Millions owed in unpaid rates, councils able to sell off defaulters’ land

South East Queensland residents are racking up monster debts and there is no end in sight to the pain. SEE WHO OWES WHAT

South East Queensland councils are owed millions of dollars in overdue rates, with some residents racking up massive bills worth hundreds of thousands of dollars.

As of the end of 2022, Brisbane City Council was owed a huge $30.7m in overdue rates, while on the Gold Coast the council was chasing down an even bigger sum of more than $40m. Residents and businesses in Ipswich City Council had amassed almost $10m in overdue rates by the end of last year, taking the total across the three councils to more than $80 million.

In Brisbane, the largest outstanding residential rates bill was more than $320,000, while the second biggest came in at $317,496, and the third biggest was $300,571.

Clayfield residents had the highest amount of overdue residential rates in Brisbane at more than $760,000, followed by Fortitude Valley residents who owed $484,980.

Brisbane city had the second highest amount of overdue commercial rates in the Brisbane City Council area. Picture: Brendan Radke

Salisbury, Kelvin Grove, and South Brisbane round out the top five suburbs with overdue residential rates in the River City – all owing upwards of $430,000 each.

The Brisbane suburb with the highest value of outstanding commercial rates was Fortitude Valley, with businesses owing $986,725, followed by the City where there is $769,552 yet to be paid.

On the Gold Coast, the top five suburbs for all forms of overdue rates were Surfers Paradise, Southport, Broadbeach, South Stradbroke, and Hope Island.

The council confirmed the top outstanding residential rates bills ranged between about $50,000 and $100,000, while the biggest overdue commercial rates bills ranged between roughly $100,000 and $280,000.

As of December 31, the biggest overdue residential rates bill in Moreton Bay came in at $106,259.

And the top five biggest overdue commercial rates bills in the region ranged between $50,994 to more than $710,000 – although most have since paid what they owe or are on payment plans.

Redbank Plains has the highest value of overdue rates in Ipswich, with more than $900,000 outstanding, followed by Springfield Lakes, Bundamba, Brassall, and Collingwood Park.

In Brisbane, the council has a debt management process to recoup overdue rates, and offers an opt-in SMS service to remind ratepayers to pay their bill.

The council will try to negotiate payment plans with ratepayers, but they also have the power to sell a ratepayer’s land to recover what is owed to the city if their bill is over three years outstanding.

Surfers Paradise was among the top five suburbs on the Gold Coast with overdue rates. Picture: Nigel Hallett

Ipswich Mayor Teresa Harding acknowledged homeowners were doing it tough in the current economic climate, and said her council – where it could – tried to assist with overdue rates.

“Two of our booming suburbs, Redbank Plains and Springfield Lakes, are included in the top five for overdue rates,” she said.

“These suburbs have seen significant population increases, combined with the increasing value of properties there, both old and new.”

Moreton Bay Regional Council has an item slated for their agenda this week to look at selling certain properties where rates bills are overdue.

“This move has already had the desired effect, with the majority of debtors choosing to pay their debt or go on a payment plan before the vote at (the) meeting, which is exactly what we wanted,” Mayor Peter Flannery said.

“We always send out reminder notices and encourage owners to contact us early if they are experiencing any problems.”

A Gold Coast City Council spokeswoman also warned the council could begin the procedure of selling a ratepayer’s property if they are more than three years overdue with their bill.