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Energy Efficiency and Conservation Authority and rates postponement

EECA has recently introduced an interest rate subsidy programme to help people borrow the capital cost of retrofitting their homes for energy efficiency purposes. It knows that one of its most important target groups is older people on limited incomes who may have difficulty repaying the capital even although the interest is subsidised. EECA has accordingly negotiated with the rates postponement consortium an arrangement under which the capital cost can be met through a postponed rate. This is dependent on individual councils deciding they want to provide this facility. EECA's chief executive has written to all councils encouraging them to do so.
The text of that letter, and of an appendix explaining how the arrangement works in practice can be seen here…

Auditor-General's Report

During 2006 the Auditor-General undertook a review of rates postponement, both optional rates postponement as offered by the consortium, and the previous option of postponement on grounds of hardship. In his foreword to his report he stated his reason for the review as "I felt it would be timely to undertake a performance audit of both these types of residential rates postponement policies, so that lessons regarding optional rates postponement can be learned early and best practice can be shared among councils that currently offer, or are considering offering, residential rates postponement.
To read the full text of the summary of his report click here…
The full report can be seen on the Auditor-General's website at www.oag.govt.nz

Rates Rebate

On 1 July 2006 the enhanced rates rebate scheme came into effect. Ratepayers are now entitled to a rebate of up to $500 subject to an income test based on household income. The operation of the income test is complex. Basically, entitlement to the rebate abates once income reaches $20,000 per annum. Depending on the size of the rates bill, households with incomes up to $30,000 or more could qualify for a rebate. Ratepayers can qualify both for the rates rebate and for rates postponement. As a first step, the rates rebate is deducted from the total rates payable. The balance, after deducting the rebate, is then eligible for postponement. The rules for the enhanced rates rebate scheme, together with some work examples, are all set out in the Prime Minister's press statement announcing the enhanced scheme.
To read a copy of the press statement click here…