Fraser Coast council votes to auction off properties to recover rates

Dozens of properties could go under the hammer to recover $1.2m in overdue rates, the Fraser Coast Regional Council has decided.

The council is set to auction off properties to reclaim unpaid rates.

The Fraser Coast Regional Council could sell 46 properties to recover more than $1.2m in unpaid rates.

Councillors voted in favour at Wednesday’s meeting to begin the sale of land process to recover longstanding overdue rates and charges.

“Auctioning properties for unpaid rates is always a last resort,” a council spokesman said.

“Council has been talking with some of the property owners for several years to give them every opportunity to pay the outstanding amounts.”

The spokesman said the council recognised that people could be affected by events or illnesses that impacted on their capacity to pay rates when they were due.

“Council endeavours to keep in regular contact with affected property owners and makes every effort to secure payment within a reasonable timeframe with auction as a last resort in instances where rates have been overdue for many years,” he said.

“Starting the process to recover overdue rates also gives those in arrears an opportunity to talk with their bank, access superannuation funds or offer and adhere to payment proposals with council rather than letting the amount grow.

“If owners do not wish to offer and adhere to payment proposal to substantially reduce the amount outstanding within a reasonable period – and when the rates exceed three years overdue – the property owners are advised that the property would be recommended for sale at a public auction.

“We encourage ratepayers experiencing financial difficulties to discuss their situation with council to offer and adhere to payment proposals.”

They said as of February there were 46 property owners identified with long-term outstanding debts of three years or more owing a combined $1.275m in unpaid rates.

“Property owners have until the sale starts to remove the property from the auction list by payment of the full amount,” they said.

“Once the land is sold, council only retains the value of the outstanding rates and charges with the balance provided to the mortgage holder or property owner.

“It is unfair on other ratepayers who have to shoulder the cost of providing services, which are also being used by the property owners who are not paying rates.”

In 2021 council identified 85 properties which had long-term outstanding debts of three years or more owing $1,978,328 in unpaid rates.

After working with the owners, only 26 properties owing $660,482 were listed for auction in 2022.

Of those 20 were sold at auction to recover $487,777.

Council worked with the owners of the remaining properties to recover unpaid rates.