Monday, July 15, 2024

Rates rebate scheme to aid low income households

An estimated 100,000 low income households will be eligible for increased support to pay their council rates, with changes to the rates rebate scheme taking effect from 1 July, Local Government Minister, Nanaia Mahuta announced today.

The increases will apply to both the maximum value of the rates rebate, and the income threshold before abatements to the payment kick in.

“The government changes mean that rates subsidies for low-income New Zealanders are keeping up with the cost of living,” Minister Mahuta said.

The Rates Rebate Scheme is a partial refund to ease rates bills for low-income people. It provides financial relief for those who own their own home and live in that home. It includes people living in retirement villages, but does not apply to rental or holiday homes or commercial premises.

From 1 July, the maximum annual rebate increases from $665 to $700. The abatement threshold increases from $26,510 to $28,080 income for the year to March 2022.

The changes reflect movement in the Consumer Price Index during the 2021 calendar year.

“It is estimated that around 100,000 ratepayers will be eligible for government financial support to pay their rates during 2022-23. It is estimated refunds will be worth up to $56 million a year.”

“This will come as a relief to those individuals and families requiring assistance to meet the cost of their rates demands.

“It follows the government’s cost of living package last month, as well as increases to the winter energy payment, student allowances, Working for Families payments, Superannuation and benefits, and cuts to fuel excise and road user charges,” Ms Mahuta said.

More information is on council websites or here:

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