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If adopted by the council, city councillors and community board members would be eligible to an allowance only if their child is under 14 and the childcare is not provided by a family member.
Childcare allowances are also limited to $6000 a year per child.
City councillors are paid $102,400 whereas the pay of community board members varies between $9864 and $24, 580, chairs of community boards are paid up to $49,160.
The new policy from the Remuneration Authority was released at the start of July and has been left to individual councils across New Zealand to decide whether to adopt it or not.
The policy was prompted by Hurunui District councillor Julia McLean after she asked the Remuneration Authority to subsidise childcare for parents in elected local government roles.