Whakatāne District Council has signalled its in-principle support for the establishment of a nationwide Ratepayer Assistance Scheme (RAS).

The scheme is a local government-led, low-cost loan scheme designed to ease cost-of-living pressures by enabling certain council-related costs to be spread over longer periods of time, rather than paid upfront.

Eligible uses would include development contributions/levies, certain property improvement loans, and rates postponement, which allows qualifying ratepayers to defer rates payments until their property is sold.

The RAS has been under development for a number of years and is now at the stage where councils across the mōtū are being asked to signal whether they would support the initiative should it be formally established.

The working group has included members from Local Government, the Local Government Funding Agency (LGFA), Simpson Grierson, Cameron Partners and a number of local authorities. Whakatāne District Council’s chief financial officer, Paul Davidson, has been involved with the initiative from its start.

Under the proposed structure, RAS would function as a separate entity: it would pay councils upfront for the relevant charges, while ratepayers repay RAS gradually through a property-based levy or upon property sale, depending on the product used.

By absorbing administrative work and financial risk, the scheme would allow councils to maintain core services while giving communities more flexibility in managing payments.

The scheme is supported by the Local Government Funding Agency and will allow the RAS to secure interest rates lower than standard bank lending.

It is modelled on the successful and well-developed scheme in British Columbia, a region with a similar population size to New Zealand.

Mayor Nándor Tánczos said the proposal came at a time when many households were continuing to face financial pressure.

“Supporting the Ratepayer Assistance Scheme is one way we can help with rising costs and tight household budgets for people in our communities.

“The Council wants to ensure that housing development costs, home improvements with public benefits like solar panels and better insulation, and rates obligations can be paid more easily.

“If the scheme gets enough support to get up and running it will give our residents more flexibility, more time, and more confidence to invest in their homes and futures. I see great benefits for our ratepayers, council and the whole district.”

Mr Davidson, who presented the proposal, said it was a promising model that could ease immediate financial pressure and provide choice for ratepayers.

“By establishing a centrally supported, low-cost loan mechanism, the scheme would allow important costs, like development contributions/levies, rates, and certain property improvements, to be spread over a longer period or upon the disposal of a property. This approach would enable the council to maintain cashflow and core services, while giving households a practical and affordable pathway to manage expenses.

“Importantly this is a scheme that provides choice to ratepayers to consider their personal circumstances and does not replace options which continue to be developed to ensure the best value for money outcomes can be delivered.”

At a future date, councils will be asked to consider an equity investment in RAS. The total equity of the scheme is estimated to be $30 to $35 million, the majority of which will come from across the local government sector.