Incoming cost of living support for low-income homeowners doesn't go far enough to help those really doing it tough
Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, claiming to put money back into the pockets of low-income homeowners but doing little to help those doing it tough in rental properties.
The Rates Rebate scheme, established in 1973, is a partial refund for people who pay rates to their council. It exists to provide financial relief for low-income New Zealanders who own their own home.
"The coalition Government is committed to bringing down the cost of living for New Zealanders," says Brown. "That includes targeted support for those Kieis who are things tough, such as through the Rates Rebate Scheme."
From 1 July 2024, the maximum rebate will increase from $750 to $790. The income abatement threshold will rise from $30,100 to $31,510.
The changes reflect the 4.7 per cent movement of the Consumer Price Index for the 2023 calendar year, according to Brown.
"Ultimeately our Government's plan is to rebuild the economy, lifting incomes and lowering the cost of living for all," says Brown.
KidsCan's CEO and founder Julie Chapman welcomes any move to reduce living costs for people on low incomes but doesn't think the rebates will affect those really doing it tough in this cost-of-living crisis, the low-income house renters.
"Most families of the children that KidsCan supports don't own thier own homes," Chapman says. "Figures out yesterday show rental prices continue to skyrocket."
"It would be great to see the Government go even further and provide rent relief to families struggling to afford the very basics - both a roof over their heads and enough food each week."
