This week’s good news
Saturday, 7 May 2005
In information provided by Local Government New Zealand, the Council has been informed that from next year’s budget the rates rebate income level will increase from $7,400 a year to $20,000.
The City Council, along with Local Government New Zealand (LGNZ), has made several submissions to the government seeking to have the limit raised, the last time during the previous term of Council.
At present people whose income is less than $7,400 can qualify for up to $200 off their rates.
Strategy Manager - Finance, Steve Paterson, says the low income level is “totally inadequate and we have argued to increase it to an appropriate level.”
In the current year less than 50 people have qualified for a rebate under the present scheme.
“Depending on details yet to be announced by the government, this number should significantly increase from July 1, 2006,” Steve says. “Under the new scheme people could qualify for up to $500 off their rates if their income is less than $20,000.”
LGNZ President, Basil Morrison, says local authorities acknowledge that paying rates has been difficult for constituents who have assets but low income. The announcement will help that group of people, particularly superannuitants, who own their own home.
He emphasises that, in recent times, additional responsibilities and new expectations from communities have placed many Councils under funding pressures.
“LGNZ is having discussions with the government about whether new funding sources other than property rates are needed,” he says.
