Brisbane City Council introduces surcharge for ‘old fashioned’ rates payment option

Brisbane ratepayers who receive paper bills will be hit with a surprise surcharge from December, as some retirees say they now pay more than $100 a year just for doing things the old fashioned way.

Valdy Kwitowski says older people are being penalised for a lack of tech expertise because of paper bill surcharges. Picture: Steve Pohlner

Retirees and others who use paper bills will be hit with a new $1.98 surcharge in their December rates notices, with some retirees saying they now pay more than $100 a year in charges for utility and other bills.

It was revealed earlier this year that council was also increasing its 0.52 per cent card surcharge to 0.78 per cent for MasterCard, Visa credit and debit card and American Express payments.

The card surcharge on an average rate account, which most residents found about when they received their latest rates notices, went from $2.13 to about $3.20.

Opposition Leader Jared Cassidy called the new paper bill surcharge a “low blow from Lord Mayor Adrian Schrinner’’.

He said council should scrap its $5m-a-year Living In Brisbane leaflets and use that money to subsidise the cost of paper bills.

In 2018, the federal government undertook a regulatory assessment of fees charged to receive paper bills.

It later asked to increase the take-up of exemption programs and promote them more widely, with businesses also needing to have at least 30 per cent of consumers who receive paper bills covered by an exemption program.

However, going electronic won’t necessarily save money, with a report by consultancy Payment Services in February finding the average Australian handed over a total of $140 in surcharges per year for the privilege of paying by phone or plastic.

Council’s Labor opposition brought a motion at this week’s meeting to rescind the surcharge but it was defeated by the LNP.

“In a cost-of-living crisis, the LNP Council is squeezing money out of pensioners via hidden fees on their rates bill. It’s disgusting,’’ he said.

“Do they really think it’s helpful to stick a QR code on the rates notice or offer a token gift card to try to make people go paperless and avoid their sneaky fees?

“Many of our local pensioners don’t even have the internet.’’

Valdy Kwitowski says older people are penalised for a lack of tech expertise. Photo: Steve Pohlner

However, council said it would still lose about 16 cents per paper rates bill, despite the higher surcharge, because combined postage and printing costs had surged 18 per cent.

About half of all ratepayers already received e-rates notices, pensioners qualified for rebates and there would be no surcharge for visually impaired ratepayers or not-for-profits.

A spokeswoman said most other utilities charged for paper bills and since council’s latest rates notices went out there had been a huge surge in people switching to e-rates.

Civic Cabinet Chair for Finance, Fiona Cunningham, said Australia Post charges had increased 35 per cent over the past two years alone.

“It’s gross hypocrisy for Cr Cassidy to criticise us when rates would have increased more than 32 per cent under a Green/Labor coalition of chaos,’’ she said.

“We’re giving advance notice that we’ll be offsetting these costs just like other councils and utilities.

Finance Committee Chair Fiona Cunningham. Picture: Richard Walker

“We’re committed to keeping costs down for everyone and Brisbane continues to have the lowest minimum residential rates in south east Queensland and Queensland’s most generous pensioner rebates.

“Around 42 per cent of Brisbane ratepayers already receive their account electronically, with a 1000 per cent increase in the number of weekly sign-ups over the past two weeks.’’

Resident Ava Warren has started a change.org petition protesting the surcharge.

“The Brisbane public was not consulted on this, and it is another clear example of politicians screwing over the general public under the mask of saving the environment,’’ her petition read.

“Once again (they are) pushing the responsibility on to the average households rather than big corporations.

“It also opens us up to potential security breaches which is a valid concern based on the previous data breaches, for example Optus and Medibank.’’

Opposition Leader Jared Cassidy. Picture: Liam Kidston

Retiree Valdy Switkowski said the surcharge hit retirees the hardest as they were the most likely to rely on paper bills.

“Paper rates notices have been issued free since Brisbane City Council was founded 100 years ago, but now we will be penalised for the same service,’’ he said.

“I don’t recall any mention of this new tax during the election campaign only seven months ago.

“While the council may see it as a trivial amount, many will find it just another expense to add to the cost of living crisis.’’

He estimated paying all his bills now cost him about $120 in paper surcharges.

Mr Cassidy said he was also concerned that when people opted in for electronic rates the Lord Mayor was given an opportunity for more personal advertising.

“Council will still need to post the free waste vouchers, so without paper rates to accompany them Adrian Schrinner has the space to add in a letter to toot his own trumpet,’’ he said.

Brisbane City Council encouraged ratepayers to switch to paperless bills before December 1 this year to avoid paying the surcharge, including incentives such as offering a draw to win one of 20, $100 gift cards.

Its rates rebate for pensioners increased by up to $46 this financial year, with the full pensioner rebate $1248 a year, the most generous in Queensland.