Selwyn district councillors unanimously voted to approve an economic recovery package to further help struggling ratepayers at a meeting on Wednesday.
Rates payments for the 2019/20 financial year can be extended until June 31, 2021, for ratepayers who enter into a direct debit payment plan.
"It is about looking after the interest of all ratepayers," said corporate services group manager Greg Bell.
In November, the district council will consider extending the policy further.
Businesses that have received the wage subsidy and ratepayers who have lost their jobs or lost 20 per cent or more of their income from all sources could be eligible for a two-year deferral on payments.
The district council also agreed on its intent to reduce the penalty for late payment of rates from 10 per cent to three per cent.
The decision will be made as part of the rates resolution for the year that happens in June.
The district council will also prepare a rates postponement policy for consultation as part of the Long Term Plan 2021-31 process.
This would mean ratepayers can postpone their rates and any accrued costs would be settled when their property is sold.