Background

What are rates remissions?

Essentially rates remissions are reductions in rates based on meeting certain criteria. It’s like tax exemptions that reduces the total income tax paid.

Why are rates remissions needed?

Rates are calculated using factors listed in the Local Government (Rating) Act. These factors relate just to the property location, value, size and/or services provided This can sometimes this can lead to rates that we consider unfair based on the circumstances, or when paying the rates would result in extreme hardship.

Why has this policy been reviewed?

Before 2022, the city and district councils in our region collected rates on our behalf. This meant that most of our rates remissions followed the policies of the relevant city or district council. As a result properties across the region were treated differently by us, depending on their location.

In 2022, we started collecting our own rates, but agreed to continue applying the existing city and district council remissions policies for two years, or until a new policy had been developed.

This review is to develop a policy that treats properties across the region in the same way and reflects our own principles, objectives, and priorities.

Having a separate policy for Māori Freehold Land makes it easier to distinguish between the different types of land and the policies that apply.

What is proposed?

We propose to replace our existing Rates Remission and Postponement Policy, adopted in June 2022, with two new policies:

  • Rates Remission and Postponement Policy (All Land)
  • Rates Remission and Postponement Policy for Māori Freehold Land

Drafts of the two new policies will be available to read from 8th March 2024

Have your say

Project updates

Key Changes - All Land

Rates Remission and Postponement Policy (All Land)

Te kaupapa whakatārewa me te whakataha reiti (Whenua katoa)

People looking at plants

Summary of proposed changes

Whakarāpopotonga o ngā panonitanga tono

  • All land proposal 1

    Transition to new policies

    We propose to phase in the impact of higher rates, due to a loss of remissions, evenly over two years. Half the rates increase will be applied from 1 July 2024, and the full increase applied from 1 July 2025.

    Refer to Section 16 of the proposed policy for details.

  • All Land Proposal 2

    Contiguous properties treated as one unit

    We propose that from 1 July 2024, only rating units that meet all three of the legislated criteria will be treated as one rating unit.

    As a result of the changes, some of our ratepayers will no longer be eligible for a remission, which will mean an increase in their rates bill. Ratepayers affected by this would be eligible for the transition remission.

    Refer to Section 3 of the proposed policy.


  • All Land Proposal 3

    Priority Biodiversity Sites

    We propose a new remission category to recognise and encourage active management and protection of Priority Biodiversity Sites that have been identified by Council.

    Refer to Section 10 of the proposed policy for details.

  • All Land Proposal 4

    Incentives to establish native forests or wetlands

    We propose a new remission category to encourage the establishment of native forests or wetlands on newly retired pastural land.

    Refer to Section 11 of the proposed policy for details.

  • All Land Proposal 5

    Community, sporting, and not-for-profits

    We propose up to 100% of rates may be remitted on land where:

    • the ratepayer or long-term lessee is a not-for-profit organisation, that
    • provides sports, arts, or community facilities or services that benefit the public, and
    • no private financial profit is received by the members.

    Land used for galloping, harness or greyhound racing is not eligible.

    Refer to Section 12 of the proposed policy for details.


  • All Land Proposal 6

    Financial hardship

    Our June 2022 policy required ratepayers to be eligible for a financial hardship remission from their local council. This meant that some of our ratepayers were treated differently to others because of the different approaches taken by each local council.

    We propose removing this requirement and instead will assess the eligibility and circumstances of each ratepayer individually.

    Refer to Section 13 of the proposed policy for details.

Key Changes - Māori Freehold Land

Rates Remission and Postponement Policy for Māori Freehold Land (MFL)

Te kaupapa whakatārewa me te whakataha reiti mō te Whenua Herekore Māori (MFL)

Bird on a tree

Summary of proposed changes

Whakarāpopotonga o ngā panonitanga tono

  • Māori Freehold Land Proposal 1

    Definition of land covered by the MFL policy

    We propose to extend the definition of MFL (for the purposes of the policy) and we propose to extend the eligibility to include MFL where there is no identifiable trust, person or owner gaining any benefit from the land.

    Refer to Section 6 of the proposed policy for details.

  • Māori Freehold Land Proposal 2

    MFL being developed for economic use

    The current policy does not provide for postponements of rates, only remissions.

    We propose the option of postponements as well as remissions for proposed developments. Direction about how long the rates relief would apply is included.

    Refer to Section 9 of the proposed policy for details.

  • Māori Freehold Land Proposal 3

    MFL being developed for papakāinga or other housing or accommodation

    In the current policy, the period of remission was generally limited to five years or less.

    We propose extending the remission period beyond the usual limit of five years, in exceptional circumstances, provided the accommodation has not yet been occupied.

    Refer to Section 10 of the proposed policy for details.