The Rates Rebate Scheme was established in 1973 to provide a subsidy to low-income homeowners on the cost of their rates. The Government has increased the rates rebate thresholds – more people than ever before will be eligible for the rebate.
The following changes came into effect on 1 July 2010:
- Maximum rebate increased to $570.
- Income threshold increased to $22,340 (incomes of up to approximately $32,000 may still qualify).
- Additional income allowance for dependants has remained the same at $500 per dependant.
(This means the income threshold for a full rates rebate for the 2010/2011 year is $22,340, and is increased by $500 for each dependant in the household.)
Homeowners can apply for the new rebate from 1 July 2010, for the 2010/2011 rating year.
Visit the DIA (Department of Internal Affairs) website for more information – including an application form and an eligibility calculator.
Rates Remissions
Various types of remissions are available for different types of properties and community groups. Remissions may be granted in the following circumstances:
More than one rating unit used for the same purpose. Offers remission of uniform annual charges for farming operations on more than one rating unit being operated as one farming operation and only one residential dwelling is situated on the combined properties.
School Wastewater Utility Charges. Offers remission of pan/urinal charges in excess of the minimum number required pursuant to the Building Code.
Voluntary Protected Land. The object is to grant some rate relief to ratepayers who voluntarily protect land for natural, historic, cultural or conservation purposes. The land must be subject to one of various formal voluntary covenants or agreements to protect the land as outlined in the policy.
Organisations Benefiting the District. The Organisation must benefit the residents of the District by its existence in the District. In the Hibiscus Coast the remission will not be granted unless there are exceptional circumstances. Types of organisations who may apply for remission are: sporting clubs, public halls and libraries and organisations whose principle objective is to promote education or health.
Rates on multiple owned Maori Freehold Land. The objective of this policy is to identify some person(s) to take responsibility for the rates and to grant relief for historic arrears if future rates are paid. Previous years rates may be remitted if an undertaking to pay the following three years rates is complied with.
Hardship resulting from a water leak. This policy is to assist ratepayers who have excessive water rates due to a water leak such that the water rates account is not less than three times larger than the recent average consumption. Upon proof of the leak, as evidenced by the repair invoice, then 50% of the “excess” consumption may be remitted. Payment of the remaining amount owing may be arranged over a twelve month period.
Land affected by natural calamity. Applies where use of the land has been detrimentally affected by natural calamity. Council may, where it considers it fair and reasonable, remit whole or part of the rates. To gain relief the ratepayer will probably have to evacuate the land for a period of time.
Penalty remission on compassionate grounds. If a ratepayer has a good payment record and pays the relevant instalment as soon as possible then remission of penalties may be applied for if the late payment was due to family tragedy, hospitalisation, accident etc. Penalties may also be remitted if a ratepayer has had an excellent payment record for three years or more.
Penalty remission if arrangement for payment of arrears is complied with. Remission may be granted where a negotiated arrangement for payment of arrears has been entered into and complied with.
Remission of Uniform rates within a commercial subdivision. The land must be classified as being for use or development exclusively or principally for commercial or industrial purposes. Any remissions will be for a maximum of two years or until the property is sold, title transferred or leased, whichever is the sooner.
Residential Properties in commercial/industrial area. Some remission may be granted where the rateable land value has been affected by the potential use of the property.
Large Rate Increases. To ease the transition from land value based rating to a capital value base. Subject to conditions, the amount remitted is the greater of 20% increase or $1,500, but not less than $1,500.
Uninhabited Islands. Remission of rates on isolated islands which are not capable of habitation or economic use.
Miscellaneous Circumstances. To avoid the cost of collection of rates where it is inequitable or uneconomic to do so.
Contact us for more information on the above rebates.
Rates Postponement
Rates postponement for hardship
This policy is to assist residential ratepayers experiencing extreme financial hardship affecting their ability to pay rates. The rating unit must be owned and occupied by the ratepayer. The financial income and assets of the ratepayer are relevant and considered.
The ratepayer must pay the first $500 of rates per annum but may postpone payment of the balance subject to conditions. A fee will be charged on postponed rates equal to the administrative cost and financial costs incurred by Council as a direct result of the postponement.
The main criteria for our Rates Postponement for Hardship Scheme are:
- Applicant must have owned the home for 2 years.
- The property must be the ratepayer's permanent place of residence.
- The property is used solely for residential purposes.
- The ratepayer must have at least 80% equity in the property.
- Annual loan servicing must not exceed 30% of the household gross income.
- Total household assets (excluding the property, a car and normal household chattels) do not exceed $10,000.
- In the opinion of the Council, the ratepayer is likely to suffer financial hardship after payment of the rates.
- The ratepayer must pay the first $500 per year.
- The amount postponed may not exceed $20,000 (although this is at the discretion of the CEO).
Postponed Rates – Equity Scheme
The Rates Postponement Scheme – Equity Scheme is an option that allows you to postpone the payment of your rates if you are over 65 years old. It gives customers the option of postponing payments for a fixed period of time, or leaving them for their estate to take care of.
The scheme involves one-off costs and other incidental fees that may be required to process an application – these may all be added to the initial postponed amount. As well as accrued rates payments, other annual charges include interest (at Council's borrowing rate), a levy of 1% for the management fee and a levy of .25% for a reserve fund (unrecovered money).
The main criteria for our Rates Postponement Scheme – Equity Scheme are:
- Applicant must have owned the home for 2 years.
- Available for residential properties only.
- Applicants must reside at the property.
- All owners must apply.
- Not available for family trusts.
- The scheme is not income related.
- The property must be fully insured during the time that there are postponed rates owing.
- Limited to a maximum 15-year term if aged under 65 at the time of application.