“In this world, nothing is certain except death and taxes.” If you are a homeowner, this of course includes rates. The common theme about rates this year has been the significant increases in levy rates set by most local councils in the Wellington Region.
The recent rates notices have caused concern for some sections of the community who are facing financial hardship and is something we have been fielding plenty of enquiries on.
There are some options you can investigate to help getting through such as the Rates Rebate Scheme run by the Department of Internal Affairs, the Rates Postponement or Remission scheme offered by some local councils, or assistance from Work & Income or the Ministry of Social Development.
Rates Rebate Scheme: Residential homeowners on low incomes may be eligible for a rebate, which is a partial discount on a rates bill – you pay less for your rates.
Factors used to determine if you are eligible include:
- you are the legal ratepayer for your property
- your property was your place of residence on 1 July 2024
- your property is not used principally for commercial, industrial business or farming purposes
- you apply between 1 July 2024 and 30 June 2025
You can apply for a rebate for the current rating year only. Find out more about who is eligible to get a rates rebate on the New Zealand Government website. The local council websites also have information on rebates.
Rates Postponement: The other option is rates postponement, which lets you stop paying rates. The council gets the accrued amount owed from the ratepayer’s estate or, if they move or sell, when they leave their home.
There are two types of rates postponement.
- “Financial hardship” postponement, which requires an applicant to show the council they’d have insufficient funds, after the payment of rates, for normal health care, day-to-day living expenses and home maintenance. There may be a requirement to pay some of the rates for that year and set-up a system of regular payments for future rates.
- “Optional” postponement, usually available to those 65 or over. Evidence of hardship isn’t needed, but some councils require applicants to meet with an independent adviser to discuss their options. There’s flexibility to postpone all or a portion of the rates, and for a fixed or indefinite period. Repayments can be made at any time without penalty.
Rates Postponement is also available if the home is owned by a family trust, you live in a retirement village, it’s Māori freehold or undeveloped land, or the land has changed its use (for example, from farmland to a residential property). Not all councils offer rates postponement and those that do may not offer both types. Check with your council to see what it offers.
The Government has other options for supporting homeowners with their rates payments: Contact either Ministry of Social Development or Work and Income