Proposed changes to the Local Government (Rating) Act 2002 will reduce rating barriers for owners of Māori land who want to use and develop their whenua.

There is around 1.4 million hectares of Māori freehold land and much of it is unused or under developed.

“Owners of Māori land have aspirations to use and develop their whenua, but they face a number of unique challenges including unpaid rates arrears.

“This package of changes will break the deadlock where rates arrears prevents development from happening, and the emphasis will be more on enabling whenua to be developed in order to meet rating expectations, “ says Local Government and Māori Development Minister Nanaia Mahuta.

Under the proposal, local authority Chief Executives will have the power to write off rates arrears on all land (including general land) if they consider the rates are unrecoverable, including rates arrears inherited from deceased owners of Māori land. Most of the rates arrears on Māori freehold land are on unused land and the majority of this is from non-payment of penalties rather than the original rates bills.

Minister Mahuta says, “While the retention of Māori land is paramount, inheriting rates arrears on land that can’t be sold discourages landowners from engaging with their whenua.

“This proposal would give current owners a ‘clean slate’ so they can start afresh. Owners will be able to bring proposals to their local council without the fear of having to pay rates arrears before starting any kind of development.”

Most unused Māori land will be made non-rateable, including Ngā Whenua Rāhui kawenata which is Māori land that has been set aside for conservation purposes. This will mean any rates arrears on unused or Ngā Whenua Rāhui kawenata will be removed.

“At present, the rating policy on wholly unused land or Ngā Whenua Rāhui kawenata varies from council to council. The proposed legislative changes will ensure that there is greater consistency across the country and provide greater clarity on what kind of Māori land is non-rateable”, says Minister Mahuta.

To encourage the development of Māori land, including the building of houses, a statutory rates remission process will be put in place for Māori land under development.

“This will encourage local authorities to provide landowners some rates relief while owners are in the transition phase of making their whenua more productive. The development of whenua Māori will ultimately benefit the whole community.

“The changes will also put owners of homes on Māori land on the same footing as other home owners and retirement village residents when it comes to accessing the rates rebate scheme” she said.

This will be done by giving multiple homeowners on one block of Māori land the option to be rated individually. This will ensure low income homeowners are eligible for rates rebates.

“Some of these changes are about ensuring equitable rating practices for Māori and general land, while other changes are designed to release Māori landowners and local authorities from being stuck in a situation that neither party can easily resolve,” says Minister Mahuta.

The rating changes are part of the Government’s ongoing commitment to support whānau development through whenua. The cross-Government programme includes targeted amendments to Te Ture Whenua Māori Act 1993, new and enhanced Māori Land Court services, the launch of a whenua knowledge hub and website, regional advisory services and investment.

The Minister expects a Bill to amend the Local Government (Rating) Act 2002 will be introduced in the first half of 2020.

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