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About the Revenue and Financing Policy
Our Revenue and Financing Policy sets out the:
funding tools available to us (for example, rates and fees for services like building consents)
factors we consider when deciding which tools to use
decisions we have made on how to fund each of our activities.
About the Long-Term Differential Strategy
The Long-Term Differential Strategy (LTDS) is a part of the Revenue and Financing Policy.
Under the rating policy, businesses pay a greater share of rates than non-business properties. Businesses make more use of council services like transport and stormwater. They also place more demand on these services.
Businesses are also better able to afford rates as they can claim back GST and rates can be claimed as expenses to offset income tax.
We previously decided that the level of business rates is too high and should be reduced gradually over time. The LTDS currently lowers the total amount of general rates (UAGC and value-based general rate) for businesses in equal steps, from 31 per cent of the total requirement in 2022/2023 to 25.8 per cent by 2037/2038.
What we are proposing
We propose pausing the Long-Term Differential Strategy (LTDS) for 2023/2024, and would like you to have your say.
Pausing the LTDS for 2023/2024 would mean:
the general rates increase would be applied evenly across all ratepayers in 2023/2024, reducing the amount of rates increase that non-business ratepayers pay (by around $15) and increasing the amount of rates that business would otherwise pay in 2023/2024 (by around $198)
the LTDS would resume in 2024/2025
it will take an additional year to reach the target share of 25.8 per cent from business ratepayers. This would not be accomplished until 2038/2039.
This would require an amendment to the Revenue and Financing Policy.
What happens if we don't make the proposed changes
If we do not amend the Revenue and Financing Policy to pause the LTDS in 2023/2024, then we will be unable to implement this as proposed in the Annual Budget 2023/2024 consultation document.
Why we're proposing these changes
Pausing the LTDS will help to reduce the immediate impact of proposed rates increases on non-business (residential and farm/lifestyle) ratepayers for 2023/2024.
How you can have your say
We encourage you to complete our online form, or you can::
Post the form to: Revenue and Financing Policy, Auckland Council, Private Bag 92300, Victoria Street West, Auckland 1142.
When you can have your say
You can have your say from midday on 28 February until 11 pm on 28 March 2023.
What happens next
We will record all feedback in a report for elected members to consider as they deliberate the proposed annual budget.
About the Revenue and Financing Policy
Our Revenue and Financing Policy sets out the:
funding tools available to us (for example, rates and fees for services like building consents)
factors we consider when deciding which tools to use
decisions we have made on how to fund each of our activities.
About the Long-Term Differential Strategy
The Long-Term Differential Strategy (LTDS) is a part of the Revenue and Financing Policy.
Under the rating policy, businesses pay a greater share of rates than non-business properties. Businesses make more use of council services like transport and stormwater. They also place more demand on these services.
Businesses are also better able to afford rates as they can claim back GST and rates can be claimed as expenses to offset income tax.
We previously decided that the level of business rates is too high and should be reduced gradually over time. The LTDS currently lowers the total amount of general rates (UAGC and value-based general rate) for businesses in equal steps, from 31 per cent of the total requirement in 2022/2023 to 25.8 per cent by 2037/2038.
What we are proposing
We propose pausing the Long-Term Differential Strategy (LTDS) for 2023/2024, and would like you to have your say.
Pausing the LTDS for 2023/2024 would mean:
the general rates increase would be applied evenly across all ratepayers in 2023/2024, reducing the amount of rates increase that non-business ratepayers pay (by around $15) and increasing the amount of rates that business would otherwise pay in 2023/2024 (by around $198)
the LTDS would resume in 2024/2025
it will take an additional year to reach the target share of 25.8 per cent from business ratepayers. This would not be accomplished until 2038/2039.
This would require an amendment to the Revenue and Financing Policy.
What happens if we don't make the proposed changes
If we do not amend the Revenue and Financing Policy to pause the LTDS in 2023/2024, then we will be unable to implement this as proposed in the Annual Budget 2023/2024 consultation document.
Why we're proposing these changes
Pausing the LTDS will help to reduce the immediate impact of proposed rates increases on non-business (residential and farm/lifestyle) ratepayers for 2023/2024.
How you can have your say
We encourage you to complete our online form, or you can::
