Rating of Whenua Māori Amendment Bill passes first reading

“The proposed changes detailed in the Bill are a significant step forward in reducing rating barriers for Māori landowners, stimulating regional development and providing consistency around the rating of Māori land”, says Minister Nanaia Mahuta.

The Local Government (Rating of Whenua Māori) Amendment Bill has had its First Reading in Parliament.

"The proposed changes detailed in the Bill are a significant step forward in reducing rating barriers for Māori landowners, stimulating regional development and providing consistency around the rating of Māori land", says Minister Nanaia Mahuta.

Minister Mahuta, responsible for Māori Development and Local Government, made the announcement about the proposed changes to the rating of whenua Māori in Northland last month.

"The current system fails to adequately address the unique legal arrangements around Māori land and its constraints. Multiple ownership of Māori land and the fragmentation of land interests over the generations has meant significant tracts of Māori land remain unused and many of the blocks carry historic rates arrears.

As announced on 2 February 2020, the key changes detailed in the Local Government (Rating of Whenua Māori) Amendment Bill are:

Local authority chief executives will have the power to write-off unrecoverable rate arrears on any land; including rates debts inherited from deceased owners of Māori land.

Most unused Māori land will be non-rateable; this will remove rates arears debt on unused Māori land. Ngā Whenua Rāhui kawenata – Māori land that has been set aside for conservation purposes will be non-rateable.

A statutory rates remission process will be available for Māori land under development, offering rates relief and encouraging development.

Māori homeowners on Māori land will be able to choose to be rated individually which may make low income Māori home-owners eligible for rates rebates; and will simplify the administration of rates where there are multiple homes on one block of Māori land; and

Local authorities will be able to treat multiple Māori land blocks from the same parent block as one for rating purposes; which will reduce the overall rating liability and make the development of this land more economic.

The rating changes are an extension of the Government's Whenua Māori Programme, which includes amendments to Te Ture Whenua Maori Act 1993, and are part of the Government's wider commitment to supporting whānau development through whenua.

"Public submissions on the Bill will be called for shortly. If the Bill progresses through Parliament in 2020, the changes in the Bill will come into force no later than 1 July 2021.

"In making these changes, we are tackling some long-standing roadblocks which will help accelerate the use and development of Māori land. The changes will also provide greater clarity around the rating of Māori land for whānau and local authorities", says Minister Mahuta.

(With Inputs from New Zealand Government Press release)