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Central Govt urged to pay rates to Auckland Council

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Staff Reporter

01 April 2024, 6:23 PM

Central Govt urged to pay rates to Auckland CouncilMayor advocates for fair payment system

In response to Auckland Council's and the Houkura Independent Māori Statutory Board's proposals, Mayor Wayne Brown has formally called upon the government to pay rates on its Auckland properties.


The Mayor emphasises the need for equity, stating that everyone, including the government, should contribute to the upkeep of council services.





"We need a fair system where everyone pays their share. It's unjust for the government to enjoy council services without contributing financially," Mayor Brown stated, highlighting the substantial amount of money exempted from rates, estimated at $36,331,007.


Brown sees this as part of his broader vision outlined in his manifesto for an Auckland deal, resonating with both political and public sentiments.


He emphasises the need for law reform, particularly in revising outdated legislation that allows certain entities to evade rate payments.


The Mayor's proposal includes reforms not only in rate payments but also in reallocating revenue generated from GST on rates and new residential builds.





According to council estimates, the return of such revenue could lead to a 15% reduction in rates for households.


"A fair share of revenue is crucial for Auckland's development," Mayor Brown emphasised. He stressed that Auckland contributes significantly to the national economy but does not receive a proportional return, indicating the need for fairer distribution mechanisms.


The call for reforms aligns with recommendations from the 2023 Future for Local Government review, which highlighted the unsustainable nature of the current funding system.


Mayor Brown believes that these changes would not only benefit Auckland but also assist the government in fulfilling its promises of tax relief and fairer revenue distribution.


As discussions unfold, the Mayor remains optimistic about achieving a system that benefits all parties involved, bringing Auckland in line with international standards and ensuring sustainable growth for the future.