Auckland household rates to rise $320 over Goff’s term

Auckland houses rates will rise by $321 over the next three years if mayor Phil Goff wins a second term.

Goff has promised to increase rates by 3.5 per cent a year during his second term, but moves to lower the rates burden on businesses means higher rates for households.

The upshot is rates will rise by an average of 12.5 per for households and 7.7 per cent for businesses.

This will take the average household rates bill of $2568 to $2889 after three years, a rise of $321.

Goff acknowledged a plan to slowly reduce higher business rates and make them equitable with household rates will hit households but said it aims to promote business and create jobs to lift the city’s economy.

“As the business rates go down gradually, the residential share goes up gradually,” said Goff, who did not know the exact calculations.

He said the plan to gradually cut business rates relative to household rates has been going for several years and is due to be completed in 2036.

Council officers said the differential strategy is forecast to lift household rates by about 0.5 per cent and cut business rates by about 1 per cent over each of the next three years. Each year about $6.45 million would shift from business to households.

Goff said the net effect would still be an overall rates rise of 3.5 per cent.

In his first term as mayor, Goff held overall rates increases to 2.5 per cent. The regional petrol tax of 11.5c a litre at the pump allowed him to drop an interim transport rate, which he replaced with targeted rates for the environment and water quality.

Goff has said a 3.5 per cent rates rise is the responsible way to deliver the things the city desperately needs.

Goff’s main rival, John Tamihere, has promised to freeze rates for three years, saying it would cost $86.6m a year — a 1 per cent saving across council and council-controlled organisations (CCOs).