For many retired homeowners in New Zealand, council rates are one of the largest annual bills — and one that keeps rising. What many retirees don’t realise is that the Rates Rebate Scheme can cut hundreds of dollars off that bill each year, yet tens of thousands of eligible households never claim it.
With fixed incomes under pressure and rates increasing across most councils, the rebate can make a meaningful difference to day-to-day affordability.
Here’s how the scheme works, how much NZ retirees can save, and who qualifies.
What Is the Rates Rebate Scheme?
The Rates Rebate Scheme is a government-funded programme that helps low-income homeowners, including many retirees, pay their council rates.
The scheme:
- Is administered by local councils
- Is means-tested
- Applies to your main home only
- Must be applied for each year
According to Department of Internal Affairs, the scheme is designed to protect people on fixed or modest incomes from being priced out of their homes by rising rates.
How Much Can NZ Retirees Save?
For the current rating year, eligible households can receive a rebate of up to around $790 off their annual council rates bill.
The exact amount depends on:
- Your total household income
- The amount of rates you pay
- How far your income is below the threshold
For many retirees, the rebate ranges between $300 and $700, paid directly as a reduction on the rates account.
Who Can Qualify for the Rebate?
You may be eligible if you:
- Own and live in your home
- Pay rates to a local council
- Have a low or moderate household income
- Use the property as your main residence
Importantly:
- You do not need to be on NZ Super only
- Small KiwiSaver withdrawals count as income
- Savings and assets (other than the home) are not directly assessed
Many single retirees and couples on NZ Super fall within the income thresholds, especially if they have no mortgage.
Why So Many Retirees Miss Out
Despite being well-established, the Rates Rebate Scheme is widely underclaimed.
Common reasons include:
- Assuming NZ Super income is too high
- Not realising KiwiSaver withdrawals count as income
- Thinking the rebate is automatic
- Believing it only applies to extreme hardship
- Not wanting to deal with council paperwork
In reality, most councils make the process relatively straightforward, especially for retirees.
How the Rebate Is Calculated
The rebate is based on a formula that considers:
- Annual household income
- Total annual rates
- A set income threshold
If your income is below the threshold, part of your rates bill is reduced, up to the maximum rebate.
Even households slightly above NZ Super alone can still qualify.
How to Apply (and When)
Key points retirees should know:
- Applications usually open after rates bills are issued
- You must apply each rating year
- Proof of income is required (NZ Super statements, etc.)
- The rebate is credited directly to your rates account
If approved, you’ll see the reduction applied to your bill rather than receiving cash.
Comparison: Claiming vs Not Claiming
| Situation | Annual Impact |
|---|---|
| No rebate claimed | Full rates bill paid |
| Partial rebate | $300–$500 saved |
| Full rebate | Up to ~$790 saved |
Over a decade, even partial rebates can add up to thousands of dollars saved.
What NZ Retirees Should Do Now
- Check your latest rates bill
- Add up your total household income
- Don’t assume NZ Super disqualifies you
- Contact your local council for an application
- Reapply every year, even if income hasn’t changed
Many councils also offer help completing the form.
Questions and Answers
Q1: Is the Rates Rebate only for pensioners?
No, but retirees make up a large share of recipients.
Q2: Do I need to be on NZ Super?
No.
Q3: Does owning my home outright help?
Yes, as income tends to be lower.
Q4: Is KiwiSaver income counted?
Yes.
Q5: Are savings assessed?
No, assets other than income are not directly tested.
Q6: Is the rebate automatic?
No, you must apply each year.
Q7: Can couples apply jointly?
Yes, household income is assessed together.
Q8: Does it affect other benefits?
No.
Q9: Can I still apply if I missed last year?
Yes, but rebates are not usually backdated.
Q10: Where do I apply?
Through your local council.
Bottom Line
The Rates Rebate Scheme is one of the most valuable yet overlooked supports available to NZ retirees. With savings of up to around $790 a year, it can significantly reduce one of the biggest fixed costs of retirement. If you own your home and live mainly on NZ Super or a modest income, checking your eligibility could deliver immediate and ongoing savings.
