Three yearly increases in council property rates used to be the norm; it's about to change to yearly for the next 10 years. The annual increases will be indexed with regards to net growth, which I understand to mean indexed to total dwellings versus council total rate target. However, there is a twist to visualising these increases. Note, kerbside charges are not included.

Say your current rates (2021) are $2500 per annum, then add GST to give a total of $2875. Imagine a scenario where rates are to be increased by 10 per cent yearly for 10 years. Compounded to the year 2031, your rates bill would have increased by $4581 to $7457 inclusive of GST.

The Tauranga Average Salary Survey 2021 quotes $64,801 as the most typical earnings. If that salary was increased by one per cent annually for 10 years it would be, in 2031, $71,580.

Year 2031 salary of $71,580 minus year 2021 salary of $64,801 amounts to a $6779 gross increase in salary.

Take away PAYE tax of $2081, that leaves a net increase of $4698. Taking away the $4581 increase in rates inclusive of GST leaves the person $117 better off than they were in 2021. If cost of living rises over 10 years were included, then the person would probably worse off.

Dave Wilson, Mount Maunganui.