RATE DEBTORS.

RATE DEFERMENT & FINANCIAL HARDSHIP

POLICY & PROCEDURE.

1. SCOPE & APPLICATION.

The scope of this procedure is to assess all applications for deferment of municipal rates and charges or to be excused from all or part of those rates and charges due to financial hardship by Council under the relevant provisions of the Local Government Act 1989.

2. RESPONSIBILITY.

It is the responsibility of the Manager Revenue and Valuations to receive all applications, prepare the report and submit a recommendation, in line with this policy, to the General Manager, Organisational Support.

3. REFERENCES.

Council may defer payment of rates, charges and interest annually under the provisions of section 170 of the Local Government Act 1989.

Council may waive the whole of part thereof rates, charges and interest under the provision of section 171(1) of the Local Government Act 1989.

The authority to consider and make suitable recommendations on these applications has been delegated to the Manager Revenue and Valuations.

6. PROCESSESS.

Rate Deferment

  • Application received.
  • Manager Revenue and Valuations assesses application and prepares a recommendation for consideration by the General Manager, Organisational Support
  • Property and rate records are flagged that an application has been received and details are recorded in the comments fields against the assessment.
  • Recommendation is forwarded to the General Manager, Organisational Support and upon review is returned to the Manager Revenue and Valuations.
  • Recommendation is recorded in the comments fields against the assessment and a copy placed on the relevant property file.
  • The applicant is advised in writing of the recommendation of the General Manager and a copy is attached to the relevant property file.

Financial Hardship

  • Application received.
  • Manager Revenue and Valuations assesses application and prepares a recommendation for consideration by the General Manager, Organisational Support
  • Property and rate records are flagged that an application has been received and details are recorded in the comments fields against the assessment.
  • Recommendation is forwarded to the General Manager, Organisational Support and upon review is returned to the Manager Revenue and Valuations.
  • Recommendation is recorded in the comments fields against the assessment and a copy placed on the relevant property file.
  • The applicant is advised in writing of the recommendation of the General Manager and a copy is attached to the relevant property file.

4. POLICY.

Sections 170 and 171(1) of the Local Government Act 1989 allow Councils to defer or waive all or part of any rates, charges or interest levied on a property where Council believes that the payment of such rates, charges or interest would cause financial hardship to the ratepayer.

Any rates, charges or interest deferred by Council shall remain a charge on the property until such time as the property is sold, or the ratepayer finds themselves in a better financial position and capable of paying the outstanding rates, charges or interest. Interest should continue to accrue until such time as the outstanding rates, charges and interest are paid in full.

Any ratepayer who applies for either of these options will have their written application assessed by the Manager Revenue and Valuations and a recommendation forwarded to the General Manger, Organisational Support for approval.

All applicants are to be advised in writing of the recommendation following approval by the General Manager, Organisational Support.

Applications must be made on a yearly basis upon receipt of the Annual Valuation and Rate notice for either of these options.

5. GUIDELINES FOR APPLICATIONS.

Factors to be considered when reviewing applications:-

  • Income sources and amounts
  • Total value of the applicants debts
  • Anticipated time the application may last
  • Current outstanding debt to council from all sources (eg. Rates, Sundry Debtor etc.)
  • Applicant should be a pensioner.

Possible actions available upon receipt of the application:-

  • Refuse the application
  • Defer or waive all or part of the outstanding debt
  • Defer or waive up to 50% of the outstanding debt and enter into an arrangement to clear the remaining 50%.

(A copy of the application forms are attached to this document)