If you own your own property you may be eligible for a partial discount on your rates bill – if you are on a ‘low’ income. This becomes more relevant when you have retired, and your income is based on your New Zealand Superannuation plus any investment earnings. There is special treatment for people who have a SuperGold card (there is a lower cutoff of household income than if there is no SuperGold card.)
In Budget 2025 – the Government announced that the threshold of income for rates would be increasing from 1st July 2025 and that the total amount that you can get back will also be increasing, so we thought it would be a good idea to check out how many of our clients would be entitled to a rates rebate.
We were surprised that a client with a property in Wellington and an income of around $75,000 was entitled to a full rebate of $805 (the maximum). This is because the amount of rates charged in Wellington are high, so the income that made our client eligible was higher than expected.
The amount of income required varies by council region, so it is important that you check your entitlement by going to the calculator at https://www.govt.nz/browse/housing-and-property/getting-help-with-housing/getting-a-rates-rebate/rates-rebate-calculator/
There are some important things that you need to know:
1. The financial year for the rates rebate ends on 30/06. This is all rates, including your District Council and Regional Councils and your water rates.
2. You have to be the legal ratepayer for your property. If your property is owned by a Trust, you have to be a named trustee and listed in the council’s Rating Information Database to be able to get the rebate.
3. The property has to be your place of residence as at the 1st July of that year
4. You property cannot be used principally for commercial, industrial, business or farming purposes.
5. You have to apply in the relevant year (and you have to reapply every year.)
6. Most people who are entitled can get a rates rebate if you live in a retirement village. We have it on good authority (from clients) that you may have to insist that you are entitled to the management of your Village.
Information that you will need to complete the rates rebate calculator:
1. Your rates amount for that year
2. Your total household income. This will include your pre-tax New Zealand Superannuation income – which you can find out here: https://www.workandincome.govt.nz/eligibility/seniors/superannuation/how-much-you-can-get.html
3. Please note that your total income will include all interest and dividends from your investments including your PIE income and any of the assessed income from the FIF regime. It will also include any overseas pensions that you receive and any income from work, or properties or AirBnB’ing your property.
4. Your proof of income is required – information from your tax return could be useful, but you should check with your local council to see that their proof of income requirements are.
5. If you make drawings from your investments, this is not your income, the actual income that your investments generate are the numbers that you need to include.
6. The number of dependants living with you.
The table below gives you an indication of whether it is worth your while applying for a rates rebate for the year ending 30/06/2026.
