Brown's rates rise hits 9.5%

Mr Brown has introduced the targeted rate to replace a motorway toll or fuel tax. Photo / Natalie Slade

Mayor says majority back his transport plan but poor will be hardest hit by new charge.

Auckland households are facing a steep rates rise of about 9.5 per cent to pay for Mayor Len Brown's latest budget plan.

The mayor has released some details of the plan he outlined last Thursday, which included a general rates increase of 2.5 per cent and a targeted rate of about 4 per cent to top up spending on transport.

But because of new valuations and a lowering of business rates, it has emerged the combined impact of the general and targeted rate on households will be in the region of 9.5 per cent. This is a steep increase from an earlier 5.6 per cent average rates rise for households.

Mr Brown did not say what the latest average household rates increase would be, but gave the example of a $750,000 property, where the combined rates would rise from $2160 to $2365. He said this was a rise of $3.94 a week - equivalent to a 9.5 per cent rates rise.

The combined impact of the general and targeted rate on households will be in the region of 9.5 per cent

The $99 flat charge for the targeted rate will have a bigger impact on poorer suburbs, where rates will rise by 11.5 per cent for houses valued at $500,000 - well below the average sales price of $804,282 recorded by Barfoot & Thompson last month.

Mr Brown has introduced the targeted rate to replace a motorway toll or fuel tax, which was included for consultation in the draft 10-year budget and which the Government has repeatedly said it does not support. Both require legislation and would take years to put in place.

He said the targeted rate was in direct response to the majority of Aucklanders saying they are prepared to dip into their pockets to fix the region's transport problems. Submissions on the draft budget found 27 per cent support for the fuel tax and higher rates option.

Councillors will meet tomorrow and Friday to consider Mr Brown's latest budget plan and make final decisions.

North Shore councillor George Woods said the targeted rate of $99 for residential and $159 for business was never signalled in the brochure that went to each home and business across Auckland. A targeted rate for transport of $58.99 was buried in detailed budget documents, he said.

Mr Wood said councillors have been left in limbo for five days trying to get information from council officers, saying today's details raise more issues and questions.

A mayoral spokesman said the council had conducted the most comprehensive budget consultation process in New Zealand.

"Aucklanders provided very strong feedback during that process that they want the council to fix Auckland's transport issues and they are willing to pay to ensure that happens. The council's own professional and legal advisers are confident that what is being proposed is well within its ability to make this decision following the consultation already undertaken."