The Local Government (Community Well-being) Amendment Bill had its third reading in Parliament on 7 May 2019. It will come into force the day after it receives the Royal assent.

It was introduced by Local Government Minister Nanaia Mahuta on 5 April 2018.

The bill amends the Local Government Act 2002. The bill has three main objectives:

• To restore the purpose of local government to be "to promote the social, economic, environmental, and cultural well-being of communities";
• to restore territorial authorities' power to collect development contributions for any public amenities needed as a consequence of development;
• and to make a modification to the development contributions power so that it is clear that advances of financial assistance from the New Zealand Transport Agency that are recoverable do not affect the power of territorial authorities to collect development contributions for projects which are financed using that mechanism.

After the Governance and Administration Committee reported on the bill it was unable to agree on whether to recommend that the bill be passed. The National Party opposed the bill.

Clause 5 amends s5 (Interpretation) of the principal act, replacing the definition of community outcomes and good-quality.

Clause 6 amends s10 (Purpose of local Government) replacing s10(1)(b) with (b) to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future.

Clause 7 amends s14 (Principles relating to local authorities). “Well-being” replaces “interests” in s14(1)(h)(i).

Clause 8 amends s101 (Financial management).

Clause 9 amends schedule 10 replacing clause 2(1)(c) (Groups of activities) and 23(d) (Information to be included in annual reports – Groups of activities).

Clause 13 amends s200 (Limitations applying to requirement for development contribution) by inserting subsections (5) - (10). These new provisions will ensure that if territorial authorities or a council- controlled organisation receive funding from the New Zealand Transport Agency, they would still be entitled to collect developmental contributions.