Paying early avoids rise

Central Otago ratepayers who get in early can avoid the coming rise in GST.

The increase in GST, from 12.5% to 15%, announced in the Budget last month, takes effect from October 1.

Central Otago corporate services manager Susan Finlay told the council meeting this week that 12.5% GST would be added to the first quarterly instalment of rates and that figure would rise to 15% for the second and subsequent instalments. Anyone paying their full rates in advance would only have to pay 12.5 % GST.

"So there you go, a bonus if you pay in advance, of less GST," deputy mayor Tony Lepper said.

Mrs Finlay said all fees and charges would be reviewed before October 1, to decide what should be changed after the GST increase took effect.

"The 15% becomes very much an arbitrary rounding. Where it doesn't make sense, we won't charge the increased fee," Mrs Finlay said.

The council will hold a special meeting later this month to confirm its rates take for the year.

 

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