KEY POINTS:
Low-income ratepayers have snapped up a $40 million sweetener offered by the Government on 2006-07 local rates bills.
The offer was made last July when the Government expanded its rates rebate scheme to give as much as $500 off rates bills.
The maximum rebate was increased from the $200 offered for the past 20 years.
The eligible income limit also rose from $7400 to $20,000 a year and the allowance for a dependant increased from $156 to $500.
A Government spokesman said the public response showed changes to the scheme were successful.
By yesterday, more than 87,000 households had received $40 million in rebates.
In the previous year, 4200 applications were received for a total payout of $700,000. In developing the scheme, Government officials estimated about $50 million in rebates would be taken up, based on the response to other new benefits.
"We anticipate applications will start falling off," said the spokesman.
But it was hoped that all who qualified for the rebate would receive one and people were urged to apply to their local councils for the 2006-07 rates before the end of the financial year on June 30.
The spokesman said that as was normal with a programme like this, it would be reviewed.
Local Government New Zealand president Basil Morrison said he would be delighted if the full rebate quota was taken up.
"Even if you are only eligible for $160, it is a respite for ratepayers and it is money that is coming back into communities."
However, he said councils had costs in gearing up to handle the greater number of applications and pass them on to the Department of Internal Affairs for approval.
On the North Shore, the number of rebates granted dwarf those for 2005. During the previous year rebates were approved to a total value of just $63,209. This year 3114 ratepayers received a rebate to a value of $1,482,984.
But councils still reckon a lot more of their residents could qualify.
Thames-Coromandel District Council spokesman Peter Hazael said the district had a high proportion of residents who were retired or on fixed incomes.
Rates had risen on average by 9 per cent last year. The council thought about 4500 people would be eligible for a rebate.
About 45 per cent of residents earn less than $20,000 compared with 43.2 per cent nationally. Only 1300 had received rebates.
Auckland City Council thought 7500 people were eligible and 4181 applied.
North Shore City councillor Gary Holmes said the scheme was aimed at easing the rates burden on superannuitants and low income families.
He said the highest income level passed on for rebate approval was $41,000 a year with annual rates of $4189.
The income threshold to qualify for a rebate varies according to individual situations - councils have tables to show whether residents qualify.
For example, if a couple receive New Zealand Superannuation of $24,456 and their rates are $1746 or more, they are entitled to a rates rebate of $500.
A couple on New Zealand Superannuation whose rates are $1300 will receive a rebate of $203.
'It wasn't worth the stamps'
Some older ratepayers say the new rebates are not as generous as they sound.
Glen Innes pensioners Peter and Elsie Herbert got only a $6 rebate on a rates bill of nearly $1500.
"I thought it was a joke," said Mr Herbert. "It wasn't worth the postage stamps."
He said a review of his case by the Auckland City Council produced only an extra dollar.
Poverty Action Coalition chairman Percy Allison said people were hoodwinked into believing the $500 was across the board yet in one case a person got only $65.
"It was a big disappointment."
Waitakere pensioner Ray Williams said he did not apply.
"I think it's great for the poor people but a couple both on the pension are not eligible."
Howick-Pakuranga Grey Power vice-president Peter Warnes said the rebate seemed to be tailored so that two in a house both on the pension were not going to get it.
He thought the rebate should be extended to pensioners in modest houses to encourage them to stay independent living in their own homes.
North Shore pensioner Gordon Buttery said he did not apply ... "because I know these things look good on paper.
"But I'll box on until I can't afford the rates."
He pays his rates in two-monthly instalments.
"I couldn't do it the other way round and pay it yearly.
"It's good some people got some money because they're really on the bones of their bottom."
Grey Power Auckland chairman Jens Meder said he knew of members who had benefited and were grateful.
Grey Power North Shore chairman Alan McCulloch said he had heard from a lot of people whose rebate was $50 or less.
