NICK LEGGETT OFFERS RATES DEFERRAL OPTION FOR OLDER WELLINGTONIANS

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Wellington homeowners over the age of 65 bear the brunt of household rate increases and deserve greater access to financial relief, Nick Leggett said.

Leggett says a council he leads will allow older Wellington ratepayers to defer all or some of their rates indefinitely, replacing a far more limited scheme that only provides relief in the case of extreme financial hardship.

“Retirees on fixed incomes often live in homes that have appreciated hugely over many decades of rising house prices, leaving them asset-rich but cash poor”, Leggett said.

Older homeowners typically face the triple-whammy of rate increases, ever-higher valuations and the escalating cost of living.

“As rate increases outstrip inflation, house valuations continue to rise, and the cost of insurance skyrockets as a result of the Christchurch earthquakes, the financial squeeze on older Wellingtonians is real and getting worse,” Leggett said.

Leggett says the deferral option will free up much needed funds for older ratepayers to spend on home maintenance, growing health needs, or just to cover the rising cost of living. Any ratepayer over 65 who can demonstrate that rates comprise more than 15 percent of their gross income will be eligible for the deferral.

“As I go about the city, I hear everyday from older Wellingtonians about how the rates bill places stress on their household budget.

“Because councils can borrow cheaply, rates deferral operates much like a low-cost loan against the household estate. It is a cost-neutral option that doesn’t ask other ratepayers to pick up the tab,” Leggett said.

The Local Government (Rating) Act 2002 and the Local Government Act 2002 offer flexibility to councils to postpone rates for residents, regardless of whether they can prove financial hardship. Variations of the scheme proposed by Leggett are already in place in Nelson, Auckland, and Christchurch.

ENDS

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