The Government has decided to support a Labour Party bill on its first reading so that rates rebates for people living in retirement villages can be considered.
Local Government Minister Sam Lotu-Iiga says retirement village residents aren't directly liable for paying rates and don't qualify for a rebate.
But most village operators, who do have to pay rates, charge a portion of the total rates to their residents.
"So residents do, in fact, end up paying rates," he said.
"We need to review the rates rebate scheme to help retirement village residents on low incomes."
Labour's Ruth Dyson drafted a member's bill to deal with the situation, and Mr Lotu-Iiga says the Government will support it through its first reading so it can go to a select committee.
"The select committee will be able to look at various options to support elderly residents in retirement villages," he said.