IN recent weeks in I have been discussing the impact of rates on the local economy and discovered that a majority of renters believe that rate increases don’t affect them.
This is incorrect.
Like any business model, landlords factor in all costs such as mortgage repayments, repairs and of course rates into the rental price.
With the average rates bill exceeding $2500 for a three-bedroom home, most renters are astonished to discover that they are contributing an average of $50 per week to council rates.
With each increase, comes an increase in rent. For those on minimum wage, this equates to nearly 10 per cent of their take home pay.
Shop keepers factor this into the products they supply. Rates affect every single person more times each day than they realise.
If our rates were reduced by as little as $10 per week, per household and business, our local economy could see as much as an extra $10 million dollars per year being spent in the private sector, creating jobs and easing some pressures on the household budget.
In the words of Winston Churchill, “for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle”. Our council could learn from this.