Auckland Mayor Wayne Brown has called for the Government to pay rates on its properties in the city, claiming the change would bring in more than $36m a year for New Zealand’s biggest city.
Government-owned properties in Tāmaki Makaurau included schools and hospitals. At the moment, the properties were exempt from rates. Auckland Council estimated the value of those rates at more than $36 million in 2023/24 values.
Brown also urged the Government to return GST paid on Aucklanders’ rates to the council.
“Why should central Government get a free ride? They use our infrastructure but don’t pay the bill,” he said this morning, in a statement.
“I know there is appetite for it, politically and publicly.”
Other properties including airports, churches and port land were also exempt, he added, urging law reform around non-rateable land.
“Aucklanders are struggling to make ends meet,” Brown said. “Everyday Aucklanders are doing it tough.”
The total value of GST on rates in 23/24 was more than $415 million, the council estimated. Brown wanted that back from Government.
“If that money was returned to Aucklanders, it would enable rates to be 15% lower (a reduction in rates of 7.5% for the average household for the next financial year instead of the 7.5% increase proposed in the Long-term Plan central scenario, out now for public consultation),” the council said.
“Staff estimates show for the 24/25 financial year, that would be an average savings per household of $506.40.”
The mayor also wanted the Government to provide the council with a share of the portion of GST collected on new residential builds.
Finance Minister Nicola Willis has expressed an openness to “introducing financial incentives” for the council to promote housing development in Auckland, the NZ Herald reported.
That included considering Brown’s request for new build GST to be shared.
“We are developing policy options for doing this and we welcome discussion with the Mayor of Auckland about what would work for the council,” she said.
Brown said it was a case of fairness. “Aucklanders are being shortchanged. We put more into Treasury’s coffers than we get in return,” he said.
“We want a fair share of the revenue Auckland generates, and in this instance the Government is smart enough to recognise this.
“I’m looking forward to the discussions here.”