The Rates Rebate Amendment Bill (the Bill) is intended to provide financial support for low-income SuperGold Card cardholders who may otherwise face financial hardship due to high rates bills.

The Rates Rebate Act 1973 (the Act) uses income as the primary threshold for eligibility. The current income abatement threshold of $31,510 per household (which will increase to $32,210 on 1 July 2025) excludes many SuperGold Card cardholders from receiving the full benefit of the Rates Rebate Scheme. Rebates are calculated according to a formula that includes the gross income and number of dependants of a ratepayer and their spouse or partner (if applicable) and their rates amount. The level of rebate available decreases for every dollar earned above the income abatement threshold. This effectively excludes households consisting of couples whose only income is New Zealand superannuation from getting full rebates. Those households face significant rates bills that are on average rising at a higher rate than increases to New Zealand superannuation, meaning that this issue will only compound over time without intervention.

The Bill provides a separate income abatement threshold of $45,000 for SuperGold Card cardholders, effective as of 1 July 2025.

The Act contains a power to amend the specified amounts in section 3(1) by Order in Council. The Bill also provides a limited extension to that power, to enable the income abatement threshold for SuperGold Card cardholders to also be amended by Order in Council.

Departmental disclosure statement

The Department of Internal Affairs is required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill.

A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2025&no=162

Regulatory impact statement

The Department of Internal Affairs produced a regulatory impact statement on 6 May 2025 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.

A copy of this regulatory impact statement can be found at—

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause. The Bill comes into force on 1 July 2025 immediately after the Rates Rebate (Specified Amounts) Order 2025 (which amends section 3 of the Rates Rebate Act 1973 to increase the amount of the income abatement threshold from $31,510 to $32,210 and the maximum amount of a rates rebate from $790 to $805).

Clause 3 provides that the Bill amends the Rates Rebate Act 1973.

Part 1Amendments about SuperGold Card income abatement threshold

Clause 4 amends section 2 to insert definitions of SuperGold Card and cardholder.

Clause 5 amends section 3 to—

set a higher income abatement threshold of $45,000 for a ratepayer who is a SuperGold Card cardholder (the SuperGold Card threshold):
extend the existing power to amend, by Order in Council, the amounts specified in section 3(1) to cover the amount of the SuperGold Card threshold.

Clause 6 amends section 5 to add a ratepayer’s status as a SuperGold Card cardholder to the list of matters a territorial authority is not required to verify when processing an application for a rates rebate.

Part 2Amendments about savings

Clauses 7 and 8 and the Schedule amend the Rates Rebate Act 1973 to add a saving provision. The saving provision makes it clear the new SuperGold Card threshold does not apply in relation to a rating year that ended before 1 July 2025 (and that any rates rebate for that year must be determined as if the Rates Rebate Amendment Act 2025 had not been enacted).

Hon Simon Watts

Rates Rebate Amendment Bill

Government Bill

162—1

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Rates Rebate Amendment Act 2025.

2 Commencement

This Act comes into force on 1 July 2025 immediately after the Rates Rebate (Specified Amounts) Order 2025 comes into force.

3 Principal Act

This Act amends the Rates Rebate Act 1973.

Part 1 Amendments about SuperGold Card income abatement threshold

4 Section 2 amended (Interpretation)

In section 2(1), insert in their appropriate alphabetical order:

cardholder has the meaning given in regulation 282 of the Social Security Regulations 2018

SuperGold Card has the meaning given in regulation 282 of the Social Security Regulations 2018

5 Section 3 amended (Rates rebate)

(1)

In section 3(1)(a)(ii), replace “$32,210, that last-mentioned amount” with “the ratepayer’s income abatement threshold, the amount of that threshold”.

(2)

After section 3(1), insert:

(1AA)

For the purposes of subsection (1)(a)(ii), a ratepayer’s income abatement threshold is—

(a)

$45,000 for a ratepayer who, at the time the ratepayer applies for the rebate, is a SuperGold Card cardholder; or

(b)

$32,210 for any other ratepayer.

(3)

In section 3(2), after “subsection (1)”, insert “or (1AA)”.

6 Section 5 amended (Applications to territorial authority for rates rebate)

Replace section 5(6) with:

(6)

The chief executive of the territorial authority or other authorised officer is not required to verify a statement about any of the following matters made by a ratepayer in their application for a rebate:

(a)

the ratepayer’s income:

(b)

the income of any other person:

(c)

the occupancy of the property:

(d)

the ratepayer’s status as a SuperGold Card cardholder.

Part 2 Amendments about savings

7 New section 2A inserted (Transitional, savings, and related provisions)

After section 2, insert:

2A Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

8 New Schedule 1 inserted

Insert the Schedule 1 set out in the Schedule of this Act as the first schedule to appear after the last section of the principal Act.

Schedule New Schedule 1 inserted

s 8

Schedule 1 Transitional, savings, and related provisions

s 2A

Part 1 Provisions relating to Rates Rebate Amendment Act 2025

1 Saving

A ratepayer’s entitlement to a rebate for a rating year ending before 1 July 2025, and the amount (if any) of that rebate, must be determined as if the Rates Rebate Amendment Act 2025 had not been enacted.

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