Will the changes to the rates rebate help pensioners in the Tararua District?
Will the changes to the rates rebate help pensioners in the Tararua District?
Limits for the Rates Rebate Scheme have been lifted, but not everyone is convinced it will help those worried about rates increases.
Minister for Local Government Kieran McAnulty announced last week the scheme, which is a partial refund for people paying rates to their local council, will be increasing froma maximum of $700 to $750, with the income abatement threshold rising to $30,100 annual income.
He says the adjustments match the 7.2 per cent rise of inflation in the 2022 calendar year.
Last month, in finalising its annual plan, the Tararua District Council approved an average rates increase for 2023-24 of 13.17 per cent.
Dannevirke Community Board member Terry Hynes, who last year spoke on the need for a review of the amounts, says the increase is good news.
He says there is also the situation where landlords are forced to increase rents as rates rise.
Terry Hynes believes income levels need to be reviewed annually on the rates rebate scheme. Photo / Leanne Warr
Kieran says the increase will help ensure that approximately 100,000 low-income homeowners are able to pay their local council rates for the coming financial year.
“More than 100,000 successful applications were paid out in 2022/2023. This year we hope to see even more eligible people apply. We know times are tough for households and we hope to let those who are struggling know that support is there for them,” Kieran says.
He adds that anyone who has any questions about their eligibility, or that of a family member, can get in touch with their local council or retirement village operator.
“Many members of our retired community could benefit from this. We want as many people to be able to save on rates as possible.”
Kieran says the changes, which kicked in on July 1, should come as a relief to those needing assistance to meet the costs of their rates and he “really encourages” all eligible people to take this up.
“The Government’s focus is on the things that matter right now, like helping New Zealanders deal with the cost of living. This scheme will support households to meet their living costs and take an extra bit of pressure off.”
However, a local ratepayers association believes it’s not enough.
A spokesman from Dannevirke Ratepayers and Residents Association says although increasing the limit is viewed as a great decision, he feels it doesn’t address the heart of the issue.
He says it doesn’t take into account the level of income in the Tararua District where the average wage, according to census statistics from 2018, was around $26,000, with a little under 10 per cent of the population earning more than $70,000 a year.
While he says the sliding scale, where households can earn up to a maximum of $54,000 to still be eligible for the rebate, is fine, he says it doesn’t really look at the increasing volume of the aged population.
It also doesn’t take into account the increases in living costs, insurance, fuel, food and other everyday costs for people across any community.
The spokesman says there should also be a couple of other elements, such as single income, those with dependents, or the elderly who may be on a pension and still need to work to supplement their fixed income.
