Rates arrears are increasing across major centers in the country, as councils report more ratepayers struggling to pay their bills. Data obtained from three councils shows a rise in unpaid rates since June 2023.
Rising Arrears in Key Cities
Auckland has seen a significant increase in arrears, climbing from $75 million in 2023 to $91 million in 2024, and reaching $106 million by the start of the 2025/2026 financial year in July. This represents a 41% increase over the period. As of the start of the 2025/2026 financial year, approximately 6.6% of Auckland’s 642,490 ratepayers – around 42,900 people – had incurred a penalty for late payment, compared to 5.4% at the finish of the 2023 and 2024 financial years.
Christchurch experienced a rise in arrears from $25.8 million to nearly $31 million over the same period. Wellington’s arrears jumped from $20.2 million in 2024 to $31.9 million, before decreasing slightly to $29.7 million in 2025.
Christchurch currently has the highest percentage of ratepayers in arrears, with about 10.7% of its 185,000 ratepayers owing money as of June 2025. Wellington follows closely behind, with approximately 10% of its 88,900 ratepayers in arrears.
Understanding the Numbers
Christchurch City Council general manager of risk, finance and performance, Bede Carran, cautioned that headline arrears figures can be misleading. Variations in installment due dates and direct debit timing can result in ratepayers appearing technically in arrears for short periods. According to Carran, a measure of arrears over 90 days provides a more accurate reflection of true arrears, showing approximately 7149 Christchurch rating units owed $15.2m as of June 30.
Wellington was the only city to see a decrease in arrears between the 2023/24 and 2024/25 financial years, with a drop of about $2.2 million. However, it experienced the largest overall increase over the full period, with total arrears rising by nearly $9.5 million – or 47% – since June 2023.
Auckland Council general manager of financial services Rhonwen Heath noted that arrears fluctuate annually as ratepayers manage the rising cost of living, and many are resolved throughout the year. At the start of the 2025/2026 financial year, 6.6% of Auckland rating units had unpaid rates, a figure that decreased to below 1% by December 31, 2025. This compares to 5.4% at the start of the previous two financial years and 8.2% four years prior.
Frequently Asked Questions
What happens if I don’t pay my rates?
Ratepayers who fall behind on payments can face penalties. Auckland Council, for example, charges a 10% penalty on any installment not paid in full by the due date, with additional penalties applied later in the year.
What assistance is available for ratepayers struggling to pay?
All three councils offer rates postponement schemes for property owners with sufficient equity, as well as flexible payment arrangements. A government-funded rates rebate scheme provides partial discounts for low-income homeowners, with a maximum rebate of $805.
Who is now eligible for the government-funded rates rebate scheme?
From July 1 last year, SuperGold cardholders and their households earning up to $45,000 became eligible for the full rebate.
As rates arrears continue to climb, what further measures might councils consider to support ratepayers and ensure financial stability?
