Fraser Coast properties auctioned off by council to recover rates

The Chronicle can reveal how many properties have been sold at auction over rate arrears and how many are still at risk due to huge debts.

The auction for the three properties was held at noon on August 18 at the Carriers Arms Hotel in Maryborough.

More than 170 property owners and negotiation major rate debt repayments that have been outstanding for more than three years.

The revelation comes after the council confirmed $50,000 in unpaid council rates had been recovered through three property auctions earlier this year.

Originally, 30 Fraser Coast property owners were at risk of losing their homes or land.

Fraser Coast Regional Council CEO Ken Diehm said auctioning off properties for unpaid rates was always a last resort.

He said this year’s auction was the first the council had held to recover unpaid rates since 2016.

“Council had been talking with some of the property owners for more than five years to give them every opportunity to pay the outstanding amounts,” Mr Diehm said.

At the beginning of the year, 30 property owners were identified that had long-term outstanding debts of three years or more.

“After working with the owners, only three properties were listed for auction – two in Maryborough and one in Glenwood.

“The total amount of outstanding rates recovered for these three properties from the auction was $48,081.”

Mr Diehm said the number of homes listed as having overdue rates was always changing.

“The number of properties on the list changes daily as owners catch up on payments or enter payment plans,” he said.

“Starting the process to recover overdue rates gives those in arrears an opportunity to talk with their bank, access superannuation funds or enter into payment plans with the council rather than letting the amount grow.

“If owners do not wish to enter into a payment plan to substantially reduce the amount outstanding within a reasonable period, when the rates exceed three years overdue, the property owners are advised that the property would be recommended for sale at a public auction.”

Council CEO Ken Diehm. Photo: Cody Fox

Property owners have until the sale starts to remove the property from the auction list by payment of the full amount.

“Council recognises that people can be affected by events or illnesses that can impact their capacity to pay rates when they are due,” Mr Diehm said.

“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.

“Council also has a Financial Hardship Policy, under which ratepayers can apply to have interest suspended when they are experiencing financial difficulties.

“We encourage ratepayers experiencing financial difficulties to discuss their situation with Council to develop payment plans.”

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

In response to COVID-19, the council put a hold on all recovery action in 2020.

The auction for the three properties was held at noon on August 18 at the Carriers Arms Hotel in Maryborough.

As of Wednesday, a total of 174 Fraser Coast ratepayers were at risk of escalating action.