Discount and GST rise provide focus on early payment of rates

June 26th
[TDC Press release

In its Corporate Services Committee meeting yesterday the Tasman District Council identified the benefits available to ratepayers in light of the impending rise in GST in October 2010.

In the midst of the discussion regarding the Council's response to the GST rise the advantages of paying the annual rates in the first instalment was discussed. The decision to raise GST to 15% in October 2010 has provided a window for ratepayers throughout the country this year.

With the rating year beginning in July, and the first instalment due before the rise, those that pay their rates in one instalment will have the double advantage of gaining the 2% early payment discount the Council is offering this year and the difference between the current and future GST rate, effectively a 3.67 % discount for the year.

If people decide to pay the outstanding balance after 31 August 2010, but before the increase in GST on 1 October 2010, while they will not be eligible for the early payment discount, they will enjoy an effective saving of 1.67%.

While the discount has to be confirmed with the adoption of the Council's Annual Plan at next week's Council meeting, it is certainly one of the items ratepayers should be aware of.

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