Paying council rates
Each council collects rates from residents and businesses in its municipality to help fund its local community infrastructure and service obligations. Typically rates make up about half of a council’s income. Council rates are a form of property tax. Councils use property values as the basis for calculating how much each property owner pays in rates. Read more about how rates are calculated.
Payment of rates
Rates are levied annually, and must be paid in four instalments, or as a lump sum if allowed by the council. Due dates for instalment payments are on the last day in September, November, February and May. Where lump sum payments are allowed they are due by 15 February. Councils generally include this detail and payment options on the back of their rates notices.
Sometimes a council may offer incentives to their ratepayers to pay before the due date. These must be declared when the rates and charges are formally declared and detailed on the rate notice.
Penalty Interest
If you are issued with a rate notice you should make sure you give it prompt attention. Councils generally charge penalty interest on unpaid rates and charges which, depending on the circumstances, may be calculated from the date that the rates were declared rather than the date that the payment was due.
The penalty interest rate is fixed under the Penalty Interest Act 1983. It is quite high, as it is based on commercial rates with the addition of a penalty amount.
Financial Hardship
Generally councils have a hardship policy under which they may defer or waive all or part of any individual ratepayer’s liability in cases of genuine financial hardship.
If you are suffering financial hardship, or will suffer such hardship if you pay your rates, you may apply to the council for a waiver of all or part of your rates or a deferral of your rate payment. It may be advisable to consult your council in advance of making an application to find out about the council’s hardship policy.
Councils also have the power to waive part or all of any rate or charge on ratepayers who are concession card holders under the State Concessions Act 1986 (eg aged pensioners). The minimum amount of the waiver is set by the state government and indexed (currently about $164). Councils are reimbursed this amount by the government. However individual councils may decide to increase the amount waived in some instances.
Unpaid Rates
Any unpaid rates remain a debt on the property, regardless of any change of ownership. If rates or charges remain overdue for more than three years and no arrangement has been made with the council, the council may obtain a court order enabling it to sell or assume ownership of the land to recover the debt.
Rebates and concessions
Under the Local Government Act, councils have the power to grant a rebate or concession on any rate or charge to assist “proper” development and the preservation of buildings or places of historical, environmental, architectural or scientific importance within the municipality. “Proper” development can cover land use, economic development and environmental objectives.
A council resolution granting a rebate or concession must specify the benefit to the whole community that the council considers will result.
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