2026/27 FINANCIAL POLICIES · Attachment 7 - General Rates and Charges Financial Hardship Policy

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Attachment 7 – General Rates and Charges Financial Hardship Policy
 COUNCIL POLICY

 Legislative Requirements

 Section 120(1)(c) of the Regulation states that “the local government may grant the concession only if
 it is satisfied the payment of the rates or charges will cause financial hardship to the landowner.”

 What is Hardship?

 Hardship is not a fixed concept; it may may arise in a variety of situations, requiring case-by-case
 consideration, for example:

  •   long-term unemployment, or loss of employment, of the landowner or family member
  •   reduction in income
  •   increase in non-discretionary expenditure
  •   family breakdown, including domestic violence
  •   elder abuse
  •   death in the family of the landowner
  •   adverse health issues, including illness (physical or mental), physical incapacity, or hospitalisation,
      of the landowner or landowner’s family member
  •   natural disaster affecting the landowner or their dependents
  •   other factors resulting in unforeseen changes in the landowner’s capacity to meet their payment
      obligations.

 Eligibility Criteria

 To be eligible for a concession under the Policy:

  •   the applicant must be a sole or joint owner of the property
  •   the property must be the landowner’s principal place of residence
  •   the applicant must have legal responsibility for payment of the property’s rates and charges
  •   the landowner must provide sufficient information to demonstrate that they will suffer hardship if
      required to pay rates and charges when due
  •   the property is not let, partially or fully, short-term or long-term
  •   the owner must demonstrate a sound payment history for Council rates and charges
  •   the balance or amount payable must exceed $1,000.

 A landowner will not be eligible to make an application under the Policy if:

  •   s/he owns more than one property; or
  •   Council has commenced recovery action by (a) referring the matter of the outstanding rates to a
      debt recovery agency, or (b) commencing legal proceedings itself, or (c) given the owner, per
      section 140 of the Regulation, notice of intention to sell the land for overdue rates.

 Types of Concession provided

 1. A 12-month interest free payment plan under which all outstanding rates and charges will be paid
    within 12 months of the agreement.




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Attachment 7 – General Rates and Charges Financial Hardship Policy
       To be eligible, the landowner must submit a completed Hardship Concession Application Form and
       a statutory declaration including sufficient supporting information such as:

       (a)   the event or events that impacted on the landowner’s ability to pay the rates and charges
       (b)   the landowner’s estimated income and expenditure from all sources for the year in which the
             application is made, and for previous financial years when the rates and charges were not
             paid
       (c)   the current balances of any bank accounts and investment accounts held by or for the
             landowner, and a description of all loans including balances owing, and if relevant the extent
             to which any loan payment is overdue (note that account numbers will not by requested and
             should not be provided)
       (d)   the landowner’s assets – whether the asset is owned by the landowner or by a company in
             which the landowner has a controlling interest – including the estimated value of each asset
       (e)   details of superannuation fund balances and if an early release has been sought to assist in
             paying the debts.

 2. A 2-year interest free payment plan under which all outstanding rates and charges will be paid within
    2 years of the agreement.

       To be eligible for this type of concession the landowner must provide the information requested for
       the 12-month interest free payment plan and provide proof they have engaged with a licensed
       accountant or other licensed financial counsellor, who has determined that there is a reasonable
       expectation the landowner will be able to clear all outstanding rates and charges within the 2-year
       period.

 Information on where to access a financial counsellor can be found on the Australian Government
 website www.afsa.gov.au/i-cant-pay-my-debts/support-services/where-find-help-managing-debts.

 Payment plans under the Policy will be interest-free for a maximum period of 2 years from the date the
 plan is approved by Council. Interest accrued prior to this date will not be reversed/rebated. Payment
 plans will be reviewed quarterly, and interest will accrue again from the date of any default in making
 a payment under the agreed plan.

 Council’s usual debt recovery action will be suspended while a payment plan is in place and being
 followed. Council officers must ensure that the aggregate of outstanding rates and recovery costs does
 not exceed the market value of the property.

 Exceptional Circumstances

 After obtaining a concession under the Policy, a landowner is not eligible to make another application
 for two years unless s/he:

 (a)     demonstrates in the fresh application that s/he has made significant progress in reducing the
         value of arrears (generally a 40% reduction in the debt will be regarded as significant progress),
         or
 (b)     demonstrates that s/he exhausted all other avenues to avoid, alleviate or escape the hardship –
         for example by making real efforts to sell the property or other assets.

 Exceptional circumstances beyond those recognised in the Policy will be considered case-by-case and
 presented to the Council for individual consideration.

 Failure to Comply




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Attachment 7 – General Rates and Charges Financial Hardship Policy
 Council reserves the right to rescind a concession and commence or recommence debt recovery action
 should the ratepayer fail to comply with agreed concession requirements, e.g., by defaulting in payment.

 ROLES AND RESPONSIBILITIES

 Councillors
 Councillors consider and adopt Council’s Rates and Charges Financial Hardship Policy.

 Chief Executive Officer (CEO) and Executive Team
 The CEO and Executive Team endorse the Policy for Council adoption and provide leadership and
 commitment in complying with the Policy and relevant legislation and documents.

 Revenue Services
 Revenue Services assess and process applications, maintain the list of applied concessions, and
 undertake reviews of eligibility in accordance with the Policy.

 Applicants
 Landowners who apply for consideration under the Policy are entitled to a prompt response to their
 application and to be kept informed of the progress and outcome of the application process.


 RELEVANT LEGISLATION AND POLICIES

 Local Government Act 2009
 Local Government Regulation 2012
 Revenue Statement
 Revenue Policy

 HUMAN RIGHTS AND ANTI-DISCRIMINATION COMPATIBILITY STATEMENT

 In developing the Policy, the subject matter has been considered in accordance with the requirements
 of the Human Rights Act 2019 and the Anti-Discrimination Act 1991. It is considered that the subject
 matter does not conflict with any human rights or anti-discrimination imperative, and supports a human
 rights and non-discrimination approach to decision making by Council.

 The Policy should be read in conjunction with the Human Rights Act, Council’s Human Rights Policy,
 and the Anti-Discrimination Act.




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Attachment 7 – General Rates and Charges Financial Hardship Policy
 Version control:
  Version       Reason/ Trigger      Change (Y/N)   Endorsed/ Reviewed by   Date

  1.0           New                  N              Council                 28/06/2024

  2.0           Review               N              Council                 30/06/2025

  3.0           Review               N              Council                 23/06/2026




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