Rates cap is a Taxpayers’ Union wet dream and your red flag

Government announces 4% council rates rise cap

The government’s long-awaited rates cap will be a variable target band, and would be enforced by a new regulator.

Likely starting with minimum increases of two percent and a maximum of four percent, the cap would take effect from 1 January 2027.

It was not clear from the initial written statement how often the target might change, or exactly how it would be calculated, only that this could include “indicators like inflation at the lower end and GDP growth at the higher end”.

The rates cap alongside the dissolving of Regional Councils is a Taxpayers’ Union wet dream.

So option 1 of the new councils is an urban vote, a town vote and 3 rural votes with the deciding process being a majority vote out of 5.

Option 2 is a geographically weighted vote that gives urban 70%, Town 15% and the 3 rural votes 5% each.

Option 1 sets up the rural sector to have all dominance, Option 2 weights it to the urban areas.

Which voting option will the Rural friendly National Party ensure passes?

The Rates Cap has been a Taxpayers’ Union talking point for 2 years because a strangled local democracy process that can’t maintain assets has less chance of fighting development – this is a power grab by the Right!

Implementing a rates cap, will lead to a firesale of local infrastructure Councils can’t afford any longer!

Rather than a rates cap, why not have the Government pay rates on Crown land, rebate GST on rates and construction materials used in a council area, and rebate GST from tourism spending in council areas!

The irony here is that the only reason rates are going up is because of Government pushing costs onto local council!

The Government’s replacement for 3 waters is going to cost $48 billion!

Why aren’t voters angry at the Government for pushing extra rates costs onto their local council rather than blaming their local councils?

Taxpayers’ Union have earned their fees to have manipulated you so utterly.

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