Opinion: proposed rates increase will hurt

The Dunedin City Council (DCC) is proposing an increase in residential rates of nearly 18% for the coming year, starting in July.

The Otago Regional Council (ORC) is chewing over a possible 21% increase (although its baseline is typically smaller than the DCC for those in the city).

For someone on a fixed or limited income, already facing punishing mortgage increases, or just wrestling with the steep increase in daily cost of living, these increases are going to hurt.

The average rate for the DCC for the current year is reportedly $2650.

Average DCC ratepayers are going to have to find another $500 next year — plus another $50 on average for the ORC.

That’s a replacement washing machine, tyres for the car, school uniform, shoes for the year — it is the kind of new cost that leaves a hole when it happens.

And yes, it can be paid in instalments, so for some people that’s going to be the last $10 of each week gone.

If this is you, you should know about the rates rebate scheme.

Funded by the government, with a maximum of $750 rebate, it can help.

Rates rebates can be applied for either through the government portal or the council website.

You have to be the ratepayer for your property, living there at July 1, and the amount varies depending on your income and the rates you owe.

You will need proof of your income either from Work and Income or your employer, or if you’re self employed through your annual accounts.

Council service centres can help you fill out the forms (they have to be downloaded).

Although the amount of rebate hasn’t changed much in the last few years, $750 is still $750 less than you would pay otherwise.

If you’re bracing for the new rating year, know that you can get help.

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