Rates Remission NZ: How Council Hardship Discounts Work

What Is a Rates Remission?

A rates remission is a discount or waiver that your local council grants from its own revenue. Unlike the national rates rebate (funded by central government through the DIA), remissions are entirely discretionary — each council sets its own policies, criteria and limits under Section 85 of the Local Government (Rating) Act 2002 and Section 109 of the Local Government Act 2002.

A remission reduces the amount you owe under the relevant policy. Unlike postponement, it is not a deferred debt with interest or a land charge against your property. But you have to qualify under your specific council's published policy.

How Remissions Differ from Rebates

The two programmes work in sequence. You apply for the national rebate first. If granted, it reduces your rates bill. Any remission is then calculated against the remaining balance. This prevents double-recovery while maximising the total assistance.

What Councils Offer

Every council's remission policies are different, but common categories include:

Financial hardship — For ratepayers experiencing extreme personal or financial circumstances that make paying rates genuinely impossible. Wellington, Ruapehu and Grey District councils all have hardship provisions. Assessment is case-by-case, and you'll typically need to demonstrate that you've explored other options (including the national rebate).

Late payment penalty remission — Some councils can remit penalties. Christchurch has a remission for one-off defaults; Grey District can cancel penalties where late payment stems from family disruption or hospitalisation. Apply under the relevant council policy.

Natural disaster relief — Wellington grants temporary rates remissions for homes made uninhabitable by severe weather or flooding. This is a time-limited policy tied to specific events — applications must typically be lodged within 12 months.

Earthquake strengthening — Wellington offers remissions for properties undergoing seismic strengthening while the building is unoccupiable. This applies to both commercial and residential buildings in the council's earthquake resilience programme.

Community organisations — Non-profit sports and community facilities may qualify for reduced rates under specific council policies.

How to Apply

1. Check your council's published remission policies — these are public documents, usually available on the council's website under their Long-Term Plan or rates policy section
2. Apply for the national rates rebate first — councils expect this to be done before considering local remission
3. Submit a formal written application to your council's rating department with supporting documentation
4. Include evidence of your circumstances — financial statements, medical documentation, insurance correspondence, or whatever is relevant to the specific remission category

Processing times and re-application requirements vary. Some remissions are annual; others are one-off. Some require application before 1 July; disaster relief typically has a 12-month window.

The Remission as a Safety Net

The national rebate has a fixed formula, baseline income thresholds with abatement above them, and a 30 June deadline with no backdating. Remissions may fill some gaps. If the formula leaves you with no rebate, if the rebate does not cover your situation, or if you missed the deadline or a specific event (flooding, earthquake damage, medical emergency) has created a rates crisis, your council's remission policies are the next place to look.

The Rates Rebates in New Zealand guide includes a hardship remission screening matrix to help you identify which council policies might apply to your situation and how to structure your application.

See more New Zealand guides →