9 May 2013

Auckland residential rates explained

Auckland is in the second year of a three-year transition to a new single rating system, required by the government as part of the move to one council.

A single rating system means properties in Auckland of equal value must pay equal rates, no matter where they are in the region.

At the council’s request, this transition is being made over three years, and any increases are capped at 10 per cent, to reduce the impact on ratepayers.

Because rates in the seven previous councils varied, this year some people’s rates will go up and some will go down. The same will occur again next year.

On average, rates in Auckland will increase by 2.9 per cent this year, down from an average 3.6 per cent increase the previous year. In the five years prior to amalgamation, rates increased by an average 5.7 per cent a year.

Because of cumulative savings in the council’s operational budgets – now at $145 million a year – Auckland’s rates increases have been lower every year for the past three years.

Average rates increases in the Auckland Region 2005 – 2013
2010: 9% forecast rate increase from Auckland Transition Authority
2011/2012: 3.9%
2012/2013: 3.6%
2013/2014: 2.9%

National average rates increasers 2002- 2012 – 6.8%

Auckland Council operational savings 2011 - 2013

2011/2012: $81 million
2012/2013: $50 million - $131 million cumulative
2013/2014: $14 million - $145 million cumulative

Details of the Mayor’s report on the proposed Budget – Annual Plan 2013-14 is available at http://www.aucklandcouncil.govt.nz/SiteCollectionDocuments/aboutcouncil/committees/strategyfinancecommittee/meetings/strategyandfinancecomagadtwo20130509.pdf

ENDS

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