Nationwide call to soften rates burden
Palmerston North is joining other local councils in calling for an increase in rates rebates available for low-income earners.
The Whanganui District Council is leading the charge with a remit to Local Government New Zealand’s annual meeting in August.
Whanganui’s remit argues the scheme, which entitles ratepayers with a household income of up to $25,660 to a rates rebate of up to $640, has not kept pace with the widening gap between incomes and rates.
The council says the amount should be increased, and be reviewed upward each year.
The scheme is administered by councils, and paid for through the Department of Internal Affairs.
By March 2 this year, more than $60 million in payouts to more than 103,000 people nationally had been approved for the year.
More than 1990 ratepayers in Palmerston North received a total of $1.2m in rates rebates during the 2019/20 financial year.
Mayor Grant Smith said of the remits put forward by the Whanganui District Council, the call for a more generous rates rebate scheme was one he particularly supported.
The proposal runs counter to a recommendation from the Productivity Commission, which has recommended the Government should scrap the rates rebate scheme.
It said the scheme was poorly targeted and unfair, because it did not address the situation of people who rented homes and faced high costs for housing.
Instead, it has recommended a national scheme for postponing rates would be better.
Postponement would see rates bills paid by borrowing against the equity in a property.
However, Grey Power, which represents many of the homeowners on fixed incomes who are eligible for the scheme, wants rebates retained.
National president Mac Welsh has said the organisation ‘‘absolutely disagreed’’ with abolishing the scheme. Grey Power has proposed the rebate should be worth $1000 a year and be increased in subsequent years.
More than 1990 ratepayers in Palmerston North received . . . $1.2m in rates rebates during the 2019/20 financial year.