An amendment to the Local Government (Rating) Act put through by New Zealand First’s Brian Donnelly will mean that private, not-for-profit, schools and early childhood centres will be put on a level playing field with other educational institutions.

“Under the present law, state schools do no pay rates on property. Neither do integrated schools even though they are not state-owned. Non-profit private schools are liable with an exemption of the first 1.62 hectares.”

“The present bill would have made things worse by reducing this exemption to 1.5 hectares,” explained Mr Donnelly.

“The vast majority of parents who send their children to private schools are not dripping in wealth. And yet they have to pay their taxes to the government, the government pays only 30% of the running costs of the schools, the parents have to pay fees for the rest, have to pay GST on those fees, then they’re socked for local taxes through rates and if that’s not enough, they have to pay GST on their rates.”

“The situation is blatantly unfair and it took New Zealand First to recognise it and do something about it,” said Mr Donnelly.

ENDS

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