Kiwi households paying almost double in rates compared to OECD average

An IRD report has today confirmed what many ratepayers have long suspected; New Zealand households are paying almost double the amount of rates, or similar land tax equivalents, than the average of its OECD neighbours.

Commenting, Local Government Campaigns Manager for the New Zealand Taxpayers’ Union, Sam Warren, said:

“This report will make for grim reading for many Kiwis struggling with paying their rates.

“The average percentage of rates collected by Councils, comparative to GDP, sits at 1% in the OECD.  Disturbingly, the revenue collected through rates in New Zealand is significantly higher than this average of 1.9% of GDP, nearly twice the amount.

“The report confirms we don’t have a revenue problem, but a spending problem.  We are paying more property taxes than our OECD counterparts, with compounding rates increases in the pipeline, and no end in sight.

“Councils have long failed to keep costs low while staying on top of declining local infrastructure.  What Kiwis are left with is rolling rates increases of more than 14% percent across the board just this year alone, highlighted in the 2024 Taxpayers’ Union Rates Dashboard.

“Prime Minister Christopher Luxon was recently met with jeers and scepticism from a room full of mayors and councillors when told they must go to greater lengths to rein in spending.  Compared to our overseas equivalents, alarm bells should be ringing that more must be done to get us closer to the OECD average, or ideally, below.”