Councils offer to help ease pain of rates

In theory the recession is over, but that doesn't seem to help when it comes to paying the rates.

Auckland City Council is offering a number of ways to help residents meet their obligations.

Included are a rebate for those on low incomes, postponement for those who are struggling at the present time, rates remissions and the possibility of waiving penalties for late payment.

Other councils in the Auckland region are offering similar options.

The rates rebate for 2009/2010 is part of a government scheme which applies to all local authorities. The maximum rebate in one year is $550, up from $530 in 2008/2009, and the income threshold is $21,910. The rebate varies depending on the number of dependants in the household, the household's gross income, and the rates levied by the council and Auckland Regional Council.

Auckland City Council is also offering a rates postponement, where you can put off paying for a while if you have cashflow problems. The drawback to this scheme is that the full amount, or at least the rebated amount, is going to have to be paid eventually.

All or part of the rates of some landowners may be waived providing certain criteria are met, such as rates for community groups, rates on Maori freehold land, and on property on some of the islands in the Hauraki Gulf.

And in some instances, such as redundancy or because the ratepayer has told the council that they will not be able to pay on time, penalties for previous late payment of rates can be wiped.

North Shore City Council offers similar help. They have a set of financial criteria for rates postponement, and look at every application on a case-by-case basis. And rather than offer a rates remission, they would prefer to talk to residents to try and work out a payment plan. They do not offer a penalty waiver for financial difficulty, although in cases of personal difficulty, where the rates have been overlooked, they will consider a waiver.

Waitakere City has a similar policy on penalty waiver, and again take applications on a case-by-case system.

Senior communications adviser at Manukau City Council, Helen Slater, says that although they haven't had any increase in the number of people asking for help with rates payments, they have noticed that there are more with rates outstanding, up 16 per cent on last year.

HELPING HAND

* All councils offer a rates rebate of up to $550.
* The income threshold for this is $21,910. Ratepayers who earn more than this may still be eligible, depending on the relationship between the rates level and income.
* The additional income allowance for dependants is $500 per dependant.
* Most councils have a rates postponement scheme, but the rates do have to be paid in full at some point.
* In certain circumstances councils may write off all or part of the rates.
* Penalties for late payment may be waived if there has been unexpected family or financial hardship.
* Visit your local council website for the payment options they offer, or call them.