July 1 brings higher rates and water bills for Auckland households; regional fuel tax to go

Aucklanders will pay less for petrol from July 1. Photo / 123RF

The cost of living will rise for Auckland households on Monday when higher rates and water bills kick in.

But there’s also some good news with the 11.5 cents per litre regional fuel and diesel tax going, saving a Toyota Corolla driver about $5.75 every time they fill up.

From July 1, Auckland Council is raising rates by 6.8% and its water business, Watercare, is raising water bills by 7.2%.

The increase in rates and water bills will take the weekly cost from $94 to $100, an extra $6, or $300 over the next financial year.

All up, the average household will pay $5238 a year for council services, and water and wastewater services.

Rates are going up by $6 a week for the average Auckland household from July 1. Photo / Alex Burton

The new costs were approved in May, and formally adopted at the council’s governing body meeting yesterday.

Aucklanders can, however, breathe a sigh of relief after Mayor Wayne Brown reduced earlier plans for a bigger increase.

In particular, Brown successfully negotiated an agreement with the Minister for Auckland Simeon Brown, to avoid 25.8% hike in water bills this year.

This was achieved by taking Watercare’s debt off the council’s books, allowing it to borrow more money, rather than passing the cost onto ratepayers.

Auckland households are also better off at the start of the 2024 “Rating Year” than other big cities. In Hamilton, rates are rising by 16.5%, in Tauranga (13.1%), Wellington (16.4%), Christchurch (9.95%), and Dunedin (17.5%).

Auckland Mayor Wayne Brown successfully negotiated an agreement with the Minister for Auckland Simeon Brown, to avoid water bills rising by 25.8%. Photo / Michael Craig

What the changes mean for residents in the country’s biggest city from July 1:

• Rates will rise by 6.8% and water bills by 7.2%, taking the combined weekly cost from $94 to $100.
• The Auckland Regional Fuel Tax which has been in place since July 1, 2018 will end after five years. The tax raises about $150 million a year.
• The fuel tax of 11.5 cents per litre on petrol and diesel will be gone. That means the driver of a Toyota Hilux will save around $9.20 every time they fill up, while a Toyota Corolla driver will save around $5.75.

Kiwis still have to wait a few more weeks to see the Government’s tax cuts come through, but from July 1 parents and investment property owners are due for some relief.

New and expectant parents are the big winners.

• The maximum weekly rate for paid parental leave will increase from $712.17 to $754.87 gross per week.
• Families will also be able to receive early childhood education tax credits of up to $75 a week.

Those with residential investment property are also in for a boost.

• The Government has reduced the bright-line test to two years for all properties after the previous Government increased it to 10 years.
• The change means that people who sell residential investment property within two years of purchasing it will have to pay tax on any gains received. If you sell it after three years though, you won’t be taxed.

The Earthquake Commission’s Disputes Resolution Scheme also begins on July 1. This is an independent process for people who want to dispute the outcome of a natural hazard insurance claim.

And finally – bad news for hikers. From July 1, Great Walk hut and campsite prices will increase by 18%, except for Paparoa, which will increase by 6%.