government with upcoming resource management reforms.

KPMG combines hands-on local experience with insights from our global network to support our clients across a range of specialist areas including commercial and financial advice, to organisational and technology transformation – working together to navigate better outcomes for New Zealanders.

A wave of reform

Key drivers of change

Head Start Pathway

Councils must submit indicative reorganisation proposals with central government expressing a clear preference toward amalgamation moving from two-tier government to unitary authorities.

Water reform

Councils must choose a future water services model and prove it is affordable, sustainable and compliant under Local Water Done Well.

Resource Management Act (RMA) reform

A new planning system is reshaping how councils manage growth, development and environmental outcomes.

Financial sustainability

Mounting cost pressures and ageing infrastructure are forcing councils to rethink how services are funded and delivered.

Asset management maturity

Ageing infrastructure is driving demand for better insight, smarter investment and stronger asset management.

New financial and regulatory requirements

Complex reporting and assurance obligations are raising the bar for council governance and financial capability.

IT/ technology modernisation

Outdated systems and poor data practices are accelerating the need for secure, integrated and digital‑ready technology.

What we do

Our tried and tested approach, delivered by experts who understand the realities of local government, sets us apart. Drawing on expertise across strategy, finance, infrastructure, asset management, technology, risk and governance, we bring diverse perspectives that help councils make informed decisions and deliver better outcomes for their communities.

By combining hands-on New Zealand experience with insights from our global network, we help councils navigate change, respond with confidence and capitalise on opportunities, enabling informed, citizen-focused decision-making that drives sustainable performance and meets the needs of current and future generations.

Together, we can help shape sustainable, community-focused outcomes that strengthen the wellbeing and prosperity of New Zealand's regions, towns and cities.

Supporting clearer decision-making, stronger accountability, and effective oversight.

Includes:

Governance and risk management - Fit-for-purpose governance design and practice cadence, compliance frameworks, risk management and assurance.
Operating model and organisational design - Translating strategic vision and community obligations into day-to-day operations
Regulatory and infrastructure reform - Regulatory strategy, price setting, cost benchmarking, regulatory submission development and review, and regulator engagement services.
Accounting - Public Benefit Entity (PBE) standards, strict long-term financial strategies, and statutory audits

Reducing duplication and accelerating investment from planning through to delivery.

Includes:

Infrastructure investment - Strategic planning, business case development and investment management support
Business case preparation - Feasibility studies, market sounding, funding applications, transactions, negotiations and contracts.
Capital Programme review and analysis - Assessment of a capital programme to identify risks, performance insights, and identifying optimisation opportunities.
Asset management - Optimisation of assets, asset management systems, strategic asset management plans, investment decision making and efficiency in operations and maintenance.

Helping councils and future entities fund, finance and prioritise investment.

Includes:

Funding and financing advice - Strategic planning, demand and financial modelling, debt structuring.
Price setting and regulatory economics - balancing public service delivery with financial sustainability
Cost benchmarking - Evaluate council operational expenditure, capital costs, and service delivery performance against peer groups.

Using technology, data and service design to improve outcomes for communities.

Includes:

Customer Centric Service Design - Customer journey mapping, multi-channel access, and real-time feedback strategies to build trust, reduce repeat contacts, and make interactions smooth and inclusive
IT & technology transformation - Core technology modernisation, comprehensive digital transformation programme delivery, cloud transition and enablement, responsible AI design and deployment, and managed services
Data analytics and insight - Making future proof decisions based on reliable data, targeted analysis and visualisations