More low income households in the Ashburton District will be eligible for increased support to pay their council rates, with changes to the rates rebate scheme that took effect from 1 July.

Local Government Minister Nanaia Mahuta announced increases to both the maximum value of the rates rebate, and the income threshold before abatements to the payment kick in.

“The government changes mean that rates subsidies for low income New Zealanders are keeping up with the cost of living,” she said.

The Rates Rebate Scheme is a partial refund to ease rates bills for low income people. It provides financial relief for those who own their own home and live in that home. It includes people living in retirement villages, but does not apply to rental or holiday homes or commercial premises.

From 1 July, the maximum annual rebate increased from $665 to $700. The abatement threshold increased from $26,510 to $28,080 income for the year to March 2022. The changes reflect movement in the Consumer Price Index during the 2021 calendar year.

The Minister said around 100,000 ratepayers around the country will be eligible for financial support to pay their rates during 2022-23. It is estimated refunds will be worth up to $56 million a year.

“This will come as a relief to those individuals and families requiring assistance to meet the cost of their rates demands.

“It follows the government’s cost of living package last month, as well as increases to the winter energy payment, student allowances, Working for Families payments, Superannuation and benefits, and cuts to fuel excise and road user charges.”

Around 800 people in the Ashburton district received a rates rebate for the 2020-21 financial year, and applications have just closed for the 2021-22 year.

Chief Executive Hamish Riach said the level of the rebate varied, depending on personal circumstances.

“So some people might qualify for the full rebate or for a lesser amount. If you’re not sure, then you should call our Customer Services team on 03 307 7700 or drop in to the Council office and find out.”

People have to apply annually for the rebate and those who want to apply for a rebate in this new financial year can do so any time from late July 2022 until 30 June 2023.

As part of the rebate application process, people need to prove their income level with a summary of earnings from the IRD. It must relate to the period 1 April 2021 to 31 March 2022.

You must be:

* The person who pays the rates on the property that’s your home
* Living in your home
* Listed as the ratepayer in Council’s rating information database

You cannot apply if:

* Your property is mainly used for commercial activities, such as farming or business
* Your property is a rental property or holiday home

Most retirement village residents, including people who live under a licence to occupy agreement, can apply for a rates rebate.

See our rates page for more information.