Rates arrears growing - which city leads the pack?

Overall combined rates arrears across the country's biggest centres have grown by tens of millions over the past three years, climbing as councils grapple with ratepayers struggling to keep up with bills.

Data obtained by 1News from the three councils shows unpaid rates at the end of each financial year have risen across the three cities since June 2023.

Auckland's arrears grew from $75 million in 2023 to $91 million in 2024, and then grew further to $106 million by the start of the 2025/2026 financial year in July.

That's a 41% increase over the period.

About 42,900 of the city's 642,490 ratepayers, or 6.6%, had incurred an arrears penalty, which compared to 5.4% at the end of the 2023 and 2024 financial years.

Christchurch saw arrears climb from $25.8 million to nearly $31 million over the same period.

Wellington's jumped from $20.2 million to $31.9 million in 2024, before easing slightly to $29.7 million in 2025.

On a percentage basis, Christchurch had the highest rate of arrears, with about 10.7% of its 185,000 ratepayers owing money at the end of June 2025.

Wellington was close behind at about 10% of its 88,900 ratepayers.

However, the raw figures don't necessarily tell the full story.

Christchurch City Council general manager of risk, finance and performance, Bede Carran, noted the headline arrears figures could be misleading.

Different instalment due dates across the city's three geographic zones and the timing of direct debits meant some ratepayers appeared technically in arrears for short periods.

“There are material variations caused by the different due dates for the three geographic areas our city is divided into,” Carran said.

“And the impact of people on monthly direct debits who, due to timing differences, may, for a short period of time, technically be in arrears in certain periods but not others.”

On a 90-plus-day measure, which Carran said better reflected true arrears, about 7149 Christchurch rating units owed $15.2m as at June 30 - roughly half the headline figure.

It's also notable that water charges are billed separately from property rates in Auckland.

Wellington was the only city where arrears fell between the 2023/24 and 2024/25 financial years, dropping by about $2.2m.

But the capital still saw the sharpest growth over the full period, with total arrears owed at the end of the last financial year jumping by nearly $9.5m - or 47% - since June 2023.

Auckland Council general manager of financial services Rhonwen Heath said arrears varied each year as ratepayers managed the rising cost of living, and many were resolved as the year progressed.

"We continue to support our ratepayers with a range of assistance available, including a government-funded rates rebate scheme, a rates postponement scheme, and flexible payment options," Heath said.

“Rates arrears trends between 2023-2025 show continued variability – 6.6% of rating units had unpaid rates at the start of 2025/2026.

"However, this percentage fell to below 1% by December 31, 2025.

“For the previous two years, 5.4% of rating units had rates outstanding at the start of the financial year and four years ago in 2022/2023 this figure was 8.2%.”

Ratepayers who do fall behind can face steep consequences. Auckland Council, for example, charges a 10% penalty on any instalment not paid in full by the due date.

A further 10% is charged on amounts still owing at the end of the rating year, with a third 10% penalty applied six months later.

Ratepayers struggling to keep up with bills do have options.

All three councils offer rates postponement schemes for those with sufficient equity in their property, as well as flexible payment arrangements.

A government-funded rates rebate scheme also provides partial discounts for low-income homeowners, with a maximum rebate of $805.

From July 1 last year, a new income threshold meant SuperGold cardholders and their households earning up to $45,000 became eligible for the full rebate.