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Auckland should raise its Uniform General Charge

Media statement Thursday October 23, 2014

Auckland should raise its Uniform General Charge to level out rates increases

The big increases in property valuations reported today would have far less impact on rates increases and decreases if Auckland Council raised the Uniform Annual General Charge (UAGC), the Employers and Manufacturers Association says.

The UAGC currently set at $373 is a base amount charged on all properties regardless of a property's location or valuation. The Council was advised the average valuation increase on all properties was 29 per cent.

The Council will receive no windfall from the change in valuations, with individual ratepayers paying more, or less, depending on how their property compares with the 29 per cent overall valuation increase. However business rates are treated unfairly and an increase in the UAGC and a faster reduction in the business differential is required.

"Auckland Council should expedite an urgent increase in the UAGC," said Kim Campbell, EMA's chief executive.

"This would greatly assist 'Council distribute rates fairly based on the capital value of each property,' which Councilor Penny Webster says is the Council's objective.

"The UAGC should be doubled to its legal maximum of about $750 over three years, to 30 per cent of the total rates bill, rather than tempt the Council to continue to rate business unfairly.

"Rates would not go up as a result of doing this, but it would have the important effect of flattening out the rating structure.

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"Auckland's UAGC is amongst the lowest in the country.

"Increasing the UAGC is said to be unpopular as it impacts more on the rates paid on properties of lower value.

"However anyone badly affected can get recourse through the Rates Rebate scheme which is underutilized in Auckland. These rebates can be as much as $605 a year to qualifying ratepayers.

"Auckland Council needs to bite the bullet on this issue and to reduce the business differential much faster than at present."

© Scoop Media

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