Just over a million dollars in rates are unpaid in Masterton, a 10% increase on the same time last year.

A report to the council’s Audit and Risk Committee has laid bare the facts and figures surrounding the district’s rates arrears at the end of the 2024-25 financial year, with just over 700 properties having outstanding rates bills.

Across these properties, the average rate arrears was $1576, up from last year’s $1433. More than 100 ratepayers owed at least $3000, and 16 owed more than $7000. 

The report said legal processes were underway with eight properties. 

General manager of finance David Paris, who wrote the report, said the continuing difficult economic conditions had not translated into the council’s rates arrears blowing out, with the number of properties in arrears dropping from last year. 

He said continuing to hold rates arrears under 2% of rates levied was considered a good result.

“Masterton ratepayers are doing better than many other areas and the uptake of the Government Rates Rebates scheme remains strong,” Paris said. 

“This scheme is assisting many of the lowest income, property owning residents of Masterton.” 

Of the 13655 rated properties in Masterton, 1235 applied and were eligible for rates rebates under the criteria established by the Department of Internal Affairs. 

This resulted in $900,000 of rates being paid by the Government on behalf of qualifying ratepayers in the 2024-25 year. 

Households eligible for a rates rebate can have an income of up to $32,210 to get the maximum rebate amount. 

SuperGold cardholders and their households can have income up to $45,000 and get the maximum rebate amount. 

The current maximum rebate is $805. 

Paris said staff had been actively engaging with ratepayers who were in arrears, with emails and letters and phone calls that encouraged avoidance of penalties and setting up regular payment arrangements to clear arrears over time. 

“Every property with arrears problems will have some unique circumstances which staff try and work through to help the ratepayer meet their obligations. 

“Ultimately, council will invoke legal steps to initiate a rating sale as the last resort if the ratepayer cannot or will not pay.” 

Meanwhile, in South Wairarapa, a report to its Assurance, Risk, and Finance Committee showed there was $883,000 in rates arrears at the end of June. 

This was a 30% increase on the same time last year. 

In total, 392 properties were in arrears, with the average amount owning being $2253. 

Neighbouring Carterton District Council does not include information on quarterly rates arrears in its Risk and Assurance Committee reports. 

-LDR is local body journalism co-funded by RNZ and NZ On Air.

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