Councils force property sales as they chase more than $54 million in debts
Councils sold 27 properties last financial year in a bid to claw back years’ worth of unpaid rates, with at least $54 million outstanding. These are the councils owed the most – and which have reclaimed the most.
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Councils across the state are resorting to drastic measures to recover years of unpaid rates, including the forced sale of 27 properties last financial year.
A survey by The Advertiser found more than $54m in rates remained outstanding at the end of 2019/20, while councils referred about 10,700 people to debt collectors.
However, the statewide figure would be much higher because only 37 out of the 68 SA councils responded to the survey.
Councils have moved to prosecute about 1450 people for not paying rates, though many of these cases were placed on hold due to the COVID-19 pandemic.
Unpaid rates for 37 SA councils
Councils can sell properties if owners have had outstanding bills for more than three years, but must first go through a process of recovering debts and offering assistance through payment plans.
Port Pirie Council sold 10 properties during 2019/20, while Wakefield Council sold seven, and Playford four, including three derelict properties.
Northern Areas Council, based in Jamestown, sold two properties; both declared unfit for habitation.
Port Pirie’s director of corporate and community, Lynne Walden, said the council began moving to sell about 30 properties but only 10 made it to the market, after arrangements were made with most owners.
Most were undeveloped land or vacant business premises. One was owner-occupied but they were able to rent the property back from the new owner.
“Many of them (rates bills) had been outstanding for more than 10 years,” Mrs Walden said.
“People are making payments but ... each year they’re just getting further and further behind.”
She said it took about a year between when the council moved to sell a home and the actual sale, but in most instances arrangements were made before it got to that point.
“We can put them in touch with financial counsellors and make arrangements for them to meet with their bank. Generally, it’s not just rates that they need to pay – it’s a bigger problem.”
Wakefield Mayor Rodney Reid said in many instances, sold properties were part of deceased estates.
“There’s often misunderstandings about who the benefactors are and finding them isn’t easy,” he said. “Selling off a property is the last of the options we can take.”
Amid the pandemic, Wakefield Council agreed to waive its fourth quarter rates bill for 2019/20 for anybody experiencing hardship.
It has also given almost $300,000 in grants to sports and community clubs and businesses to soften the blow of COVID-19.
Local Government Association president Sam Telfer said councils understood households and businesses were doing it tough and worked with ratepayers experiencing hardship.
“Ratepayer contributions need to be managed in a fair and equitable way and it’s important that councils are able to recover outstanding debts to ensure that other ratepayers don’t end up paying more,” he said.
michelle.etheridge@news.com.au
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