Tauranga Proposes Cemetery Fee Overhaul to Stem Financial Deficit

Tauranga City Council proposes radical changes to burial and cremation fees to stop a $500k deficit and prevent families from fleeing to Waikato for cheaper options.

By: AXL Media

Published: May 2, 2026, 4:43 AM EDT

Source: RNZ Pacific

The "Vicious Cycle" of Cross-Subsidisation

Historically, Tauranga City Council has used high cremation fees—the more common choice—to subsidise the cost of burials. However, Councillor Glen Crowther warns this has backfired, creating a "vicious cycle." High local prices have driven roughly half of Tauranga's cremation business to Hamilton or Rotorua, where fees remain lower even when transport costs are included.

The loss of volume has deepened the cemetery department's debt, which is funded entirely by user fees rather than rates. "If we don’t drop our charges, we’re losing money anyway because we’re losing hundreds of thousands of dollars a year of cremations that could come to us," Crowther stated.

Proposed Fee Changes for 2026/27

The council is moving toward a transparent "cost of service" model. The proposed changes, currently out for public consultation, include:

Service Type