Auckland Council considers rates transition options

Auckland Council is to consider seeking government support to ensure the move to a single rating system is fair and balanced.

A single rating system based on capital value was part of the legislation that created the new Auckland Council.

Auckland Council has already agreed on an overall rates increase of 3.6 per cent in the coming year. However the move to a single rating system means that the impact on individual ratepayers will differ significantly.

The current transition policy would mean that 190,000 property owners could face rate increases of more than ten per cent.

In a proposal to the council’s Strategy and Finance Committee, the Mayor suggests the Minister of Local Government be requested to amend the legislation (by an order of council) to allow a capped and phased approach to the rates transition.

In a report which will be considered by the committee this week, Len Brown seeks a ten per cent capped approach for residential, farm and lifestyle properties offset against those with decreases over a three-year transition period, and a phased approach for business.

“Overall the council is projecting a low 3.6 per cent increase. However, as you move from seven different systems to a single rating system there will be different levels of change for different property owners,” says the Mayor. “I support a system where residential ratepayers face no more than a ten per cent increase as we go to a single system.”

“The decision to move to a single rating system based on capital value was one Auckland Council had no say in,” says Len Brown. “Making sure the transition is implemented in a fair and balanced manner is something we are determined to ensure. We now seek an amendment to the legislation to make sure this happens.