27 Oct 2011

Auckland rates to rise as much as 3.5% next year

8:45 pm on 27 October 2011

Property rates in Auckland could rise by an average of 3.5% next year.

Mayor Len Brown proposed that increase as an upper limit when he unveiled the Auckland Council's draft 10-year plan on Thursday.

Mr Brown hopes the final figure for next year will be below 3.5% but is forecasting rates rises of 4.5% to 5% in subsequent years as major transport projects are tackled.

The actual increase will not be known until a new rates system is finalised early next year.

For next year, the council is capping any increase in an individual residential rate at $400.

The council is still designing a new rating system that will merge the eight systems it inherited, as a result of which some people will pay higher increases than others.

Under the plan all properties would be liable for a flat charge of $350 on top of other rates charges.

Mr Brown says that approach is likely to lead to lower rate rises for rural dwellers and those in the west.

The draft plan now faces nine month of public debate and consultation.