More than 100,000 households claim rates help

More than 100,000 people have claimed a rates rebate so far this year.

The Rates Rebate scheme helps lower-income household who are struggling to pay their council rates.

From 1 July 2026, the maximum rebate will increase from $805 to $830. The income abatement threshold for SuperGold Cardholders will increase from $45,000 to $46,400.

The income abatement threshold for other ratepayers will increase from $32,210 to $33,210.

A household without a SuperGold Card with rates of $2000 a year can get some level of rebate until they earn $42,026 a year.

Every household only earning NZ Super with rates of at least $2000 will be able to get the full rebate.

The Department of Internal Affairs said for the current 2025/26 rating year, it had refunded councils 105,698 rates rebate claims.

That covered the period between July last year and March.

In the previous full year, there were 104,344 claims refunded.

"That means with a few months to go we have already exceeded last year's claims."

Local Government Minister Simon Watts said: "We know the cost of living is putting immense pressure on Kiwis, with rising rates adding a further burden to household budgets.

"The government is committed to easing cost-of-living pressures for Kiwis. By making increases to the Rates Rebate Scheme, we are delivering targeted support to low-income ratepayers in need of assistance with paying their rates bill."

Wellington City Council said it had processed 2223 rates rebate applications so far this year and had 244 active payment arrangements.

Hamilton City Council said it had approved 2908 in the current year, up from 2697 in the whole of the previous year. It had also approved 509 under its own council scheme.

Auckland Council said it had approved 14,500 so far this year, 14,800 in the last full year and 16,000 the year before that. It also had 1508 active payment plans in place.

FinCap, the network for financial mentors, said it was seeing an increasing number of debts to local government among people who sought help but a drop in the median amount of the debt.

"FinCap hears regularly from financial mentors who have assisted people with rates arrears as one of their multiple cost of living pressures. Those on fixed incomes, such as super, being stuck financially are often mentioned in this context," spokesperson Jake Lilley said.

"The support approaches by councils for people who are having difficulty paying rates on time varies a lot across all the communities that financial mentors support. FinCap has recommended that councils look to the guidance in the framework for debt to government for all the debts they might create."

The Taxpayers Union's survey of councils showed the average rates bill across the country is now $3386, up $451 from the previous year. It said the highest average was in Porirua, at $5591, and the lowest in Otorohanga, at $2554.

The government is also working on a rates cap plan.

"Everyone is having to prioritise due to the tough economic times - councils are no different. They need guard-rails so that they can focus on prioritisation and make decisions about what it is best to spend their revenue on," Watts said.

"Councils effectively operate as monopolies, and we have seen year on year rate increases which ratepayers cannot continue to sustain. That's why we are introducing a rates cap to keep rates under control."

Details on the final rates cap model are expected to be announced later this year.

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