Rates rebates – what to do when house goes into a trust

If you decide to put your house into a trust you may still be eligible for a rates rebate – even if you are not one of the trustees.

To be eligible for a rates rebate you must be the ratepayer. The ratepayer is the person who is named as a ratepayer in the rating information database and the district valuation roll. Usually that is the owner of the land.

The Local Government (Rating) Act 2002 says that the person who is entered into the rating information database is either:

1. The registered proprietor; or
2. the lessee, where the lease is for more than 10 years and provides that the that the lessee must be entered in the rating information database and the district valuation roll as the ratepayer in respect of the unit. That lease must also be registered against the title.

You will need a lawyer to set up a registered lease. The cost of setting up a registered lease is likely to be $600-$900 so you will need to weigh up the cost against the likely benefit.

Call us if you would like to arrange a registered lease in order to get a rates rebate.

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