Rates Rebates
Next year you could be eligible to to get up to $550 off your rates bill.
Some older people are still missing out on savings, even though they're eligible.
People on low incomes, which includes many people on national superannuation, are eligible for rebates on their local authority rates and water rates. A typical couple on national super could get up to $550 back each year. This assumes they have little other income and pay at least $1000 in rates; a common scenario for older people.
Next year
There are small cost of living adjustments for the rating year which began 1 July 2009. The maximum rebate is now $550 and the income abatement threshold is now $21,910 (although higher incomes can continue to get rebates). If you have dependent people in your household the income threshold is increased by $500 per person. The deadline for apllications will be 30 June 2010.
This year
Applications for the 2008/09 rating year closed on 30 June 2009.
How to apply
Apply to your local council for a rates rebate. You will need:
- Your rates notice (including regional rates if billed separately)
- Information about your income (before tax) for the tax year ended 31 March 2009
- Information about what your partner/joint homeowner’s income, if he/she was normally living with you on 1 July 2009.
If you are the owner of an owner-occupier flat, and your name is not on the rates bill, you must have a letter from the person whose name is on the rates bill stating what the total rates are, and how much you pay towards them. If you are in a retirement village, although you may pay a rates component as part of your fees, you are unlikely to be eligible for a rebate. We say this is unfair and commented on this in a submission.
Retirement villages
Age Concern New Zealand believes that in the interests of equity, the rates rebate should be extended to retirement village residents and that the cost of doing so is modest.
A Retirement Commission survey of retirement villages and their residents in December 2006 found over 60% had low income levels: 24% of residents had only their NZ superannuation to live on, while 37% lived “mostly” on their Superannuation.
The Retirement Village Association (RVA) completed a survey of their members in July 2008, to find out more about how rates are allocated within retirement villages. The average weekly rate bill for retirement village residents varies between $15.30/week in rural villages , $19.10/week in metropolitan centres and $19.30/week in provincial cities. The RVA estimates that extending the rebate to income-eligible residents would only cost taxpayers about $5.8 million annually.
Process
One way of ensuring that eligible village residents can get access to the rebate without having to amend the legislation is by having them complete an application form which can then be collected by the operator and sent to the Department of Internal Affairs for approval. The rebate can then be paid to the operator who credits the eligible residents’ accounts. This is a practical and easy to implement solution provided eligible residents are willing to share their financial information.
Comment
Age Concern New
The current maximum rebate is $550 - this is welcome but could be a drop in the bucket when all older people are being squeezed by rising living costs and some face rates bills of several thousand dollars.
Resource
LINK to the Department of Internal Affairs Rates Rebates information pages.
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