Hike In Rates: Happy Or Not? Don’t Tell Us, Tell Auckland Council

It’s your chance to tell Auckland Council whether you are happy with the increase in rates it has proposed for 2024-2025 and over the next decade.

The proposal is a part of the council’s Long-term Plan 2023-24 that is open to public feedback till March 28, 2024.

The plan includes a total rates increase for the average-value residential property of about 7.5 per cent, translating to nearly $271 a year ($5.21 a week). The average-value business is expected to see an increase of approximately 8.9 per cent, amounting to $1,690 a year ($32.50 a week).

You also have a chance to choose between the “central” option of a 7.5 per cent hike for the year beginning June 1, 2024 or the do-less-pay-less option of a 5.5 per cent rise, or the pay-more-get-more option of a 14 per cent increase.

You can read the full proposal and submit your feedback at akhaveyoursay.nz/ourplan, where a Hindi translation of the document is also available.   

“I can reassure people that no decisions have been made yet,” Mayor Wayne Brown says. “We’re barely halfway through the process, and there’s still a way to go before we adopt the Long-term Plan.”

Under the central proposal, the annual rates increase for the average-value residential property is anticipated to be 7.5 per cent in year one, 3.5 per cent in year two, eight per cent in year three, and not more than 3.5 per cent for the years following year three.

The alternate scenarios up for your feedback include – 

Pay Less, Get Less Scenario

In this scenario, residents could experience lower rates increases but with reduced investment and fewer services. The proposed average rates increases for residential ratepayers would be around:

• 5.5 per cent in year one
• 3.5 per cent in years two and three
• No more than one per cent above the Consumer Price Index (CPI) inflation in the subsequent years.

Pay More, Get More Scenario

For those willing to pay more for enhanced services and faster investments, the scenario could require average rates increases for residential ratepayers of:

• Up to 14 per cent in year one
• 10 per cent in years two and three
• 5 per cent in the years after.

Proposed Changes for 2024-2025

Additionally, the proposed budget package includes changes to various aspects, including Long-term Differential Strategy, waste management services, Climate Action Transport Targeted Rate, Natural Environment Targeted Rate, Water Quality Targeted Rate and Targeted Rates Business Differentials.

Long-term Differential Strategy

The proposal suggests discontinuing the Long-term differential strategy, resulting in businesses paying about 31 per cent of the general rates requirement in 2024-2025 and future years.

Waste Management Services

A 4.3 per cent increase in the combined targeted rates for standard waste management services is proposed for the financial year 2024-2025.

Climate Action Transport Targeted Rate (CATTR)

The CATTR is expected to increase by an average of 3.5 per cent for the financial year 2024-2025.

Natural Environment Targeted Rate (NETR) and Water Quality Targeted Rate (WQTR)

The NETR and WQTR are proposed to resume and extend to 2033-2034, with businesses' contributions rising from 25.8 per cent to 31 per cent for the financial year 2024-2025 and future years.

The final rates are scheduled to be adopted in June 2024, taking into consideration any cost changes since the long-term plan consultation, including more up-to-date forecasts on inflation.

The Auckland Council is encouraging residents to provide feedback on the proposed changes through the online feedback form available on the official website.