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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It good. Councils will have to become less bloated to save money for actual rate payer services.
Another piece of sound policy from the Coalition Government.
That’s silly Bob.
Ok thanks CG.
My income has had a 3% rise in the last 3 years. I haven’t managed to budget even though I’ve had some unexpected large expenses.
Why can’t councils do the same? It’s ludicrous that they require 14-17% extra (on top of additional inflow from population increases) every year.
I’ve had to live within my means, forgoing nice-to-haves, about time councils do the same.
Its “ludicrous” because cheap ass Kiwis like you keep thinking you can enjoy a first world country without paying for it.
And it’s because of cheap ass Kiwis that we have an enormous infrastructure deficit.
Which is why rates NEED to increase to pay for the things the Boomer generation never did.
The rampant stupidity on this is breathtaking.
“Those cancer treatments were expensive, but now I’ve decided to not pay for them I can buy more smokes”.
We’ll see you in 10 years, on the cover of the herald, looking grumpy with crossed arms complaining about potholes, leaky pipes and broken roads and wondering how it could have happened…
Cretins.
You are totaly correct the dump people cant see the real problem of providing basic things like water .The Government is taking the water away but the current rates will not go down ,but we will now get 3 bills instead of 2 .Council ,regional Council and a water bill .2K of my current rates bill is 2 waters .So instead of paying 5k a year I should end up paying 3k to council .When they started charging per bag for rubbish collection my rates did not drop and I still get charged for rubbish collection even though I pay $6 per bag .To add insult to injury I also pay for commercial rubbish removal from the industrial and retail businesses .I dot own a business so why am I subsidising them .
Well said Bg.
How many roads or infrastructure projects have you had to undertake? Everything infrastructure related has inflation that exceeds the average. Councils won’t be able to build anything with a cap. This hasn’t worked anywhere they have tried it, why would it work here????
How many Raised Crossings have I funded? Cycle lanes that non one uses (and I’m a cyclist)? How bloated is the council council payroll? How many diversity hires have they employed?
Good one ImR. As someone with an empty head you are able to accurately prophesy how similar people will react. You are a fine weathervain so keep it up.
Just for handy summary which we will have to keep referring to so we get the full picture.
https://www.rnz.co.nz/news/political/580070/regional-councils-demise-the-plans-timeline-and-thorny-issues
So is this cap before or after inflation .With inflation running at around 3% not much will be done .Just shows how fucked the TAXPAYER Union and the government really are .Also this is not due to kick in till 2029 at the same time as the Cheery built ferries dont arrive .By then this lot of scum will be long gone and some other suckers will have to deal with it just like the 12% hike in fuel tax after the next election .