Invercargill City Council is asking the public what it thinks of proposed changes to the policy that governs rates postponement and remissions, with submissions closing at 5pm on 4 December.

The policy sets out when the council will defer rates or waive part of a bill for ratepayers facing hardship. Consultation opened on Monday 2 November.

Chief among the proposals is a new requirement: before applying to have rates deferred or written off, a ratepayer would need to have looked first at the Rates Rebates Scheme run by the Department of Internal Affairs, a scheme the council handles locally for the Government.

Trish Boyle, who chairs the Finance and Policy Committee, said remission and deferral were only one tool among several that could help ratepayers in financial difficulty. She wanted residents to understand the options available to them, including those that might apply before they reached a point of real hardship.

Boyle pointed to changes to the rebate scheme's income thresholds in 2025, which she said meant more households now qualified, including SuperGold cardholders. Anyone who had not looked at their eligibility for a while should take another look, she said, because a household turned down in the past might now qualify.

Living costs were rising, she said, and that was "a huge challenge" for more and more households.

Patricia Christie, the council's group manager corporate services, urged ratepayers not to wait until their position deteriorated but to get in touch with the rates team early. She said staff could explain the options, help people work out what they were eligible for and identify a next step suited to their circumstances.

The consultation comes as the council prepares its 2027-2037 Long-term Plan, with budget decisions expected later this month. Agenda papers for Monday's extraordinary council meeting show councillors are due to make decisions on budgets on 24 November, and the council has signalled pressure on rates from the operating costs of the new Te Unua Museum of Southland, which opens in 2027.

The council's annual report for 2025-26, adopted at the same extraordinary meeting on Monday, carries an unqualified audit opinion with an emphasis of matter on the uncertainty created by the Government's local government reforms and the Local Government Commission's investigation into reorganisation in Southland.

Rates rebates are paid once a year for the current rating year and are assessed on household income, the rates charged and the number of dependants. Applications are made through the council.

Details of the proposed policy changes and the submission form are on the council's Let's Talk consultation site. The council will consider feedback after the consultation closes before adopting a final policy.