2025 Budget Provides Welcome Relief For Older Ratepayers
Local Government New Zealand (LGNZ) says that yesterday's Budget 2025 announcement of changes to the rates rebate scheme is a win for the community – particularly older people struggling to afford rates.
'This was always expected to be a tight budget due to the current economic conditions, so we're pleased to see the Government has opted to ease the financial pressure on older New Zealanders – many of whom are facing a cost-of-living crisis,' says LGNZ acting chief executive Scott Necklen.
'LGNZ has been advocating for the income threshold for rates rebate eligibility to be raised for low-and fixed-income property owners for some time. As a further step we'd like to see the Government investigate options for data sharing between councils, Internal Affairs and MSD to proactively identify households that qualify for a rates rebate, rather than waiting for people to apply.
'But an expanded rebate and new abatement threshold for SuperGold card holders is a great start.'
Scott Necklen says that local and central government are in full agreement that rates cannot keep rising at the level they have been, and that many councils need more funding levers to address pressing infrastructure needs.
'Rates are – and will continue to be – councils' main source of income, and play a vital role in councils being able to meet their community's infrastructure needs.
'It's a welcome relief to see the Government implicitly acknowledging that rates rises are inevitable due to the growing pressure on local government, especially in the face of councils' rising insurance costs, inflation and infrastructure needs.
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'We acknowledge that Government has already added some tools in our toolkit - such as moving from development contributions to development levies. New tools like this help keep rates at bay. But we need to keep working with the Government on more incentives for councils, so that ratepayers are not disincentivised by housing and wider economic growth,' says Scott Necklen.
Scott Necklen also acknowledged several other budget outcomes that will have an effect on local government:
Regional Deals: 'While regional deals have been touted by the Government as something that will help unlock funding and resource opportunities to support councils to improve roads, infrastructure and housing in their regions, it's disappointing to see that no funding is available to invest in the initiatives agreed as part of any future deals. If regional deals are to replicate the success of city deals overseas, they will need dedicated government funding.'
Transport: 'While it's great to see increased investment in rail and ferry initiatives, we also know there's a real need for widespread investment in our aging transport network. We're disappointed to see some reductions in transport funding. These costs will instead be covered by the National Land Transport Programme (NLTP), which creates additional pressure on the fund and on the transport network. Without additional tools or further funding, as a country we'll have to make tough choices soon around where we defer maintenance and leave it up to future generations.'
Recovery works: 'We're happy to see the Government commit extra funding to complete recovery works on local roads affected by the 2023 North Island weather events, as these communities continue to get back on their feet following widespread damage to their roading infrastructure.'
Funding to support local journalism: 'We're pleased to see the Government recognises the key role that local journalism plays in telling local stories, while raising transparency and awareness around community issues. This is particularly important for local elections later this year.'
LGNZ champions, connects and supports local government. We represent the national interest of councils across New Zealand to deliver more of what matters in their communities. LGNZ is involved in policy, reforms, programmes, and advocacy as well as providing advice, consultancy and training to councils and their staff.
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