Business to pay same proportion under new system

The Mayor has confirmed that business will pay the same proportion of rates as under the combined legacy councils and that rates differentials will reduce over the next decade.

In addition, thousands of businesses in Auckland will receive a rates reduction as a result of changes to the business rating system.

"The government's creation of Auckland Council required a single rating system across the region. We have tried to be as fair as possible by keeping the same proportion coming from businesses as under the old councils," says Len Brown.

"For some businesses, that will mean an increase. However our policy means 11,000 businesses across the region will get a reduction in rates.

“What's more I am committed to reducing the business differential each and every year for the next ten years.

“And to ensure the government’s changes are manageable, any rise in business rates rises will be staggered over a three-year period.

“Auckland’s legacy councils all had different business differentials and the ratio of 2.63 to 1 will be retained meaning business will continue to contribute the same proportion of rates revenue across the region as it did under the old councils.”

The council is proposing average rate increases in the coming financial year of 3.6 per cent, which compares with government figures showing an average eight per cent annual increase across legacy councils between 2002-2010.

"We are focused on managing the transition fairly and keeping costs down for Auckland businesses and homeowners,” says Len Brown.



Note to Editors: Auckland Council CFO Andrew McKenzie is available to comment on individual business rates increase.